6 Types Of Christmas Promotions That Work
Christmas is almost here!
As a business owner, this is THE BEST time of the year to capture as much sales as you can from ready-to-spend, eager holiday shoppers!
For many merchants, 20 to 40 percent of their yearly sales for small and mid-sized retailers take place within the last two months of the year.
If your sales haven’t met your expectations for the year, now is NOT the time to give up. Bring your A-game to plan out your year-end strategy and smash that sales target like a watermelon!
During this promotional period, planning ahead is important to ensure your discount offers are attractive enough to compete with other retailers and yet, does not hurt your profit margin. To help you overcome this, we’ve compiled a list of 6 promotion ideas you can run this festive season to make sure you set a higher total value order requirement.
Trust us, it’s a win-win situation. When planned well, you get to sit back and watch all the sales pour in while your slow-moving stock clears out. For your customers, they will get this amazing satisfaction that they are getting a very good deal with the promotion and will buy more to enjoy the discount.
Here are the 6 types of promotions you can run this festive season:
1. 25% OFF Storewide/Sitewide
Run a “25% OFF Sitewide, with a minimum spend of RM200“. Be sure to set your preferred discount and minimum spend based on your margin so your business does not make any losses. Remember, take care of your bottom line.
2. Tiered Promotion
Buy 2, Get 20% OFF
Buy 3, Get 30% OFF
This works like magic, every time! Offer a higher discount on each tier as the minimum quantity increases. This creates an illusion that when customers BUY MORE, they SAVE MORE. Now, you no longer need to worry about overall order value.
3. Buy 1, Free 1
To customers, this gives the perception that they’re getting almost a 50% OFF. However, this sneaky tactic works better than that! Instead of offering half price for an item, the “Buy 1 Free 1” method allows you to sell off 2 items at 1 go!
Are you thinking about that slow-moving stock sitting in your inventory room that you can’t wait to get rid off? Make this your go-to promotion tactic and wave goodbye to them. Easy peasy.
4. Product Bundle
Bundle your products together to make the overall package more presentable and value for money. Most importantly, it helps you get your stocks moving more quickly.
To ensure sales success, here are two options you can try:
– Create a bundle with all of your best products and offer a significant discount.
– Create a bundle with your slow-moving products at a low price. This also helps to move the stock off the shelf speedily.
Customers LOVE surprises!
For example: If you own a fashion company and you are targeting bargain hunters to clear your older stocks, you can do a Mystery Bundle of 5 products for RM150. Because this is such a great bargain (it’s just RM30 EACH!), customers would be tempted to purchase although they do not know what they’re getting. This tactic could also work with your loyal customers as they as familiar with the quality of your products.
5. Free Gifts
Give a gift! If you are a luxury brand and brand image is a concern when it comes to giving discounts, you can opt to offer your customers a gift with their purchase. Incorporate Christmas related gifts – socks, bath products, personalised accessories, pouches or gift cards.
You can always offer a lower value item or a free sample of a product you offer in your store as free gift. The best part – it serves as tester for your customers so if they like what they receive, they might come back for more!
6. Gift Cards
‘Tis the season of giving. Offer your customer a RM15 OFF gift card for their next order. Alternatively, you can also encourage them to purchase gift cards for their friends (they could be a potential customer!). For instance, “get additional 10% off your order with a gift card purchase”.
Too Many Options? Can’t Decide?
You can experiment with different types of promotions to see which ones work better for you. In fact, many companies run 12 Days Of Deals as a Christmas Campaign, in which they feature different product categories on sale daily. What we love about this is that it keeps the customers excited to find out what items will be featured next.
Once you’re set with the promotions, what’s next?
How To Run Promotions Effectively?
- Make use of Facebook and Instagram ads. Reach more people that are around your shop area and attract more new customers.
- Run giveaways & contests on social media. Utilise Facebook Shares, Instagram Stories & Post Comments creatively to engage with your audience. These would help to increase your social media engagement, attract more brand followers and raise brand awareness. Once they land on your profile page, they are likely to spot your ongoing promotions too!
- Newsletters! Email is one of the most effective ways to inform your customers about your promotion. You can include more details and teasers to pique their interest.
- Blast out SMS messages to your existing customer database. If your customers are not checking their email, it’s likely that they will check their SMS. Notify them about your promotions and invite them to visit your store or website.
- Print out foam boards or banners in your physical store. This is a useful tactic to attract passersby to walk into your store. If you have an online store, be sure to update your front page banner with the promotion details too.
What promotions have worked well for you in the past?
Let us know in the comments below!