Insights

Sales Promotion Explained: Definition, Benefits, Examples and More

Sales Promotion Plan: Step-by-Step Guide

Having an outstanding product or service that people would love is just the first step. Often, the challenge lies in generating enough sales to sustain and grow your business. This is where sales promotions become essential. They provide the push needed to attract attention, encourage purchases, and build customer loyalty.

In this blog, we will cover the step-by-step process of planning an effective sales promotion, from setting clear goals to evaluating the results.

Key Steps for Creating Your Sales Promotion Plan
Sales Promotion Planning: Step-by-Step Guide
Popular Types of Sales Promotions
Conclusion
Get in Touch
FAQs
Additional Resources

Key Steps for Creating Your Sales Promotion Plan

Define Clear Goals: Set specific, measurable, achievable, relevant, and time-bound (SMART) goals for your promotion.
Know Your Audience: Identify and understand your target audience to tailor your promotion effectively.
Choose the Right Promotion Type: Select the sales promotion tactics that best align with your goals and audience.
Craft Compelling Messaging: Develop clear, persuasive messages that resonate with your audience.
Select Channels and Timing: Choose the appropriate channels and optimal timing for your promotion.
Set a Budget: Plan and allocate your budget to cover all promotional activities.
Conduct a Risk Assessment: Identify potential risks and develop strategies to mitigate them.
Plan Your Timeline: Create a detailed timeline to ensure the smooth execution of your promotion.
Launch and Monitor: Execute your promotion and closely monitor its progress.
Evaluate and Learn: Assess the success of your promotion and gather insights for future campaigns.

Sales Promotion Planning: Step-by-Step Guide

1. Define Your Goals

The first step in any successful sales promotion is to define your goals. Ensure they are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. Clear objectives will guide your strategy and help you measure success.

Example Goals:
- Increase sales by 15% in the next quarter.
- Acquire 500 new customers within two months.
- Clear out 30% of excess inventory by year-end.

2. Know Your Audience

Understanding your target audience is crucial. Gather data through surveys, social media insights, and customer feedback to identify demographics, preferences, and buying behaviours. Consider creating buyer personas to humanise your audience and tailor your promotion to their needs.

3. Choose the Right Promotion Type

Selecting the right sales promotion tactic is crucial for your campaign’s success. The best promotion type depends on your specific goals and target audience. Understanding your objectives and who you aim to reach will guide you in choosing the most effective promotion.

Consider what you want to achieve: Are you looking to drive immediate sales, clear out inventory, or build long-term customer loyalty? Different sales promotion solutions serve different purposes. Discounts and coupons can quickly boost sales, while contests and sweepstakes create excitement and engagement. Free trials reduce hesitation around new products, and referral programs leverage existing customers to attract new ones.

By aligning your promotion type with your business goals and customer preferences, you ensure that your campaign effectively drives the desired outcomes. The right promotion type can make a significant impact on your marketing success.

4. Craft Compelling Messaging

Develop clear, persuasive messaging that communicates the benefits of your promotion. Use attention-grabbing headlines, strong calls to action, and compelling visuals. Ensure your messaging aligns with your brand values and resonates with your target audience.

5. Select Channels and Timing

Choose the marketing channels that best reach your target audience, such as social media, email marketing, paid advertising, or influencer partnerships. Ensure consistent messaging across all channels and launch your promotion during optimal times to maximise impact.

6. Set a Budget

Establish a budget that covers all promotional activities. Consider both fixed costs (e.g., creative development, market research) and variable costs (e.g., media advertising, sales commissions). Using past data can help evaluate costs and set a realistic budget.

7. Conduct a Risk Assessment

Identify potential risks that could affect your promotion, such as market changes or logistical challenges. Develop strategies to mitigate these risks and ensure compliance with legal and regulatory requirements.

Learn more about Promotional Risk Management.

8. Plan Your Timeline

Create a detailed timeline with key milestones and deadlines. Assign responsibilities to team members and use project management tools to track progress. Build in buffer time to account for unexpected delays.

9. Launch and Monitor

Execute your promotion and closely monitor its progress. Track key metrics such as sales, website traffic, and customer engagement. Be prepared to adjust your strategy based on real-time feedback and performance data.

10. Evaluate and Learn

After the promotion ends, evaluate its success against your initial goals. Analyse sales data, customer feedback, and engagement metrics to understand what worked and what didn’t. Use these insights to improve future promotions.

Popular Types of Sales Promotions

Here are some of the most effective sales promotion types, each tailored to boost sales and engage customers:

Cashback Promotions: Offer customers a partial refund or discount, increasing purchase incentives while maintaining price integrity.
Trade-In Promotions: Encourage customers to exchange old products for new ones, often with additional benefits like cashback or rewards.
Buy & Try Promotions: Offer a risk-free, no-obligation trial period to boost confidence in new products and encourage purchases.
Referral & Rewards Programs: Increase brand awareness and loyalty by rewarding customers for referrals and repeat purchases.
Gift with Purchase: Provide an additional product or service for free, enhancing perceived value and encouraging higher sales.
Instant Win Promotions: Create excitement with the chance to win prizes instantly upon purchase, driving immediate engagement.

Conclusion

Sales promotions are a powerful tool to drive sales, attract new customers, and build brand loyalty. By following this step-by-step guide, you can plan and execute effective promotions that align with your business goals and resonate with your target audience. Remember, each step is crucial to ensuring the success of your promotion.

Get in Touch

Ready to take your sales promotions to the next level? Contact Opia today to discuss how we can help you design and execute innovative, results-driven sales promotions tailored to your business needs. Our team of experts is here to support you every step of the way.

FAQs

Q: What are the steps in a sales promotion plan?

A: Key steps include defining your goals, knowing your audience, choosing the right promotion type, crafting compelling messaging, selecting channels and timing, setting a budget, conducting a risk assessment, planning your timeline, launching, and evaluating your promotion.

Q: What is the promotion planning process in marketing?

A: The promotion planning process involves setting objectives, identifying the target audience, selecting promotion types, creating a budget, developing a timeline, executing the promotion, and evaluating its effectiveness.

Q: Why are sales promotions important?

A: Sales promotions drive immediate sales, attract new customers, boost brand awareness, enhance customer loyalty, and provide valuable data for future marketing strategies.

Q: How do I choose the best sales promotion tactic?

A: Choose the tactic that best aligns with your goals, target audience, and overall marketing strategy. Consider options like cashback promotions, trade-in programs, and instant win promotions based on your specific needs.

Q: What metrics should I track to evaluate my sales promotion?

A: Track metrics such as sales volume, customer engagement, website traffic, social media interactions, and customer feedback to evaluate the success of your promotion.

Additional Resources

For more insights and examples on effective sales promotions, check out our related blog posts:

Cashback Promotions: What Are They and How Do they Work?

Gift with Purchase (GWP) Guide: Meaning & Examples

Sales Promotion Planning: Step-by-Step Guide

What is Sustainable Marketing and How Should You Use It?

With the increasing demand for eco-friendly products and ethical business practices, sustainable marketing has become essential for companies looking to stand out. Sustainable marketing not only benefits the planet but also enhances brand reputation and customer loyalty.

Studies have shown that 38% of consumers are willing to pay more for sustainable items. By incorporating sustainable marketing strategies, businesses can meet consumer expectations and achieve their commercial goals.

Key Takeaways
What is Sustainable Marketing?
Examples of Sustainable Marketing
Benefits of Sustainable Marketing
Key Considerations for a Successful Sustainable Marketing Strategy
Ways to Include Sustainability in Your Next Sales Promotion
Case Studies: Sustainable Sales Promotions
Conclusion
Get in Touch

Key Takeaways

Sustainable marketing integrates environmental and social responsibility into marketing strategies.
It builds trust and loyalty, differentiates your brand, and attracts eco-conscious customers.
Effective strategies include setting long-term goals, consistent messaging, and full business integration.

What is Sustainable Marketing?

Sustainable marketing promotes environmentally and socially responsible products, practices, and brand values. It goes beyond traditional marketing by focusing on long-term impacts on the planet and society. Sustainable marketing aims to create a positive impact while maintaining profitability and customer satisfaction.

Examples of Sustainable Marketing

Integrating sustainable practices into your marketing strategy can be both impactful and profitable. Here are some examples:

Promoting Eco-Friendly Products
Partnering with Environmental Charities
Transparency in Supply Chains
Third-Party Certifications
Community Investments

Promoting Eco-Friendly Products

Highlighting eco-friendly products can attract environmentally conscious consumers. For instance, companies can emphasize the use of sustainable materials, reduced carbon footprints, or recyclable packaging in their marketing campaigns. This not only showcases a commitment to sustainability but also differentiates the brand from competitors.

Partnering with Environmental Charities

Collaborating with environmental charities can enhance your brand’s reputation and impact. For example, partnering with Tree-Nation to plant trees for every product sold can demonstrate a tangible commitment to sustainability. This not only helps the environment but also engages customers who are passionate about conservation.

Transparency in Supply Chains

Providing clear and transparent information about your supply chains builds trust with consumers.

Brands like Patagonia* and Nike* have set examples by sharing detailed information about their manufacturing processes and working conditions. This transparency reassures customers about the ethical practices behind the products they purchase.

Third-Party Certifications

Obtaining third-party certifications like B Corp can validate your sustainability efforts. These certifications signal to consumers that your company meets high standards of social and environmental performance. For example, 92% of consumers trust brands that are socially responsible or eco-friendly, making certifications a powerful tool for building credibility.

Community Investments

Investing in community projects can strengthen your brand’s relationship with local audiences. Initiatives like sponsoring local environmental cleanups or supporting community gardens show that your company cares about its impact on the community. Such investments can also foster customer loyalty and positive word-of-mouth.

Benefits of Sustainable Marketing

Implementing sustainable marketing strategies offers numerous benefits for your business:

Enhanced Brand Reputation: Demonstrating a commitment to sustainability can improve your brand image and attract positive attention.
Increased Customer Loyalty: Consumers are more likely to remain loyal to brands that align with their values. According to Forbes, 88% of consumers are more likely to be loyal to a company that supports social and environmental causes.
Higher Sales: Sustainable marketing can boost sales.
Competitive Advantage: Sustainable marketing can differentiate your brand from competitors. Research by Accenture shows that companies with high ESG performance enjoy average operating margins that are 3.7 times higher than those of lower ESG performers.
Regulatory Compliance: Adopting sustainable practices ensures compliance with environmental regulations, reducing the risk of legal issues.

Key Considerations for a Successful Sustainable Marketing Strategy

When developing a sustainable marketing strategy, consider the following key elements:

Long-Term Planning
Consistency with Commitment
Integration into the Business

Long-Term Planning

Sustainable marketing requires a long-term vision. Set goals that will have a significant impact over time, such as reducing waste or becoming carbon neutral. This shows a serious commitment to sustainability. For example, a company might aim to be fully sustainable by 2030, demonstrating a dedication to long-term environmental goals.

Consistency with Commitment

Be consistent in your sustainability efforts and communication. For instance, if you introduce eco-friendly packaging, ensure that all product lines follow suit. Consistency helps build trust and credibility with your audience. This approach reassures customers that your commitment to sustainability is genuine.

Integration into the Business

Sustainability should be embedded in your business model. This means integrating eco-friendly practices into every aspect of your operations, from sourcing materials to product development.

This holistic approach ensures that sustainability is not just a marketing tactic but a core value of your business. By making sustainability a core part of your business, you can attract customers who prioritize eco-friendly and socially responsible brands.

Ways to Include Sustainability in Your Next Sales Promotion

Opia is a leader in delivering unique, market-disruptive promotions that offer long-lasting value. We have distributed over £500 million in rewards and use data-driven insights to build sustainability into promotional campaigns.

Go Carbon-Neutral with Production

Brands can use a Gift with Purchase promotions to offset carbon costs from manufacturing and distribution, such as planting trees for every device purchased. This commitment to reducing carbon emissions demonstrates a strong environmental stance.

Use Recycling for an Eco-Friendly Message

Research shows that 46% of consumers want more clarity on recycling old products. By implementing promotions that facilitate ethical recycling and reuse, brands can help consumers make responsible decisions at the end of a product’s lifecycle.

Go Paper- and Plastic-Free in Campaigns

With the US printing billions of coupons and plastic gift cards annually, shifting to digital e-rewards and apps can significantly reduce environmental impact and align with consumer expectations for sustainable practices.

Support the Circular Economy

The circular economy focuses on refurbishing old or unwanted goods instead of discarding them. This approach can cut global carbon emissions by 39% and reduce pressure on resources by 28%, demonstrating a strong commitment to sustainability.

Case Studies: Sustainable Sales Promotions

To illustrate the effectiveness of sustainable marketing, let’s look at a couple of case studies where Opia has helped brands achieve their commercial and environmental goals through innovative sales promotions.

Case Study: Lenovo SMB Trade-In

Partnering with Lenovo, we developed a trade-in promotion offering small and medium businesses 20% cashback on selected Think products when trading in used devices. This campaign included planting a tree for every device traded, resulting in over 1,245 trees planted in the UK. This initiative supported global reforestation goals and enhanced Lenovo’s sustainability credentials.

Case Study: Prénatal Forever Young

To address the issue of discarding used children’s products, Prénatal launched a promotion offering a 30-50% residual value gift card for returned items within 12-18 months. All returned products were managed by Opia’s recycling team, ensuring a sustainable second life for these assets. This promotion gained high-profile recognition and strengthened Prénatal’s brand.

Sales Promotion Explained: Definition, Benefits, Examples and More

For more in-depth insights on how to align sustainability with your sales strategy and effectively meet consumer demands for eco-friendly practices, check out our detailed guide on Aligning Sustainability with Your Sales Strategy. You can also download this comprehensive information in PDF format for easy reference.

Conclusion

Understanding and implementing sustainable marketing is not merely a trend but a fundamental shift in how companies operate and engage with their customers. By adopting sustainable marketing strategies, companies can enhance their market presence, contribute positively to the world, and build a legacy of responsibility and care.

Get in Touch

Opia can help you create innovative and effective sales promotions that align with your sustainability goals. Contact us today to discuss how we can support your business in developing a sustainable marketing strategy and results-driven sales promotions tailored to your business needs. Our team of experts is here to support you every step of the way.

FAQs

Q: What are the key components of a sustainable marketing strategy?
A: Key components include assessing your impact, setting clear goals, engaging stakeholders, communicating transparently, and integrating sustainability into your business strategy.

Q: Why is transparency important in sustainable marketing?
A: Transparency builds credibility and trust with your audience, helping to foster a deeper connection and encourage customer loyalty.

Q: How can Opia help with sustainable marketing and sales promotions?
A: Opia offers a range of solutions, including cashback promotions and buy & try promotions, designed to highlight your commitment to sustainability and reinforce your brand values at every customer touchpoint.

Q: What are some examples of sustainable marketing practices?
A: Examples include donating profits to sustainable causes, sourcing sustainable materials, creating eco-friendly products, social transparency, and charity partnerships.

Q: How can I get started with sustainable marketing?
A: Begin by assessing your current impact, setting clear goals, engaging stakeholders, communicating transparently, and integrating sustainability into your overall business strategy.

Q: What are the benefits of sustainable marketing for businesses?
A: Benefits include enhanced brand reputation, increased customer loyalty, higher sales, competitive advantage, and regulatory compliance.

Sources:

PwC: 2024 Voice of the Consumer Survey: https://www.pwc.com/gx/en/news-room/press-releases/2024/pwc-2024-voice-of-consumer-survey.html
Global Green Marketing Market Insights: Impact of COVID-19 and Future Expectations to 2025: https://www.industryresearch.biz/global-green-market-17514332
Forbes: Corporate social responsibility study: https://www.forbes.com/sites/forbesnycouncil/2018/11/21/do-customers-really-care-about-your-environmental-impact/
Accenture: Delivering on the promise of sustainability Research report: https://www.accenture.com/gb-en/insights/strategy/delivering-promise-sustainability
Deloitte: The Sustainable Consumer 2023 Report: https://www.deloitte.com/uk/en/Industries/consumer/research/sustainable-consumer.html

Cashback Promotions: What Are They and How Do they Work?

Gift with Purchase (GWP) Guide: Meaning & Examples

Sales Promotion Planning: Step-by-Step Guide

* These examples are used for illustrative purposes only, and Opia Limited does not claim ownership of the work referenced in them.

Gift with Purchase Promotions: What Are They and How Do They Work?

In today’s competitive market, consumers are looking for added value in their purchases. Gift with purchase (GWP) promotions provide an attractive incentive, encouraging customers to choose your product over competitors. This blog will delve into what GWP promotions are, how they work, their benefits, key considerations for a successful campaign, and answer frequently asked questions about GWP.

Table of Contents:

Key Takeaways
Gift with Purchase (GWP) Meaning in Marketing
How Do Gift with Purchase Promotions Work?
Benefits of Gift with Purchase Promotions
Key Considerations for a Successful GWP Campaign
Expert Tips for Successful GWP Promotions
Examples of Successful GWP Promotions
The Science of Sales Promotion
How Opia Can Help Your Campaigns
Get in Touch
FAQs about Gift with Purchase Promotions

Key Takeaways

Drives Immediate Sales and Market Share: GWP promotions effectively boost sales and increase market share by offering digital or physical rewards that attract customers and encourage purchases.
Enhances Perceived Product Value: By offering an additional gift, brands can increase the perceived value of their products without reducing the price, maintaining their market position.
Fosters Customer Loyalty: These promotions not only attract new customers but also foster loyalty among existing ones by providing a valuable incentive that encourages repeat purchases.
Provides Valuable Customer Insights: The process of redeeming gifts allows brands to collect important data on customer behaviour and preferences, which can be used to inform future marketing strategies and tailor promotions more effectively.
Offers Strategic Flexibility: GWP promotions can be customised to fit various marketing goals, seasons, or events, providing brands with the flexibility to design campaigns that align with their specific objectives and market conditions.

Gift with Purchase (GWP) Meaning in Marketing

A Gift with Purchase (GWP) promotion is a marketing strategy where customers receive an additional product or service for free when they make a purchase. This strategy leverages the perceived value of the free gift to make the primary product more attractive, encouraging customers to choose it over competing options. GWP promotions can be particularly effective in both consumer and business markets, enhancing the overall value proposition without directly reducing the price of the main product.

How Do Gift with Purchase Promotions Work?

We recommend that Gift with Purchase (GWP) promotions operate through a straightforward claim and redemption process, ensuring the promotion, and claim process are easy to enter with a fast fulfilment process. All of Opia’s promotions are built on our White Label Sales Promotion platform, allowing promotions to be launched simply and easily.. Gift with purchase (GWP) promotions enhance the overall purchasing experience and motivate consumers to make purchases they might otherwise delay. Here’s how they typically work:

1. Offer

The business, brand, or retailer creates a promotion where an additional item is offered for free when customers purchase a qualifying product. This offer is communicated clearly through various marketing channels such as in-store displays, online banners, social media, and email newsletters.

2. Purchase

Customers buy a product that qualifies for the gift with a purchase offer. The qualifying criteria can be based on purchasing a specific product, reaching a certain spending threshold, or buying from a particular product category.

3. Redemption

We recommend running a Post-Purchase Fulfilment: This means that the customer completes a claim, on a redemption website we build, which we validate, and the reward is delivered to the customer shortly after the purchase through an efficient fulfilment process

4. Receive

Customers receive their free gift within a specified SLA period, which is detailed in the Promotion terms and conditions. Efficient delivery and clear communication about the gift status are crucial to ensuring a positive customer experience. Our claim tracker and regular communication ensures customers are informed of their claim status.

By emphasising the added value and enhancing the overall purchasing experience, GWP promotions motivate consumers to make purchases they might otherwise delay, driving immediate sales and increasing customer satisfaction.

Benefits of Gift with Purchase Promotions

1. Increased Sales and Customer Engagement

Gifts with purchase promotions are a powerful tool for driving sales and engaging customers. By offering a free product or service, these promotions make the primary product more attractive, leading to higher sales volumes. Customers are more likely to purchase a product if they receive an additional gift, enhancing the overall value of the deal.

2. Enhancing Perceived Value

GWP promotions increase the perceived value of the primary product without reducing its price. This strategy helps maintain the product’s price integrity and avoids price erosion. The additional gift makes the purchase more appealing and can eliminate price as a barrier in the buying decision process.

3. Fostering Brand Loyalty

GWP promotions significantly enhance brand reputation and customer loyalty. Customers appreciate the added value of a free gift, improving their overall perception of the brand. The process of receiving a gift creates a positive interaction with the brand, fostering loyalty and encouraging repeat purchases.

4. Building Valuable Customer Insights

GWP promotions offer a unique opportunity to gather valuable customer data. By requiring customers to register or provide details to receive their gift, brands can collect information about purchasing habits, preferences, and demographic details. These insights inform future marketing strategies and promotional campaigns.

5. Strategic Flexibility and Creativity

GWP promotions allow brands to design unique and creative campaigns tailored to their specific needs and target market. Whether it’s a seasonal promotion, a product launch, or a strategy to clear end-of-line stock, GWP offers can be customised to align with broader marketing objectives. Conducting market research on the target segments helps to ensure the right gift is selected at the right time, and optimising promotional performance.

6. Efficient Delivery and Customer Experience

In addition to selecting the perfect gift, the timing of its receipt is critical. Ensure that customers’ free gifts are delivered quickly and efficiently, using clear delivery notifications to keep them informed. This enhances the customer experience and increases the perceived value of the promotion.

Key Considerations for a Successful GWP Campaign

1. Set Clear Goals and KPIs

As with any sales and marketing activity, it is essential to establish clear goals and key performance indicators (KPIs) from the outset. These could include boosting sales on a specific product line, clearing end-of-line stock, attracting new customers, or increasing market share. Defining these objectives will help measure the campaign’s success and guide its implementation.

2. Plan Budgets and Manage Risks

Identifying the promotional cost can be challenging, as it depends on customer behaviour and redemption levels. To mitigate risk, consider working with providers who offer risk management solutions, such as fixed fees per unit sold, ensuring profitability regardless of redemption rates.

3. Align with Overall Marketing Strategy

When planning a GWP promotion, integrate it into your overall marketing strategy. Identify key periods where a GWP offer could drive sales, such as during holidays or specific events. Ensure that the promotion complements other marketing efforts and enhances the overall customer journey.

4. Use Creative Concepts and Appropriate Promotional Channels

For a GWP promotion to be successful, it needs to engage your audience with a compelling campaign. Get inventive with your marketing triggers and tie your promotion to relevant themes or events. Use appropriate channels to promote the campaign, including social media, email marketing, and in-store promotions, to maximise reach and impact.

5. Leverage Technology for Campaign Setup

Ensure a high-quality customer experience by using specialist software to manage campaign redemption activities, customer support, and reward fulfilment. A seamless digital process will enhance customer satisfaction and streamline the administrative aspects of the promotion.

Expert Tips for Successful GWP Promotions

Clear and Simple Redemption Process

Ensure the redemption process is straightforward for customers. Provide clear, step-by-step instructions and consider using visual aids like infographics or videos. A hassle-free process enhances customer satisfaction and encourages repeat purchases.

Importance of Tracking

Accurate tracking is essential. Use advanced technology to monitor gift redemptions and customer interactions in real time. This ensures efficient inventory management and distribution and provides valuable data on customer behaviour and redemption rates to inform future promotions.

Building Excitement and Engagement

Create excitement by actively engaging with customers through social media, email newsletters, and in-store displays. Highlight the value and exclusivity of the gift. Regular updates on gift availability and promotion status keep customers interested and engaged.

Select Relevant and Valuable Gifts

Choose gifts that are relevant to your target audience and complement your main product. Conduct market research to understand customer preferences and select gifts that align with their needs, increasing the perceived value of the promotion.

Create Limited-Time Offers

Create a sense of urgency by making your GWP promotion a limited-time offer. Limited availability encourages customers to act quickly, boosting sales and engagement. Highlight the scarcity and exclusivity of the gift to drive immediate purchases and increase the effectiveness of the promotion.

Examples of Successful GWP Promotions

Here are some examples of how we have helped leading brands achieve their sales and marketing goals through expertly crafted GWP promotions.

Free Samsung Galaxy Watch Active with S Series Phones

In the United Kingdom, Samsung aimed to maintain its market presence and drive sales of its flagship S Series phones during the post-Christmas period by offering a free Galaxy Watch Active with each purchase. This approach not only increased sales but also showcased the benefits of the Samsung Watch Active and the Samsung Health app. By leveraging a ‘get active over winter’ message, Samsung avoided costly discounts and enhanced the perceived value of their smartphones.

Opia managed the entire promotion, from creating a market-disruptive concept to handling claim management and customer support. The campaign’s success exceeded expectations, driving high engagement and sales, and reinforcing the brand’s market position.

$100 Streaming Service Credit with LG TV Purchases

In the USA, LG Electronics sought to replicate the success of their previous promotion, which included a Disney+ subscription as a gift with LG TV purchases. With Disney+ unavailable, LG needed an alternative that would deliver similar or better results and keep retailers motivated to promote their products.

Opia designed a new promotion offering a $100 credit towards streaming or gaming services with Prime Video, Hulu, Showtime, Sling, or Xbox for each LG TV purchase. This approach not only increased sales but also created a unique selling point for LG TVs in a competitive market. The promotion generated excitement among consumers and retailers, boosting foot traffic and sales performance.

Sales Promotion Explained: Definition, Benefits, Examples and More

The Science of Sales Promotion

Promotions have evolved from being unpredictable ventures to scientifically driven strategies. Opia leverages years of data insights to advise you on the best promotional tactics based on your category and objectives. This scientific approach allows for predictable and confident planning of your product cycles, ensuring maximum ROI.

See our Science of Sales Promotion report here.

How Opia Can Help Your Campaigns

At Opia, we understand that every brand has unique commercial goals. Our bespoke approach ensures that each promotional idea is tailored to your specific needs, driving action from your target market. By working closely with our clients, we design innovative promotional solutions that offer the best value for you and your customers.

Discover more about how we can increase your sales revenue with our different types of disruptive promotion campaigns. Visit our gift with purchase page for more information.

Get in Touch

Ready to delight your customers and reduce your promotional costs? Get in touch today to discuss how we can start building your customised campaign. At Opia, we take pride in offering end-to-end sales promotion solutions, ensuring a seamless and hassle-free experience for our clients.

Contact us to find out how we can help you achieve your commercial objectives and drive long-term success for your brand.

FAQs about Gift with Purchase Promotions

Q: What does gift with purchase mean?
A: A gift with purchase is a sales promotion strategy where customers receive an additional product or service for free when they make a purchase.

Q: What does GWP stand for in marketing?
A: GWP stands for “Gift with Purchase” in marketing.

Q: What is the gift with purchase trend?
A: The gift with purchase trend involves offering free products or services with a purchase to increase the perceived value and attractiveness of the primary product.

Q: How can gift with purchase promotions benefit brands?
A: GWP promotions drive sales, enhance perceived product value, foster customer loyalty, provide valuable customer insights, and offer strategic flexibility.

Q: How can brands ensure a successful gift with purchase campaign?
A: Brands should set clear goals, plan budgets, align the promotion with their marketing strategy, use creative concepts, and leverage technology for management.

Q: Are gift with purchase promotions better than traditional discounts?
A: GWP promotions increase the perceived value of the primary product without reducing its price, maintaining price integrity and avoiding price erosion.

Q: What are some common pitfalls to avoid in gift with purchase promotions?
A: Common pitfalls include unclear redemption processes, insufficient promotion, and not aligning the promotion with overall marketing strategies. Ensuring clarity, simplicity, and strategic alignment are key to avoiding these issues.

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Cashback Promotions: What Are They and How Do they Work?

Gift with Purchase (GWP) Guide: Meaning & Examples

Sales Promotion Planning: Step-by-Step Guide

Cashback Promotions: What Are They and How Do They Work?

In today’s economic climate, where inflation and the rising cost of living are significant concerns, consumers are increasingly looking at better value for their money rather than just cheaper products. Cashback promotions offer a smart way to provide this value, allowing customers to save money while encouraging purchases.

This blog will delve into what cashback promotions are, how they work, their benefits, key considerations for a successful campaign, and answer frequently asked questions about cashback offers.

Table of Contents:

Key Takeaways
What is a Cashback Promotion?
How Do Cashback Promotions Work?
Benefits of Cashback Promotions
Key Considerations for a Successful Cashback Campaign
Expert Tips for Successful Cashback Promotions
Examples of Successful Cashback Promotions
The Science of Sales Promotion
How Opia Can Help Your Campaigns
Get in Touch
FAQs about Gift with Purchase Promotions

Key Takeaways

Cashback promotions effectively drive immediate sales and increase market share, as demonstrated by successful campaigns that leverage strategic cashback offers to attract customers and encourage purchases.
By offering cashback instead of direct discounts, brands can maintain their product’s price integrity, avoiding the negative impact of price erosion while still providing significant value to customers.
These promotions not only attract new customers but also foster loyalty among existing ones by providing a valuable financial incentive that encourages repeat purchases.
The process of claiming cashback allows brands to collect important data on customer behaviour and preferences, which can be used to inform future marketing strategies and tailor promotions more effectively.
Cashback promotions can be customised to fit various marketing goals, seasons, or events, providing brands with the flexibility to design campaigns that align with their specific objectives and market conditions.

What is a Cashback Promotion?

A cashback promotion is a sales promotions strategy where customers receive a refund or rebate after purchasing a product. Instead of an immediate discount at the point of sale, customers claim the cashback through a specified process. This approach highlights the savings without directly lowering the product’s price, offering value to the customer and maintaining the product’s price integrity.

How Do Cashback Promotions Work?

Cashback promotions operate through a straightforward process that emphasises value and savings, motivating consumers to make purchases they might otherwise delay. Here’s how they typically work:

1. Offer

The business, brand, or retailer creates a promotion where customers can receive a percentage or fixed amount of money back when they purchase a qualifying product. This offer is communicated through various marketing channels such as in-store displays, online banners, social media, and email newsletters.

2. Purchase

Customers buy a product that is eligible for the cashback offer. The qualifying criteria can be based on purchasing a specific product, reaching a certain spending threshold, or buying from a particular product category.

3. Claim

After making the purchase, customers submit their claim through a branded digital microsite. This usually involves:

Filling out a form with their purchase details.
Providing proof of purchase, such as a receipt or invoice.
Submitting any required personal information for verification.

4. Verification

The submitted claims are verified by the brand or a third-party service to ensure that the purchase qualifies for the cashback offer. This step helps prevent fraud and ensures that only eligible claims are processed.

5. Receive

Once the claim is verified, the cashback reward is transferred to the customer. This can be done via various methods, including:

Bank transfer
Prepaid card
Other payment services like PayPal*

By emphasising the value and savings, cashback promotions motivate consumers to make purchases they might otherwise delay, driving immediate sales without eroding the perceived value of the product.

Benefits of Cashback Promotions

1. Increased Sales and Customer Engagement

Cashback promotions are an excellent tool for driving sales and engaging customers. By offering a financial incentive, these promotions can boost the attractiveness of a product, leading to higher sales volumes. Customers are more likely to purchase a product if they know they will receive money back, making the deal feel more valuable.

2. Avoiding Price Erosion

Traditional discounting strategies often lead to price erosion, where the perceived value of a product decreases due to constant price reductions. Cashback promotions, however, maintain the base price, protecting the product’s market value. This approach ensures that the brand does not engage in a detrimental price war with competitors.

3. Enhancing Brand Reputation and Loyalty

Cashback promotions can significantly enhance brand reputation and customer loyalty. Customers appreciate the opportunity to save money, which can improve their overall perception of the brand. Additionally, the process of claiming cashback can create a positive interaction with the brand, fostering loyalty and encouraging repeat purchases.

4. Building Valuable Customer Insights

Cashback promotions offer a unique opportunity to gather valuable customer data. By requiring customers to claim their cashback through an online platform, brands can collect information about their purchasing habits, preferences, and demographic details. These insights can inform future marketing strategies and promotional campaigns.

5. Strategic Flexibility and Creativity

Cashback promotions offer brands the flexibility to design unique and creative campaigns tailored to their specific needs and target market. Whether it’s a seasonal promotion, a product launch, or a strategy to clear end-of-line stock, cashback offers can be customised to align with broader marketing objectives.

Key Considerations for a Successful Cashback Campaign

1. Set Clear Goals and KPIs

Defining these objectives will help measure the campaign’s success and guide its implementation.

2. Plan Budgets and Manage Risks

3. Align with Overall Marketing Strategy

When planning a cashback promotion, integrate it into your overall marketing strategy. Identify key periods where a cashback offer could drive sales, such as during holidays or specific events. Ensure that the promotion complements other marketing efforts and enhances the overall customer journey.

4. Use Creative Concepts and Appropriate Promotional Channels

For a cashback promotion to be successful, it needs to engage your audience with a compelling campaign. Get inventive with your marketing triggers and tie your promotion to relevant themes or events. Use appropriate channels to promote the campaign, including social media, email marketing, and in-store promotions, to maximise reach and impact.

5. Leverage Technology for Campaign Setup

Expert Tips for Successful Cashback Promotions

Clear and Simple Claims Process

Ensuring that the claims process is clear and straightforward is essential for customer satisfaction. Provide step-by-step instructions and make it easy for customers to submit their claims online.

Importance of Tracking

Accurate tracking is crucial for the success of a cashback promotion. Utilise technology to track claims and customer interactions, ensuring transparency and efficiency in the process.

Building Excitement and Engagement

Create excitement around your cashback promotion by keeping customers updated on their progress. For example, in competition-style promotions, regularly update customers on their accumulated cashback and scores to maintain engagement.

Examples of Successful Cashback Promotions

Cashback and Trade-In Promotions to Shift Consumers’ Purchase Habits

In a competitive market, Dell aimed to promote its premium range of PCs by combining cash back incentives with an efficient claims process. This approach not only increased sales by 25% but also ensured a positive customer experience and rapid processing of claims through the Opia CLOUD platform. The success of the back-to-school cashback led Dell to repeat the program during Black Friday, further boosting sales and brand engagement.

The Science of Sales Promotion

See our Science of Sales Promotion report here

How Opia Can Help Your Campaigns

Discover more about how we can increase your sales revenue with our different types of disruptive promotion campaigns. Visit our cashback promotions page for more information.

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* These examples are used for illustrative purposes only, and Opia Limited does not claim ownership of the work referenced in them.

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Sales Promotion Explained: Definition, Benefits & Examples

Sales Promotion Explained: Definition, Benefits and Examples

What are sales promotions?

Sales promotions are marketing activities in which a business creates a compelling reason to buy without a costly impact on a brand’s bottom line compared to discounting strategies.

The intelligence and creativity behind the incentives in our disruptive sales promotion methods remove buyer hesitation and replace it with eagerness and confidence, delivering your brand an enhanced sales uplift, as well as increased customer retention.

How does a sales promotion work?

Sales promotions are tools used in marketing strategies to showcase a product deal, motivating the consumer to buy. By using attractive incentives, good sales promotions, which can be tactical sales promotions or strategic sales promotions, drive demand, leading to an increase in sales, basket size and increase average order values.

Opia works with its clients as strategic promotional partners, understanding their business and seeking insight from their markets and customers’ behaviour to create innovative promotional ideas. By managing the campaign end-to-end, including taking care of any financial exposure when delivering our sales promotion services, Opia ensures mutual value is offered to clients and customers.

Types of sales promotion (with examples)

1. Coupons and Vouchers

Coupons and vouchers offer customers a partial refund or discount on their purchase, increasing the purchase incentive while giving greater control over price positioning. This approach is more cost-effective than traditional discounting. By using cashback promotions, brands can drive purchases while maintaining their price integrity.

Example: A consumer electronics store offers a £50 cashback voucher on all smartphone purchases. Customers receive the cashback after submitting proof of purchase, encouraging them to buy without immediately reducing the product’s price.

2. Trade-In Programs

Trade-in programs encourage customers to exchange their old products for new ones, often with additional benefits like trade-in cashback, trade-in rewards, such as digital gift cards, or physical gifts. This approach generates urgency and helps clear out older inventory. Trade-in promotions also align with sustainability goals by promoting recycling and responsible disposal of old products.

Example: A laptop retailer allows customers to trade-in their old laptops for a £100 discount on a new model, plus an additional £50 gift card. This strategy encourages customers to upgrade their devices sooner and increases sales of new models.

3. Buy & Try Promotions

Buy & Try sales promotions, also known as money back guarantees boost confidence in new product lines and remove barriers to purchase by offering a risk-free, no-obligation trial period. Customers can return their product and quickly obtain a refund during this time, significantly reducing hesitation and encouraging purchases.

This strategy is ideal for increasing the adoption of innovative products or incentivising the purchase of higher-value items.

Example: A tech company offers a 30-day risk-free trial for their new smart home devices. Customers can return the products within the trial period for a full refund if not satisfied. This promotion encourages hesitant customers to try the new technology, leading to higher adoption rates. Buy and Try works best during the consideration phase of purchase and can help to drive brand preference over similar competitor purchases by removing the risk of purchase. As a result, we often see an increase in average unit prices, as customers are encouraged to spend a large percentage of their budgets.

4. Referral and Reward Programs

Referral and reward programs increase brand awareness and customer loyalty by rewarding customers for referring new customers or making repeat purchases. These programs leverage the power of word-of-mouth marketing and can significantly amplify your customer base with minimal cost. Referrals and recommendations from Friends and Family are the most trusted type of recommendation – imagine motivating your loyal install base of customers with incentives to encourage them to recommend your products. Our research shows that it is important that both the person referring and the person buying the product both receive the same reward value.

Example: A subscription service offers a free month of service for every friend referred who signs up. This motivates existing users to promote the service and brings in new customers at a low acquisition cost.

5. Gift with Purchase

Gift with purchase promotions provide an additional product or service for free when customers make a purchase, increasing the perceived value and encouraging higher sales. These gifts can be tailored to customer preferences, enhancing the overall shopping experience and driving loyalty. Ensure that the reward the customer is receiving is one that is useful and desirable to your target customer. This could be a complimentary product, software, services or digital gift cards.

Example: A beauty brand offers a free make-up bag with any purchase over £50. This not only makes the offer more attractive but also encourages customers to spend more to qualify for the gift.

6. Instant Win Promotions

Instant win promotions create excitement and drive immediate purchases by offering customers the chance to win prizes instantly upon purchase. These promotions can significantly boost engagement and repeat purchases, as customers are enticed by the possibility of instant rewards. Since not all customers receive the reward we are able to concentrate the budget into even bigger prizes, which can gain further interest from customers. 1 in 10 or 1 in 20 customers win for free are a popular way to use the concentrated budget to reward some customers and be able to use the powerful free message.

Example: A snack food company runs a campaign where customers enter codes found inside packaging for a chance to win instant prizes like gift cards or exclusive merchandise. This generates buzz and encourages repeat purchases as customers try their luck multiple times.

Other types of sales promotions

Free Trials and Demos: Free trials and demos provide customers with a no-obligation trial period for new products, removing barriers to purchase and boosting confidence in new product lines. These promotions can significantly reduce customer hesitation, making it easier for them to experience the benefits of a new product firsthand.

Competitions and Giveaways: Competitions and giveaways engage customers by encouraging them to participate in challenges or social media activities for a chance to win prizes, creating buzz and rewarding loyal customers.
Flash Sales: Flash sales offer significant discounts for a very limited period, creating a sense of urgency and encouraging quick purchase decisions.
Product Bundles: Product bundles involve selling a set of products together at a discounted rate, offering greater value than purchasing items individually, and often boosting overall sales.
Buy One, Get One Free (BOGOF): BOGOF promotions offer an additional product for free or at a discount when one is purchased, encouraging customers to buy more and share with others.
Early-Bird Specials: Early-bird specials provide discounts or special offers to customers who make a purchase early, incentivising prompt buying and increasing initial sales.
Donations and Charitable Promotions: Donations and charitable promotions dedicate a portion of purchase proceeds to a charitable cause, enhancing brand image and building customer loyalty by supporting important causes.

What are the benefits of sales promotions?

Here’s how sales promotions can benefit your business and drive growth:

1) To increase sales

Increasing sales is a goal that almost every business seeks to achieve, and sales promotions are a highly effective method of accomplishing it. Sales promotions can drive immediate sales and generate revenue for your company.

By offering cashbacks, discounts, time-limited offers, or other incentives, you can attract more customers and encourage them to make purchases. Examples of sales promotion tools, such as ‘buy and try’ or ‘satisfaction guarantee,’ give the customer reassurance to make the purchase.

What are the benefits of sales promotions?

2) To protect margins

Untargeted price discounts are an extremely costly way to drive volume, not all customers need the discount to purchase, some are happy to pay the full price. Thus by focusing your investment on the most engaged and responsive customers, another benefit of sales promotions is achieving similar results at a fraction of the cost.

Sales promotions like ‘cashback,’ ‘instant win,’ or ‘gift with purchase’ strategies heighten the perceived value of the product and make the deal more attractive, creating urgency for short-term results.

3) To introduce products to new markets

Sales promotions can be used to introduce products to new markets where there is product unfamiliarity. By either building confidence in the product or presenting the customer with a compelling incentive, sales promotions remove barriers to the buying decision.

Special deals or introductory offers can entice prospective customers to try a product or service and encourage them to switch to your brand, increasing your customer base.

4) To increase brand awareness

Sales promotions can create buzz and generate attention for your brand. With exciting offers and engaging campaigns, they get people talking, increasing brand visibility and audience reach. Creative sales promotions, such as referral and rewards programs, motivate customers to share the product and the brand with peers to obtain a reward.

Meanwhile, strategies like instant win sales campaigns generate excitement in the market and make your brand part of the conversation.

5) To get ahead of competitors

In today’s competitive climate, gaining the edge over your competitors will help your business grow and succeed. Implementing different types of sales promotion techniques can drive action from your customers by making the deal on your product more appealing than the alternatives on the market.

Sales promotions can differentiate your brand from others in your sector by offering better deals, added value, or attractive incentives, enticing customers away from competitors and increasing your market share.

6) To obtain customer loyalty

Sales promotions are used to retain existing customers and attract new ones. Offering exclusive deals or rewards to your current customers can strengthen their loyalty and encourage repeat purchases. By registering details to obtain promotional rewards, customers connect with your brand and open up future communication opportunities to encourage brand loyalty. Being able to build a list of engaged opt in customer data base brands can maximise long term customer value. This is particularly helpful for brands that do not sell direct, and are at an arm’s length to their customer, as the customer is buying via a retailer.

7) To partner with dealers or retailers

Running a sales promotion campaign that benefits your dealers or retailers, as well as your customers gives your brand an advantage over competitors. For example, a ‘basket boost’ campaign requires customers to purchase accessories from the retailer alongside your product to qualify for cashback rewards.

This approach ensures dealers favour your product, promoting it ahead of other alternatives.

8) To target slow-moving stock

Sales promotions can be designed to target specific product lines or services that are slow-moving, end-of-season, or excess stock that you wish to clear out. By offering discounts or bundle deals, you can quickly sell off surplus stock, freeing up space and capital for new inventory, and encouraging the selling of your latest and greatest products.

9) To upsell and cross-sell

Sales promotions can be an effective strategy to encourage your customers to upgrade their purchases (upselling) or buy complementary products (cross-selling). For example, you can offer bundle deals or incentives for purchasing higher-value items. These promotions will increase the average transaction value and your business’s overall revenue.

10) To build valuable data and customer insights

Sales promotions provide an excellent opportunity to gather customer data and insights. Often, they require participating customers to provide their details or engage in specific actions, such as signing up for newsletters or filling out surveys. This requirement enables your business to collect valuable data on your customers, their preferences, and buying behaviour, which can inform future marketing efforts and personalised targeting.

Successful examples of sales promotion

Increasing Sales

Dell’s Small Business Cashback Promotion

Dell aimed to boost sales on Dell.com during key times of the year. Opia created a cashback promotion for a range of Dell products, offering customers $100 to $200 cashback. Customers could claim their cashback online upon product dispatch, receiving a Dell-branded digital VISA prepaid card.

This promotion not only increased sales during critical periods but also strengthened brand loyalty, demonstrating the power of Cashback Promotions.

Lenovo’s Environmental Trade-In Campaign

To highlight its commitment to sustainability, Lenovo partnered with Opia for an Earth Day trade-in campaign. Small and medium businesses received 20% cashback on selected Think laptops and PCs when trading in old devices. For each trade-in, Lenovo planted a tree in the UK, offset at least one tonne of CO2 emissions in the Amazon rainforest, and ensured the devices were refurbished, reused, or recycled with zero going to landfill.

This campaign promoted sustainability while boosting sales, illustrating the benefits of Trade-In Promotions.

Lenovo's Environmental Trade-In Campaign

Dell’s Premium Range Promotion

During the back-to-school and Black Friday periods in France, Dell sought to increase market share in the premium PC segment. Opia created a multi-tiered cashback promotion on Dell’s XPS, Alienware, and Inspiron product families. The promotion offered up to €200 cashback, driving a 25% increase in sales in the XPS and Alienware ranges.

This successful approach also protected Dell’s price position, demonstrating the effectiveness of Cashback Promotions.

Conn’s HomePlus “Get Your Tax Back” Campaign

Conn’s HomePlus aimed to attract customers with a unique promotion. Opia designed a “Get Your Tax Back” campaign, allowing customers to claim the value of state sales tax on purchases over a certain amount. The promotion worked both in stores and online, and its success led to variations like “Ca$hBacktober” and “Memorial Day Mattress Tax Back.”

This initiative showcased the versatility and appeal of Instant Wins.

Building Confidence

Samsung’s Buy & Try Promotion

Samsung aimed to drive the adoption of its premium Galaxy Z Series foldable phones. Opia developed a Buy & Try campaign offering a 60-day trial period. Customers could return the phones if unsatisfied, reducing buyer hesitation.

The promotion ran in ten countries and supported the launch of new models, effectively driving sales and customer acquisition through Buy & Try Promotions.

Enhancing Customer Loyalty

Samsung Wallet Rewards Customer Loyalty with Cinema Vouchers

Samsung sought to reward its loyal customers and promote the relaunch of its mobile payment app, Samsung Wallet. They collaborated with Opia to design a rewards promotion where users could win cinema vouchers. Participants registered in their Samsung Wallet App and entered daily draws by making payments with Samsung Pay.

This month-long promotion, which offered over 9,500 cinema vouchers, successfully engaged customers and reinforced Samsung Wallet’s new capabilities, showcasing the effectiveness of Instant Win Promotions.

LG’s Streaming Service Promotion

LG sought to motivate retail partners and boost sales for its Home Entertainment products. Opia created a promotion offering a $100 credit for streaming or gaming services with the purchase of an LG TV.

This gift with purchase generated excitement and increased store traffic, highlighting the impact of Gift with Purchase promotions.

Driving Engagement

Samsung Watch Promotion

Between the Christmas and New Year period, Samsung wanted to maintain their brand presence and drive sales of their flagship S Series phones. Opia created a promotion offering a free Galaxy Watch Active with the purchase of an S Series phone. This campaign used health and sports technology to promote the phones, driving high levels of engagement and showcasing the integration between Samsung’s smartphones and wearables.

This demonstrates the effectiveness of Gift with Purchase promotions.

Howard’s Tax Back Promotional Event

Howard’s, a leading appliance retailer, sought to engage customers during the busy July 4th period. Opia created a ‘Tax Back’ promotion, allowing customers to claim the value of state sales tax on purchases over $300. This promotion was available in-store and online, with rewards offered via PayPal or physically.

This redemption promotion saved Howard’s over 46% compared to traditional discounting methods, illustrating the impact of Instant Wins.

Tips for building successful sales promotions

Set clear goals and KPIs

Establish specific, measurable objectives for your promotion, such as boosting sales of a particular product line, clearing out end-of-season stock, or attracting new customers. Clear KPIs will help you measure the success and guide the implementation of your campaign.

Understand your target audience

Tailor your promotions to meet the needs and preferences of your target market. Use customer data and insights to design offers that resonate with your audience, whether it’s through discounts, cashback, or free trials.

Leverage technology for seamless execution

Utilise digital platforms to manage your promotions efficiently. Ensure that the claims process is straightforward, tracking is accurate, and customer interactions are seamless. Platforms like Opia’s CLOUD can facilitate a smooth process from purchase to reward.

Create a sense of urgency

Incorporate time-limited offers to encourage quick decision-making and purchasing. Urgency can drive immediate action, increasing the effectiveness of your promotion and boosting short-term sales.

Offer value without eroding prices

Use promotions that maintain your product’s price integrity, such as cashback offers or buy & try campaigns. These strategies provide value to customers while preserving your brand’s perceived value and avoiding price wars.

A bespoke approach to your brand’s requirements

Whatever commercial goals your business has, Opia will tailor a promotional idea to be unique to your needs and innovative to drive action from your target market. By working closely with our clients, we design bespoke promotional solutions that offer the best value for you and your customers.

Discover more about how we can increase your sales revenue with our different types of disruptive sales promotion solutions or get in touch with us to see how we can help you.

Get in touch

Six key questions to ask about your next sales promotion

Discounting has its place for any brand within the annual sales promo calendar but it’s hardly a new, creative, and innovative idea to drive consumer spending.

Sure, you could just take the easy and risk-free route and slash a price.

But right now, retailers are competing fiercely for every penny of consumer discretionary spend, so it pays to stand out – and that’s why learning to leverage the Science of Sales Promotion will deliver significant return on investment.

Below are six questions you should ask yourself before launching a new discount-based sales incentive.

And if you like what you read, you can find even more tips by downloading our Science of Sales Promotion report, packed with ways for your brand to profit.

What pays better than discounting?

There are always plenty of variables and unknowns across every single promotion you will offer, but overall, there is evidence to show why smarter incentives win out over discounts.

From the wide range of historic promotions we’ve run for brands at Opia, 40-80% of consumers say the incentive influenced their buying decision with a third to a massive 70% saying they switched brand to take advantage of a promo.

When will the time of year make the biggest impact?

Whether it’s a seasonal promotion or an incentive planned around a sporting tournament such as the Super Bowl, FIFA World Cup, or Six Nations Rugby, there are tonnes of points throughout the year to take advantage of the Science of Sales Promotion.

Cashback during short-term tournaments can cost you 20-40% less than discounting while money-off purchases have proved to work extremely well at times of peak demand, for instance, Back to School.

How will we tempt consumers to trust us without cutting prices?

Offering people the chance to experience your product in their own home can prove extremely effective. It emphasises the faith you have in that product and can be run for a set period such as 30, 60, or 90 days. You can also offer these consumers a gift or cashback if they keep it – a combo that is far more enticing than a discount at point-of-sale.

Conversions are generally very high here with one promo run by Opia showing 34% of buyers wouldn’t have purchased had it not been for this incentive type.

Who will our smarter promos benefit the most?

Dare we say it, but everyone… from the consumer to category managers to shopfloor salespeople at retailers.

Having a clever and carefully designed promo that’s simple to explain and easy to demonstrate will convert increased consumer take-up vs discounts, empower sales staff to confidently push your brand, and save you 20-60% compared to traditional point-of-sale activations.

Where do the main risks come from?

Working with a trusted partner such as Opia can massively mitigate any risks. For instance, we’ve got a dedicated AI team on hand alongside fraud experts to identify threats to your promos and deter those trying to take advantage.

Other common worries might include the risk of costs spiralling out of control if your smarter promo goes extremely well. But at Opia we are experts at securing the right level of insurance – so if product flies off the shelf, the cost to your brand never goes above a certain level.

Why are smarter promos so effective vs discounting?

To put it simply, this comes down to data. Imaginative incentives don’t have to be a risk. They can be powered by historic data and analysis both from your brand and from Opia’s wealth of experience.

Knowledge + insight = inventiveness + predicted engagement – and these types of promotions give you the opportunity to gain even more data points from consumers to use in the future. Discounts don’t and can’t do that!

At Opia, we have a very particular set of skills, developed over a long period of time to reward your customers, and earn you more money.

Creative and innovative campaigns can be deployed with the speed and ease of a discount – and managed with exceptional levels of dedication and meticulous attention to detail.

To find out more, and for loads more tips and advice on the Science of Sales Promotion to boost your brand’s bottom line, download our report right here.

Three ways to seize sales success through smarter promotions

It’s a tough time to be a category manager.

Consumers are tightening their belts – focusing mainly on their daily or weekly essentials – and this is leaving retailers with a much harder job of capturing whatever discretionary spend is left.

Most deals are usually built around slashing prices, but this will never be the formula for long-term success. Sure, in the short-term discounting can boost your stagnant sales and help shift some end-of-line stock.

It’s simple. It’s fast. It’s proven.

However, all too often, it just becomes a race to the bottom.

So, what’s the better answer to incentivise consumer behaviour and boost sales?

Well, in today’s data-driven, insight-rich world of sales, it’s time for a calculated risk – one that will grab your chance to see the same sales levels as a discount programme, but at a lower total cost and with a juicier margin.

By harnessing the Science of Sales Promotion, you can deliver a range of smart promo options that cut straight through to consumers.

Here we’ll run you through three to think about – and you can find out more by downloading our Science of Sales Promotion report, packed with tips on ways for your brand to profit even further.

Cashing in with cashback

Cash can be the greatest of incentives – it’s an offer people can’t refuse – but cashback comes in many forms, from prepaid cards, transfer via PayPal*, or using gift cards.

These promotions can be run with ease by a trusted partner through multichannel marketing and then managed across secure digital platforms.

And compared to traditional discounting, they work… and they work well. As your sales rise, cashback will cost you less: typically, between 20% and 40% less.

Top Tip: When offering cashback, keep the relative generosity of the offer to below 30% of the price to ensure costs are covered.

Grow your sales with gifting

Who doesn’t love a freebie? A great giveaway will always catch a customer’s attention and ensure they feel rewarded by your brand.

It will often encourage an impulse purchase too, one they’d not previous considered. For example, a new smartphone because it comes with a free telly or a new telly because it comes with a free pair of high-end headphones.

Freebies don’t have to be ‘product’. They can also take the form of credits for streaming platforms, cinema tickets, or VIP experiences.

Top Tip: Gifting associated products can be highly effective when used for a flagship product launch to generate buzz.

Triumphing through trade-in

Consumers are now far more educated on the effects of their purchases on the planet. In fact, 87% of Gen Zs believe companies must lead on the environment.

But finding the best way to recycle your old electrical items can be a massive and time-consuming pain.

Trade-in offers your brand the opportunity to take that chore off of the consumer’s shoulders and ensures you can tie a promo to your own ESG goals.

From cashback to money off a new product to cash + carbon offsetting, the trade-in options are diverse, giving you the best chance to capture extra sales.

Top Tip: Trade-in offers must make more sense financially for the consumer than simply selling an old device.

At Opia, we have a very particular set of skills, developed over a long period of time to reward your customers, and earn you more money.

Creative and innovative campaigns can be deployed with the speed and ease of a discount – and managed with exceptional levels of dedication and meticulous attention to detail.

To find out more, and for loads more tips and advice on the Science of Sales Promotion to boost your brand’s bottom line, download our report right here.

* These examples are used for illustrative purposes only, and Opia Limited does not claim ownership of the work referenced in them.

The Science of Sales Promotion

Aligning Sustainability with your Sales Strategy