Jacob Morrow

2024-05-16 10:53:35

7282 Views, 5 min read

Sales promotion is the most effective marketing strategy for immediate response and sales increase. However, it can be challenging at the same time if not planned carefully. You need to consider several key strategies before launching your sales promotion. This blog will introduce you to some important sales promotion examples and strategies to better understand how this marketing tactic works.  

What is a Sales Promotion?

Businesses often use sales promotion to increase product demand by sparking customers’ interest. This marketing strategy utilizes temporary offers or short-term marketing campaigns to boost sales. The objective is to trigger customer response, specifically for a shorter period, to reach a certain sales goal. Brands usually announce some discount offer or other incentives to encourage customer response.

A well-crafted sales promotion can help in building customer loyalty and brand awareness. Although the primary purpose is to increase sales, businesses can enjoy certain other perks by working out an effective sales promotion strategy. These promotional campaigns may aim at increasing immediate sales, but long-term marketing goals can also be achieved by taking a strategic approach.

The Benefits and Cons of Sales Promotions

Just like other marketing strategies, sales promotions also come with particular upsides and downsides. Here are some pros and cons of this marketing approach, which must be considered while designing a sales promotion strategy for your brand.


Boosting Sales – It is humanely natural that the frequency of a certain action can be increased by providing an incentive for it. The same is the case with types of sales promotion, people will buy more of the product when they get an incentive either in the form of a discounted price or a “buy one get one free” offer. This will ultimately increase your sales, leading to increased revenue.

Clearing Inventory—Businesses thrive by offering the latest and most up-to-date products. Therefore, brands must clear their previous stock or inventory before launching new product collections. Different types of sales promotions can help clear stocks by triggering buyer behavior.

Grabbing & Retaining New Customers—It can attract new customers by providing them with an opportunity to try products from a brand they don’t normally use. So, if brands deliver high-quality products and services at affordable prices, they will likely retain these new customers.


Devalue Brand—Sales promotion campaigns can sometimes devalue brands, as customers might perceive products as low quality. If the brand continues to offer such discounts more frequently, that's a completely natural response from the public. So, there must be a good balance between both.

Lower Profit Margin – Such promotional offers may drain your company’s profit margin by elevating sales beyond an expected level. Moreover, customers can habitually wait for such offers to make their purchases. This will ultimately lead to lower sales on normal days and exponential sales during promotional campaigns.

Considering the pros and cons of sales promotion and the types of sales promotion, marketing strategy should be carefully crafted. The marketing team should monitor customer response during the promotional campaigns and develop their next strategy accordingly.

12 Types of Sales Promotion and Examples of Sales Promotion

Businesses use different types of sales promotion to boost their sales and attract new customers. The choice of sales promotion tactic depends on the type of product/service offered, budget, expected sales, duration of the promotion campaign, and other related factors. However, these are some sales promotion examples commonly employed by brands.

1. Discount Offers

This is the most widely used type of sales promotion which involves offering a certain discount on products and services. You might have seen a 20% discount offer on a retail brand’s entire stock or selected items. That’s an example of a discount offer.


2. Product Bundling

Product bundling is a standard marketing tactic for grocery products. You might have purchased a soap bundle of three with the label “Save $1.” That’s what a product bundle looks like. By bundling products, people are encouraged to purchase more.


3. Sampling

It is a great idea to distribute free product samples to customers so they can test the quality before making an actual purchase. This can significantly increase sales, especially when launching a new product.


4. Giveaways

This involves offering giveaways for participation in a contest or competition. Brands usually target their social media handles for conducting such contests. By sharing the brand’s post with three users, a person will be registered for a lucky draw. This is how a giveaway contest works. Along with a sales increase, you can enjoy the perk of greater social media reach from this sales promotion.  


5. Referral Programs

You can incentivize your existing customers to refer their friends and family. For example, you can offer “10% cashback on your next purchase if you refer a friend.” This offers a good opportunity to increase sales and spread brand outreach.  


6. BOGOF Deals

If you plan to clear your previous stocks before a new collection launch, a “Buy One, Get One Free” deal is one of the most suitable sales promotion examples. This will increase your sales and brand awareness, as people mostly purchase an extra item to gift their loved ones.


7. Trade-In Offers

This is a less common sales promotion tactic but can boost your sales like a miracle. You can offer a discount on purchasing a new product if a customer brings an old one. If you’re dealing in recycled products, it is even more beneficial.


8. Flash Sales

By offering a limited-time discount on certain products, you can achieve an immediate boost in sales. Flash sales create urgency and encourage customers to purchase their favorite items at a discount.


9. Free Shipping

Running short on budget, and can’t afford to offer a good discount? Well, in that case, free shipping is the ideal sales promotion tactic for you. This involves offering free shipping to your customers, and you’ll observe an increase in sales during that period.


10. Charitable Donations

You might consider donating a percentage of your sale for a charitable purpose. This will improve your brand image and increase sales as customers will feel emotionally satisfied about their purchase.


11. First-time Purchase Discounts

Every business wants to retain its customers for years, and this can be achieved by incentivizing them on their first purchase. This involves sending discount coupons in promotional emails.


12. Upsell

This sales promotion tactic involves offering customers a smaller or less expensive product. Once they’re satisfied with the quality of their purchase, you can offer them an upgrade to an improved product. However, to make beneficial suggestions, you need to monitor customers’ buyer behavior closely.


5 Strategies on How to Make Your Sales Promotion Effective

Offering a mere discount or giveaway is not enough to increase sales. You need a thorough and well-crafted marketing strategy to make your sales promotion successful. Here are a few strategies that you can consider to level up your marketing game in 2024.

💡 Observing your Customers’ Behavior

The first step in planning a sales promotion is to understand your customers well. You can identify the trigger points of your customers if you have an idea of their preferences. Therefore, a thorough analysis of customer’s past behavior with your brand can help you offer exactly what a customer expects from you.

Observing customer behavior can be a tough job. However, it can be much easier if you already use EngageLab’s message services. By analyzing customers’ responses to push notifications, emails, or transactional SMS, you can better understand your customers' interests.  

💡 Creating Urgency to Purchase

The objective of a sales promotion is to get an immediate rise in sales. So, it’s always a good approach to create an urgency to purchase. Whatever type of sales promotion you’re using, set a time limit for it, and you’ll observe a better response from your target group.

Setting a time limit is useless if your customers are unaware of these limited-time offers. You need to send frequent reminders to your customers which seems unrealistic. However, with EngageLab’s push notifications, you can keep your customers updated all the time.


💡 Leveraging Multiple Promotional Channels

To run an effective sales promotion campaign, you need to increase the reach of your promotional activities. The more you advertise your promotional offers, the more effective your sales promotion will be.

You can significantly increase the reach of your marketing content by seeking services from a reputable customer engagement platform. And when it comes to customer engagement, there can’t be a better option than EngageLab as it allows you to send promotional messages, emails, and push notifications across multiple channels.

💡 Tracking & Monitoring Campaign

Continuously evaluating customer behavior and response during sales promotion can help you identify loopholes and improve them in upcoming campaigns. You can even make small adjustments to the currently running promotion.

EngageLab can be your partner in tracking customer response. By providing useful analytics like open rates, clicks, and conversions, EngageLab can assist you in keeping a track record of your promotional campaigns.


💡 Providing Value to Customers

The scope of sales promotion should be far beyond mere sales. These promotions offer a great opportunity to improve your brand reputation and gain customer trust. Therefore, your promotional offer must add some value to your customers. If it’s just for increasing the company’s profit, then it will lead to failure and affect the brand’s reputation.

How EngageLab can Drive Your Sales Promotion?

Whether it’s a sales promotion or any other marketing activity, the first step is to reach potential customers that can lead to sales conversions. Reaching a wider audience can be tiresome, but that’s also not a problem if you have a reliable marketing services provider. However, it can be difficult to choose from so many options available in the market. Let us introduce you to EngageLab!


EngageLab comes up with industry-leading solutions for your marketing problems. With a diverse product range, you can choose the best service for your marketing needs. Here’s what makes EngageLab stand out from others:

Omnichannel Customer Reach – EngageLab provides comprehensive services where you can send promotional messages, emails, and push notifications across multiple channels. So, you can manage all channels through a single platform.


Easy IntegrationEngageLab's interface and API design are so easy to use that even beginners can run their marketing campaigns. Complete documentation and guidelines are provided for accessing marketing services.


Key Insights & Analytics—EngageLab provides important analytics to monitor the performance of your marketing campaign. This allows you to make necessary modifications to achieve better results.


Sum Up!

Sales promotion can be an effective way to increase sales and reach potential customers. However, to fully take advantage of this marketing tactic, a careful and strategic approach is required. So, the type of sales promotion should be selected wisely.

Ready to level up your marketing game with EngageLab? Avail a free trial today by signing up in a few simple steps!