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.