Promotions are a powerful way to increase customer engagement due to the influence of price in the buying decision. With significant price drops or quirky gifts, generating higher traffic to the e-commerce site and boosting sales among new customers and loyal consumers will be easier. In turn, promotions help improve brand visibility. But it is not true that anything goes with promotions, and they won’t all be equally effective. From Minderest, we give you the keys to ensure that your e-commerce promotions are consistent with your pricing strategy and reach their maximum potential.
Planning a promotional campaign
A successful promotional campaign requires significant pre-planning and a study of several key aspects of the company. You should have a clear objective before you launch promotions. The objective can range from running out of stock for a particular item to reaching a new target market that does not yet know the brand. It could even be just to boost profits at a specific time of year. Whatever it is, it must be there from the start as it will affect the planning and design of the promotional campaign.
At the same time, you should analyse the overall demand in your e-commerce business. This will help identify which products generate the highest sales volume and how users react to price changes on those products. This will be easier if you already have an effective product classification. From this information, you will be able to define which items to put on promotion in light of previously determined objectives.
Choose the target audience and define the type of promotion
It will also be crucial to segment the target audience properly, according to the objectives. It is important as the more you define which buyer persona your promotion targets, the more accurate the messages and the way they are delivered. For example, a promotion aimed at a young target market will ideally move through social networks in a fresher and more familiar language. In addition to social networks, you can use email marketing, influencer campaigns, large-scale promotions, or traditional media.
The same applies to the type of promotion, which will depend on the factors mentioned above. The most successful promotion types are discount vouchers, flash sales, additional gift items, or online games and competitions.
Finally, check that you have the stock and technical means to cope with the increased web traffic and orders that may result from launching promotions.
Monitor your competitors’ campaigns
The success of promotions is also linked to an extent to competitors’ campaigns and prices. It is worth its weight in gold for your e-commerce to be the only one running a promotion at any given moment. You need to know your competitors’ pricing strategy and the offers and discounts they have introduced to predict their next moves and stay one step ahead. This will make it easier to stand out from other brands.
Today’s most advanced price monitoring software allows you to track competitors’ prices on their e-commerce sites, marketplaces, price comparison sites and B2B portals. It provides detailed and up-to-date information about their strategies.