In-store promotions are a great way to increase sales and attract customers. They provide multiple touchpoints to make people aware of the communication value of the product and offer a personalized experience during the shopping session. This article will discuss 15 in-store promotion tactics to help you increase sales, as well as the best ways to track your campaign's performance. When it comes to fast-moving consumer goods, it's hard to choose.
That's why in-store marketing is essential. For example, when a customer goes to the store's body spray area, she sees at least 10 brands, not to mention fragrances and labels. By adopting a good in-store advertising campaign, you will be able to differentiate yourself from the competition. Considering the COVID-19 crisis, customers want to buy the bare minimum, so they focus on essential products.
If your brand is in the premium or leisure section of the store, your sales may be dropping. COVID-19 has a big impact on retailers and brands that sell exclusively in stores. While e-commerce is flourishing, physical stores lose money every day. Some countries even closed physical stores, leaving only a few grocery stores that sell essential products (food, cleaning products, medicines).
Nowadays, considering COVID-19 regulations, food samples are banned, which means you'll have to think of a different strategy. But keep that in mind for better and safer times. Did you know that consumer goods brands invest more than 20% of their total revenue in in-store promotions? Your incremental ratio during this in-store promotion is negative (- 7). If you sold more than 150 token bags, your incremental rate would have been positive.
It's easy, the more people buy from your store, the more coupons they'll receive. Let's say that for 10 coupons, you get a 50% discount for a certain product line from your store. In the end, people will end up buying more products just to get a better deal. In addition, 20% and 33% seem to be large percentages of discount. However, it depends on the type of product you sell.
If it's a high-end product at a high price, you could easily offer a 10% discount and people will spot it right away. Most in-store promotions can help you increase sales by 20%. Fortunately, there is a people counting solution like Dor, which makes it easy for retailers to gain visibility into each store to better understand foot traffic and its sales conversion rates.
15 In-Store Promotion Tactics
1.Offer Temporary DiscountsOffer a temporary discount on popular services or products as part of an in-store promotion.
2.Gift Extra or Imperfect Shares
Gift extra or slightly imperfect shares as part of an in-store promotion.
3.Bundle Services or Products
Promote a cheaper price on services or products when bundled.
4.Loyalty Programs
A survey by Nielsen shows that 84% of consumers are more likely to stay with a company that offers a loyalty program.
5.Rewards Programs
Leverage existing customers with rewards or loyalty programs to increase revenue and maintain a satisfied customer base.
6.Product Demonstrations
Product demonstration is another popular form of in-store promotion that allows shoppers to see a product in action or experience it firsthand.
7.Seasonal Sales
Offer seasonal sales, promotions and discounts for both major holidays and regional holidays.
8.Free Samples
Organize workshops to promote new toys and treats to raise awareness of new products and allow customers to try before they buy by handing out free samples.
9.Signs & Banners
Promote your product in-store with signs, banners, coupons, television screens and other branded media.
10. Retail Partnerships
Product promotion with retail partners allows emerging brands to lower the test barrier for potential consumers and test the price elasticity of products across different sales channels.
11. Brand Awareness
In-store promotions expose customers to your brand, distinguishing it from the rest of the brands that exist.
Tracking Performance
Now that we've established the best ways you can track your campaign's performance, let's see what types of in-store promotions are the best.12. Incremental Ratio
The most common KPI to measure when implementing an in-store promotion is ROI (return on investment).
13. Investment Percentage
Too often brands become obsessed with achieving a specific percentage of commercial investment and design a promotional strategy to achieve that goal.
This shows that you've invested too much in advertising your promotion and that it's time to reduce some of the expenses before your entire promotion becomes inefficient.
In conclusion, in-store promotions are an effective way to increase sales and attract customers by providing multiple touchpoints for communication value of the product and offering personalized experiences during shopping sessions. By understanding different types of promotions and tracking performance metrics such as ROI (return on investment) and incremental ratio (increase/decrease in sales), brands can create holistic promotional plans with their retail partners.
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