Planning promotions with a yearly calendar is a good way to achieve your business goals. Whether you want to boost sales during slow periods, or hold flash sales to motivate current customers to buy additional products, this is an effective and organized approach that gets results.
It would seem like the more sales and promotions you offer, the more results you’ll get. But this isn’t always the case. If you offer too many, you run the risk of promotion overkill. Here are the top 3 reasons why you should limit your promos.
When you offer occasional promotions throughout the year, your customers will be excited. You can build buzz leading up to each and which could result into more sales. But if you run too many, your audience could burn out and your promotions will lose their effectiveness and novelty over time.
One way to mitigate this is to mix up your promotions. Offer discounts on different types of products and services. Segment and target specific groups within your audience. Try to find the most important and relevant times of year for your promotions.
Devaluing Your Brand
Holding too many promotions can devalue your brand. People will see you as a business that offers cheap goods. Ideally, your customers buy from you because your products and services offer unique solutions to their problems. They love the value you offer, not just the low prices.
For example, if you run a promotion once every two months like clockwork, people will wait until the next promotion to buy from you. They know you’re going to run it, so they’ll just plan their buying around the sale and never pay full price.
Offering constant promotions can also hurt your bottom line. If you’re always selling below the regular price, you simply won’t earn as much from your sales. You’ve put in the work setting your product pricing so that it yields a good return on investment. Promotion overkill will undermine these efforts.
Promotions are a way to get a temporary burst of income when you need it. You should plan them during sales slumps when people aren’t buying like they usually do. This way, promotions won’t interfere with your regular sales.
Finding the Sweet Spot
Promotions are a great strategy but don’t overuse them. They should offer incredible value, not just a reduced rate. How many promos should your business run? This depends on your customers and your brand. Every target audience has their own sweet spot. Find yours by creating a yearly promotional calendar and testing it out.
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Pat Simes is a Business Strategist, blogger and Founder of Innovative Business Solutions and Innovate Academy. She currently resides in the Midwest and is committed to inspiring and empowering entrepreneurs to transform their vision to reality.