Using promotional offers for your E-commerce business is one of the most effective ways to build awareness for your business and market your product or service. When you have just started your e-commerce business or launched a new product, no one knows about you, and no one cares about your product or service, and it is time to introduce it to the market through a promotional campaign.
Why Promotional Offers are Important
Promotional offers encourage the first purchase or make an upsell. For example, if you are selling a mobile phone, you can have the phone on offer to inspire the first sale or have earphones on offer as an upsell.
Many brands have and are continuously using promotional offers to raise awareness for their products and services and to increase sales.
A good example is Uber. When Uber first launched, it gave its customers discounts on their first ride. As a result, this offer encouraged potential clients to try out the Uber app and experience the service.
E-commerce stores such as Jumia also have a lot of promotional offers throughout the year on their products.
So how do you run an effective Promotional Offer campaign for your e-commerce site?
Using promotional offers isn’t just about discounting your products/services or buying merchandise and putting your logo on it. Most importantly, you need a strategic approach to run an effective promotional campaign that gets you results.
1. Have a goal for your promotional offer campaign.
Firstly, you need to set goals for your campaign. Objectives for your campaign could be to :
-Raise awareness for your product/service
-Reach a new market
-Increase appeal for your product/service
-Get repeat business from your past clients
-Upsell a product/service
2. Know your target market
Secondly, you should have the customer in mind while preparing for your promotional offer campaign. Know what problem are you solving for them, what they want, what they like, and what would be valuable to them. Knowing your customer well enough helps you to make an offer they cannot refuse. For instance, would they prefer a 50% discount on your product or buy one get one free or would they appreciate a gift?
3. Decide on your offer campaign
Thirdly, after figuring out your goal and your target market, decide on which offer is the most productive. The campaign should capture the right audience, encourage potential customers to purchase the products/services, and should be financially feasible. Types of promotional offers you can choose from:
- Percent discounts
- Amount off
- Free Shipping
- Free gifts with purchase
- Branded merchandise (water bottles, t-shirts, etc.)
4. Advertise the promotion
No one will know about the promotion if you do not advertise it. Thus, you must advertise your promotion to your target audience. In addition, a good advertisement should capture attention fast (appealing offer), state the product/service and what it does or why we should purchase it, and directly link to the checkout. Social media and email marketing are the easiest and cheapest way to advertise your promotional campaign and they allow you to measure results easily.
5. Measure results
Measuring the results of your campaign will help you discern whether the campaign worked or not. Most importantly, focus on the effectiveness of individual parts of the campaign. Was the offer right? Did you capture the right audience? Was the advertising method effectual? Was the purchasing process seamless? etc. Moreover, you can also do an A/B test to see which promotional offer works best compared to the other.
Golden tips when running Promotional Offer Campaigns
1. Create urgency & scarcity
Always have a deadline for your campaign and let your target customers know the deadline. This will ensure they make their decision quickly or else they will miss out on the offer.
In addition, have a limited amount of products on offer to create scarcity. This will bring a FOMO feeling with potential clients.
2. Get your customers to play in and involve their friends
Your customers are your best marketing channel. So, get them involved in your campaign by asking them to do something like taking a picture with your product and posting on social media and tagging their friends to win prizes.
3. Customize the promotional items/merchandise
Earlier we said that you need to think about your target market and what they would appreciate having. Therefore, think about how your customers will use the product and how its use will keep your brand top of mind. Similarly, go for items they can use every day and other people will see and want to have.
4. Let them know what you care about
The choice of your promotional items is a message in itself. Think about what you will be communicating with your promotional item. For example, if you are selling fitness products and you give your customers water bottles, it shows that you care about their health and you are encouraging them to drink water. People love to be associated with good causes, so choose an item that stands for something.
5. Brand your promotional items
Your promotional items must be branded to build awareness for your brand and stay top of mind. However, branding is more than just putting your logo on a product. Read here on how to brand your promotional items.
6. Tie it in with referral marketing
Lastly, if you want your promotional campaign to skyrocket, tie it with a referral marketing campaign. You can give discounts and gifts to each person who refers you to somebody else. As a result, you will build awareness for your brand valuably.
In conclusion, promotional offers are valuable to your business in that you reach both new and existing customers and helps you to build brand loyalty. Moreover, you can engage a marketing agency to help you create an effective promotional campaign that brings you new leads without eating into your profit.