The Importance of Discounts and Promotions for a Retail Store

Small retail businesses often suffer from times when their daily receipt generation system goes down. To improve sales, and get new customers, as well as retain current customers, SMEs are always on the lookout for better retail solutions. Retail POS software, therefore, is a popular choice to boost sales and improve the overall operations of a retail store. 

But, even if your processes are streamlined and your bills generated accurately; it’s not enough to get you the sales you want. To attract costumes, good marketing strategies are a necessity. If you have promotions and discounts on the products of your store, you will not only have loyal customers but also attract new customers. There are various techniques that your marketing team can apply to boost your sales, but know this that some of those techniques will be paid. However, you need to have complete data on the money spent and ROI. Tracking your sales promotions is essential to increase the profits in your store.

 

Loss Leader: 

The loss leader is a marketing strategy to sale a price below its market cost to boost the sales of other profitable goods alongside this product. This product is, therefore, known as the leading product. The business doesn’t suffer any loss by selling these, but it doesn’t get any profits too (or very minimal profit, in some cases). Loss leaders are effective for selling out stocked products, increasing traffic to your brick and mortar store and eCommerce website, and building brand awareness. Loss leader campaigns should be run regularly to keep the business at the top of your customer’s and potential customers’ mind! 

Item Placement: 

Item placement matters a lot. You need to have your most profitable items next to the cash counters as customers tend to purchase items on a whim at checkout points. This strategy can cause a huge increase in your revenue. Make sure that these items are packed in attractive packaging so they automatically draw the customer’s attraction. 

Repeat Customers: 

Repeat customers are the most important asset of a retail business. A way to encourage customers to return is by running a loyalty or rewards program. Specify the number of points per purchase. Another popular phenomenon for coupon generation that is to offer coupons to the customer who downloads the app or like the store’s page on social networks. Having your customers’ social information allows you to improve customer service by keeping them informed of new items of their interest. 

Free Samples: 

Free samples attract customers like flowers attract bees! A store that offers free sample entices customers to make purchases. Another strategy is to attach a low-cost product with one that is high-cost and high-value. It’s human psyche to move towards items that offer you more products for the price of one. However, proper research needs to be conducted before running such promotions, otherwise, these campaigns can cause you to lose money! 

Conclusion: 

If managed right, sales promotion campaigns can be very effective and bring great benefit to the company. But, it is vital that the number of sales resulting from these campaigns is recorded. If the campaign isn’t proving to be beneficial, it should be stopped, immediately. It’s also a good idea to place limited-time options as it tends to attract customers too. It’s also easy to look at the trends and gauge your ROI if you have a specified timeline. POS systems have the ability to generate customized discounts and promo codes and thus, should be used to support your marketing team.