Loyalty Program

Difference Between Online and Offline Loyalty Programs

Retailers appeal to customers’ buying habits with incentives in order to outsell their competition. This trend has been in practice since the beginning of time. Over years, retail has continued to evolve, and following the birth of ecommerce in the early 1990s, loyalty strategies have made a migration to the digital platforms with definite motives. With all of the online and offline rewards programs emerging every passing moment, one might begin to wonder where exactly the differences lay between them. A detailed study of both the platforms leads to a clearer opinion about the debate that has raised quite a few opinions.

Offline Loyalty Programs:

Location has always held significant consideration on its part, for customers who choose to purchase products in-store, rather than an online purchase. However, additional expenses may be associated with visiting a particular store to purchase a certain product. Although, customers tend to come back on their own simply due to the close proximity to a specific store, retailers must still be aiming to appeal to their customers’ best interests with their loyalty programs. Following are some of the strategies tailored to benefit the offline sales environment:

1. Social Sharing:

High chances prevail that customers will browse through physical stores through social networks before the purchase. The current generation of customers, in particular, spend a considerable amount of time on mobile devices, checking into social media accounts and with such exposure, harnessing social sharing power is a genius way to entice customers to shop with you. Rewarding customers for sharing their experiences with the products on platforms like Twitter and Instagram gives retailers the opportunity to create brand influencers while incorporating their brand into the everyday social fabric of their customer base.

2. VIP Tiers;

VIP tiers allow retailers to acknowledge and evaluate their best customer base with exclusive benefits and rewards. Simply effective at increasing customer engagement, VIP tiered programs give the the customers an opportunity to earn more, which in turn encourages them to spend more. VIP programs have emerged as an excellent solution for brick-and-mortar retailers, because once a customer is committed, they are more likely to engage themselves with a specific store. It’s the perfect example of how exclusive benefits, as opposed to discounts, set a brand apart from the herd.

Online Loyalty Programs

One of the most significant reasons people prefer to shop online is discount prices, which doesn’t come as a surprise given the fact that many such people don’t even have a savings account. Online shopping has taken the commercial merchants by storm, and is soon to dominate, which raises a need for loyalty programs to ensure a customer base. With the facility to shop around and buy at the lowest price in a matter of seconds, there are many ways ecommerce merchants can work to keep their customers hooked.

1. VIP Tiers:

VIP Tiers is a perfect example of some of the strategies which can be incorporated in both online and offline platforms. Tiers are especially known to industries like supplements and cosmetics because they have intense levels of competition. Brands that reward customer loyalty with benefits and transactional rewards are more appealing in a more obvious sense. Offering customers access to exclusive events or product launches are some of the many ways that retailers can give recognition to their VIP customers, considering that these loyal customers are responsible for a majority of their business.

2. Engagement Touch Points:

One must provide the customers with ways to engage outside of the shopping cart if one wishes to make his online brand stand out. With a rising trend of using smartphones for all manner of online activity, people are searching for experiences that complement their lifestyle. Referral programs are an excellent way to encourage customers to engage with one’s brand throughout their everyday necessities, and can be seen as the evolution of the old school reward systems.

No matter what you’re selling, where’re you’re selling; whether it’s online or offline, a loyalty program is a proven way to acquire a huge customer base. Through exclusive rewards, beneficiary initiatives, and social awareness, one can treat customers to a lifestyle and loyalty experience unlike anywhere else, making one’s brand a priority for them, every time they go shopping.

The Future of Loyalty Programs

The success of an idea depends on how adaptable it is to the current needs of the system. The ability to amend brand strategies is the key to longevity irrespective of the industry, including the wide domain of customer loyalty. In recent surveys, a massive 65% of the CMO council agreed upon the significance of investing in loyalty strategies. A sudden heat is expected in the arena of loyalty, sooner rather than later. A brief study of the Future Loyalty programs in the following section suggests that the coming times will be of huge significance and the right investments might ensure a smooth systematic function.

The future, in case of loyalty programs, is set to drift away from pushing marketing strategies on customers, onto a more promising approach of making the experience a little easier for the customer. With an approach as simple as deploying loyalty program to make customers’ lives easier, or providing an exclusive loyalty program that rewards via a customisable experience based on individual customers’ needs, the future has taken a turn for good. Retailers, who hope to succeed, must possess the content, a strategy and insightful ideas that can be seeded in conversation with customers to figure out their needs and compliment them in a more suitable manner.

A trend of feedback loops with personalisation and targeting engines is set to present itself to the market. The power of a positive review will dominate the centre stage – retailers and brands will be pushing to engage in conversations, allowing them to progressively learn and develop an unrivalled experience for their customers. Loyalty programs that contextualise all relevant data points shall emerge as victors– delivering push marketing messages and lucrative offers to drive customers into the stores or onto the e-commerce platforms is not going to be enough. Successful retailers and brands must know and comprehend what their customers tend to and analyse the data to fuel targeted conversations that enable the loyal customers to open up about their experiences. Negative criticism is set to trend with a strong, reassuring vibe attached to it.

Loyalty programs, if aimed for huge success, need to continue to support an overall experience of the brand, and should be designed with customers, taking in consideration the minutest of details. The retailers and brands need to embrace the need of the hour; they need to give up control. The real power of loyalty is to enable customers to voice an opinion; loyalty programs will increasingly align themselves to the customer experience side of businesses and emerge as a channel for developing connections with loyal customers on a personal level.

The future of loyalty programs needs a retailer or a brand to enable a broader range of interaction with their customers. Personalisation and customisation, are therefore the keys to ensure the right elements of customer experience are delivered to the loyal customers. They generate a high value of engagement and equally, retailers need to create opportunities through their loyalty programs for customers to engage with their interests.

Loyalty programs have the ability to connect the dots of data from across the multichannel experiences and recognise the areas to be emphasized upon. Mining the data to create these opportunities to strengthen and improve one’s service is an invaluable and relatively untapped resource for retailers. With such advancements and a rising need to acquire the customer base, the future of loyalty programs, it seems, is infinitely bright and headed towards a remarkable journey.

Customer Loyalty Programs that Add Value

Imagine you had been given a loyalty card when you visited your favourite food chain and have been advised that every time you returned to have a meal you will be stamped on their card and upon the completion of this card, you would get a free meal. I bet you’ve experienced that too: you buy something and sooner or later after the purchase either immediately or within a few days or perhaps weeks you get hold of a proposal from the store to come again and make another purchase which is free.

This is a motivating factor. Lots of huge retailers do this kind of thing because it works, and because they understand something that many small commercial enterprise owners don’t: it’s an awful lot less complicated to turn an existing purchaser into a repeat patron than it’s miles to win other new customer completely.

The probability of promoting to a brand new purchaser is 5 to 20% however to an existing customer is 60 to 70%. Make a purchaser sense importance, you’ll by no means have a product or price gain once more, they can be effortlessly duplicated, but a robust customer support tradition can’t be copied.

Here are few amazing examples of loyalty programmes conducted by the means of loyalty management companies

Companies provide purchaser incentives for giving splendid reviews. These opinions make them feel important and additionally boom your advertising. Local search directories will let you share coupons and discounts on their web sites. Special coding on Facebook can let you percentage special offers for fanatics only. You can provide a giveaway for individuals who upload a video review. The possibilities are limitless, and the better your provide, the more reviews you’re probably to receive.

Do you sell a product which very few have heard of? Then go the Maca Team’s loyalty program way. Ask your client’s to give you a few referrals and earn some more money or a new item. A loyalty program offers them an incentive to now not simply refer their buddies, however additionally converts those new customers into dependable customers rather than a one time transaction.

Referrals are an critical component of any food and beverage loyalty rewards program!

The Oberoi Group is said to have the best luxury resorts in India. Oberoi Advantage is very different to different loyalty programs given by hotels in that there may be no accrual and redemption of points. Instead, the advantage is straightforward and attractive live for five nights at Oberoi residences throughout India and Dubai, and acquire a unfastened stay or a room upgrade. This can also be redeemed at homes in Indonesia, Mauritius and Egypt.

In addition to extra miles, Virgin Atlantic’s Flying Club allows individuals to earn tier elements. The membership inducts people on the Club Red tier, then bumps them as much as Club Silver after which Club Gold. The secret’s to offer benefits in the early levels to hook the client into coming back. Once they do, they’ll realize that “gold” reputation isn’t not possible, and gives simply cool advantages.

Like a few loyalty programmes however do no longer understand how to put into effect, there are loyalty rewards companies, who simply would be more than happy to help you.

6 Steps to an Effective Customer Loyalty Program

A loyalty and rewards program offers the possibility to solidify existing relationships, initiate new ones and convert your one-time visitors, consumers and prospects into repeat business and long-time contributors. Implementing a successful customer loyalty solutions is all in the process.

Nearly 60% of worldwide purchasers stated that loyalty programs were available where they shopped, and of those, a whopping 84% stated they have been more likely to visit these ones again.

Here are five steps you need to take as a way to build an effective loyalty program, and why they’re so essential to your achievement.

1. Target your most loyal customers

Analysing statistics collected through loyalty and gift card programs can help.
In reality, the blended facts flowing from POS, e-Commerce systems and loyalty companies carries treasure troves of client insights — revelations which could help stores to increase basket size, form advertising campaigns and perceive their most treasured loyalty members based on spending habits and preferences.

2. Segregate based on patterns

Determining a customer’s value need to never be a guessing game. Fortunately, data collected by loyalty program company can offer an exclusive insight into customer segments and the way to strategically allocate advertising money to every group.

It’s certainly one of big data’s most vital uses as evidenced by a recent Maritz Loyalty Report. The paper reveals that 94% of loyalty members opt to receive communications from their programs, yet only 53% describe the communications they acquire as relevant.

3. Establish program goals

Once a retailer has created customer segments, the subsequent step is to choose a couple of retention metrics to target with this system. Imagine being capable of delivering personalised reductions based on repeat purchase rate, common order value and purchase frequency.

Once you’ve picked your metrics, measure them to set up a baseline and in the future to test if this system is going on the right course.

4. Determine program structure

If you are honestly executing a custom method to loyalty marketing, imparting the right rewards will usually come naturally.

5. It must be obtainable.

Getting it right means that rewards have to be both unique to the brand experience and tailored to the purchase behaviour.

Random on the spot rewards drive pleasure, interest and momentum in the program and remember the fact that monetary-based rewards like gift cards are each highly-priced and common.

Reward with creative intent to provide a touch point with the intention to differentiate your brands in the minds of the customers.

You’ll be surprised on the goodwill this could engender

Promote

Establishing a loyalty and rewards program permits you to proactively communicate with your existing members, prospects or members instead of passively waiting for them to return to your website or stop by a shop to buy your product.

Talk to your clients and confirm whether your loyalty program is hitting its mark or not.

Don’t be afraid to experiment and continuously evolve to hold a unique place that caters to your consumer base. Your customers and bottom line will appreciate it.

Once you’re off and running, the sky’s the limit with loyalty.

Digital Rewards in Today’s World

Brands have been utilizing loyalty and rewards program within their customer community to keep their customers happy and well away from competition. From loyalty cards, discount coupons to scratch & win offers, brands have been using rewards as an incentive to create a customer base and also keep them loyal to the brand.

In the new digital age, such rewards have been upgraded. Digital rewards are the new ‘in’ thing that bring many advantages to both the customer and the brand. From making it easier for the customers to get their rewards to spreading the word about a brand, digital rewards have given the marketplace a new tool to expand brand reach and loyalty.

Digital rewards are both diverse and abundant. These are a few up-and-coming rewards that are catching the eye of the marketers:

eGifts

According to a study by Mercator Advisory Group, it was found that in 2015 most of the money spent on gift cards was redeemed as eGifts. With the heavy increase in digital buying, it makes more sense for brands to motivate customers through eGifts.

Moreover, brands can also use eGifts to rewards employees to acknowledge their hard work on projects or commemorate special occasions. This builds the confidence in the employees and helps with brand loyalty.

Coupons and codes

With greater numbers opting for online buying, it makes sense for brands to give their offers and discounts in the virtual world. Coupons and codes that are sent exclusively to loyal customers makes them feel special and helps retain them.

Mobile wallets

Incentives like cash backs and discounts, mobile wallets have taken online marketing by storm. Creating a niche where customers are incentivised for their buying behaviour has only increased the appeal of mobile wallets.

Benefits of digital rewards program

Increases the brand’s value

The power of digital rewards is that it gives the customer a sense of empowerment. With every amount they save or a prize they win, it helps build an image of a brand that it is not in business for the profits. It builds the image of a brand that genuinely cares about its customers.

Provides the customers with more choices

The brand gives the customers the option of choosing the kind of rewards they want. Either it would be as loyalty points that can be redeemed for discounts or gifts or in the form of promotional codes that are given to an exclusive customer community.

Customised rewards

Each reward program is made around the customer, their preferences, previous encounters with the brand and their redemption history. This makes the program more relevant and useful to the customer.

Instant gratification

Unlike the days when one had to send a letter to a brand with a token to get a gift, the digital rewards program helps both brands and customers get instant rewards. As soon as a customer provides a preferred action (like, tweet), the customer is provided with their reward. It needs less effort from the customer too.

Get rewarded anytime, anywhere

There is no limit to the application of digital rewards. People can be rewarded just by signing up for a newsletter and this can be done from anywhere. Because of the high mobility of the digital market, people can redeem their rewards just about anywhere.

Brings positive interaction between brand and customer

Everybody likes free gifts. Digital rewards help people collect more rewards doing what they do the most nowadays – being a part of the social media sphere. Reward programs also help in spreading the news about a brand since people share the newest offers with their friends and family.

Incentive to be a loyal customer

With the reward point application, people tend to stay loyal customers to get greater rewards over time. But the rewards need to be good enough to keep the customers interested.

Helps engage on the social media

Facebook and Twitter are where most of a brand’s customer base is situated. Potential customers also reside in the digital sphere. Having current customers talk about a brand on their social media helps in increasing exposure and value. Digital rewards do just that by giving customers freebies when they engage with the brand on social media.

Cost-effective

The cost of setting up a digital rewards platform takes less money than the traditional card-based loyalty programs. It is also easier for customers to check-up on their points and look for other offers that are available.

As can be seen, ‘digital rewards’ is the new mantra to creating a brand identity that is more personal and effective.
With RewardPort programs, your brand gets higher visibility among its customers.

How can retailers attract customers through rewards?

A returning customer is payment enough. The retail space is evolving and with new competitors entering the market each day,  it is becoming increasingly important for retailers to innovate. One of the easiest ways for retailers to say thank you to customers is to create a rewards program. But retailers can make rewards programs go beyond saying thank you. Establishing a reward program can be one of the best marketing strategies that a brand can adopt.

In a study by Nielsen, it was pointed out that customers were more likely to come back to a brand with a rewards program so that they can get to the reward faster. Whether the brand is giving out points, discounts or giveaways is for it to decide. A good rewards program constitutes of a few key elements; in-depth research about the customer is the start point to success. The next basic requirement is to define the basis of rewards; what does a customer need to do to earn the reward? The next step is to keep a track of the behavior and keep a tab on how receptive people are to the program.

The first and most obvious mistake that brands make is to think of rewards as a short term event. However, the easiest way to keep your customers interest in the brand is by updating, reinventing and rethinking how you are rewarding. Modern customers are aware and are often on the lookout for a better deal. Knowing  that a customer rewards program isn’t timeless is essential.

Brands need to go beyond ’selling’. Personal communication is going to keep customers coming back. When creating a rewards program, brands must not hesitate in being generous with the most loyal customers. Putting in the effort to ensure that customers know that their well-being is being considered.

Make rewards actually rewarding. Ensuring that the rewards program in a way helps customers get to an object they desire. Whether it is a cash discount at the end of the year or a specific object that they can win over a period of time. Understand that customers are investing time and money and need to be acknowledged.

Retailers can start by rewarding repeat business. If the brand has a card or points, then rewards need to given out in a timely fashion without any hassle.

Another way for retailers to attract customers through rewards is to not even to create a direct reward, but a great reason for them to engage with the company. Many electronic companies offer free delivery, setting up, some even go on to help customers dispose of their products in a  responsible manner.  Especially when it comes to electronics. For example, batteries and outdated equipment that have a potential to create issues if not disposed of properly.

A rewards program is meaningful only if the customer sees value. At the end of the day, retailers must aim to deliver a reward that feels like a reward.  One that the customer values and remembers. The rewards need to be enticing enough for the customer to be curious about the brand and the rewards themselves.

Create a program with RewardPort and give your brand the edge it deserves.

ICICI Securities Limited – Success Story

How to get rid of your excess inventory from retail shelves?

Available statistic shows that about 20 to 40% of most business’ capital is tied up in inventory. This portends that any business that mismanages its inventory levels even to a small degree can have a huge challenge on their hands. It can affect their capacity to operate effectively and it can place a huge burden on the Company’s finances. The more inventory any business holds the higher the likelihood of running into costly issues such as tampering, theft, damage and stock excesses, obsolescence and so much more. Also, excess inventory on retail shelves can keep you at the mercy of market fluctuations in commodity value.

Here are things you can do to get rid of excess inventory from retail shelves:

Flow with the Market

When the market value of a good dips significantly below what you paid when you were acquiring them, keeping hold of a sizeable quantity of those goods can affect your business. As any effective inventory manager will admit, there is no way to completely insulate yourself from overstock. However, you can run with a plan that helps you reduce your inventory to optimum levels. This would also aid the financial state of your business and position you for other great prospects.

The major goal of controlling your inventory level is to ensure you have enough to match the fluctuations in customer demand. You do not need to tie your cash in maintaining unnecessary stock. You can reduce inventory by communicating effectively down the supply chain. The engagements at each stage must be in sync and data driven. This will ensure that goods reach your customers without interruption while the safety stock requirements will be kept to a minimum. Some organizations use inventory management software to fulfill this role. Every process manager across the distribution channel is can be properly positioned to work with up to date data which creates effectiveness.

Get rid of surplus or obsolete inventory

Inventory management software can help a business to identify obsolete or surplus inventory. It is important to earmark the most effective way of taking out obsolete inventory. The long term damage of holding in unnecessary stock outweighs the damage of holding on to it in the short term. There are a number of channels which businesses can use to dispose unwanted inventory. The first thing to do is to categorize the stock that needs to be scrapped or thrown away, those that can be sold off and the stock that can be used within the organization.

You can also negotiate the option of returning surplus stock to the supplier. Closeout and special discount offers is a good avenue to increase customer demand and move excess inventory. Goods which are sold at a discount in an International market allow the retailer to get back part of his investment while moving the stock. As a last resort, it may be vital to give the goods to a cause or charity which will create some goodwill in the community or you can simply scrap them.

It is important for a business to invest in running with a good inventory management system. This would help to reduce the challenges in your supply chain while improving your profit margins.

Channels of Engagement at the Point of Sale of consumer goods

It is interesting to talk about a subject that is creating so much buzz across various business circles. There is a lot of evidence that points to businesses enjoying higher sales through active engagement of their point of sales units.  The influence of the out of store online activities on in-store purchase decisions is unique and worth a close look. The moment a consumer is about to do a transaction; it is critical to build loyalty and create multiple income channels for your business.

The message of marketers to attract customer interest in various brands has reached a saturation stage. Sadly, this has led to a point of diminishing returns for marketers who operate in various industries. This means that any business that wants to stay ahead of the pack must be able to communicate with its consumers at the right moments in order to win the lion’s share of the customer’s attention.

One of the best ways to engage this opportunity or business dynamic is to envision the engaged consumer as a segment all by itself. Many brands have an opportunity to engage a great number of their clients but are not paying attention to this new trend. It is important to give a high priority to this move in order to draw customers that would be loyal and valuable to your brand in the long term.

Here are 4 of the channels of engagement at the point of sale of consumer goods that is generating the right results:

Text Message promotions

Shoppers can be enticed to enter contests while shopping with the use of an effective text message. It is important to get the buyers’ consent in order to interact with them and build a strong following for your brand through their mobile device. About 67% of individuals do their shopping through a mobile device so this is a channel that must not be overlooked. You can create a trend by telling them the best time to shop while tying it to various store locations where you may want to drive increased sales.

Email Coupon programs

Consumers can register to receive limited time offers and coupons from their favorite brands. They opt in for such messages/communication from in-store promotions, brand websites, text message, mail messages or in response to calls. You can track the conversion rate from this medium and further understand the location from which the consumer makes the purchase. This can help you to build a strong data and dominate the market that you serve.

Brand Websites

Consumers are encouraged to register on the sites and provide important details about themselves. The data would capture their social network profile, information about their household and this can aid the message, research, segmentation or relevance of your sales approach to reach them.  This can help you create a stronger engagement with even the most passive customer on your list.

Social Media

Social media connects brands to their customers like no other channel. When this avenue is well harnessed, it can influence the shopper’s behavior and increase the profit margins of any business.

Why Sales Promotion work and some don’t?

Every sales promotion begins with a business or brand making the right offer. This is true of one-time marketing concepts that help in boosting your short-term revenue or expanding your business.

The ideal sales promotion offer needs to have the following components:

1. Align with your competitive edge

2. Creates real value for your clients or customers

3. It is relevant

The usual strategy is to go for conventional offers like Discounts , extra of the same product, a related product by the same company or a freebie of excess inventory. Lets look at each aspect

1. Discounts – these work always, but to a extent. A brand cannot forever be giving discounts and get identified as “discount” brand.

2. Extra of the same product – this is a slightly better strategy than giving discount as it gives a better perceived value to the customer.

3. Get a related product – Good if want to sample your new offering that does not conflict with the existing product category

4. Give a free from your excess inventory – This may save you some monies but could give the customer a wrong impression if not communicated right.

The new approach to sales promotions is to catch the fancy (and the spend) of your customers by giving them something which is aspirational and has a much higher perceived value. Two things stand out:

1. Offer a service – Run a promotion that rewards the customer with something exciting that matches the target profile like Movies, a spa experience or mobile recharge .Something that gives instant gratification and has a high perceived value and is relevant

2. Sweepstakes with assured gift – Everybody loves to win. An assured prize giveaway with a chance to win a grand prize appeals to all. A sure win gives instant gratification and gets the brand love and a chance to win big like a car / mobile phone / dream holiday keeps them engaged .

When you have decided on the sales promotion plan that you want to implement, it is important to prop up its message and communicate effectively. This is the point where many businesses miss it in their campaigns and marketing efforts. This failure usually happens in two ways:

• They do not effectively promote their program to their clients and potential customers
• They use the wrong message or marketing tools to reach their audience
• The rewards are not exciting enough
• It’s not easy to get the free gift

A close look at the first point shows that the default sales promotion drive of most businesses is to advertise. However, advertising adds to the expense that an organization incurs. The cost of running a media campaign is high and the returns may not justify the investment made. Research shows that price-sensitive shoppers may be attracted by an advert but may not return to consummate the purchase or transaction.

There are effective ways to drive sales promotion and some of them would be discussed below.

Use your Store effectively: It is ideal to make full use of your store signage to woo buyers to the products you have on offer. The employees can strengthen the stakes by mentioning the promotion to your customers. Employee stickers/tags/buttons can talk about the promotion while promotional flyers can also do a good job. Reminders on receipts or the use of an inexpensive sticker or rubber stamp can help to drive the best returns for your business.

Embrace the Internet: You can give a strong voice to your Sales promotion by highlighting it on the main page of your website.  You can create a page that talks about your promotion and draw in a strong following by offering freebies which can help you build lists for future marketing efforts.

The Telephone: Your employees can harp on the promotion to anyone that calls your business or you can change your answering machine message to let customers know about what you are doing.

Email – You are sending out hundreds of emails everyday. Add the promotion to the footer. Its zero cost free media.

There are other powerful media which you can harness to generate the right results for your sales promotion. They include Flyer distribution, use of conventional media and word of mouth. It is important to get the word to as many people as you can through these channels. It is vital to mention that you can have a great sales promotion plan but without a strong marketing base to drive it; no one will know about it and this can lead to failure.

The best sales promotion is simply anchored on understanding your market and driving your plan to bring the returns you desire. There is a thin line between success and failure in this range but following some of the rules listed above would get the job done for you.

Effective Promotional Marketing

There is one Marketing question that always begs a detailed answer – What is the right way to go about planning a product promotion activity? It’s easier asked than answered. Over the many years that we have been working with Marketing divisions across Industry types, we have actually drawn up a list of 10 important issues that Managers must consider while planning a Promotion. While they may not be in Chronological order, each point jostles for attention. This is an attempt to assist the Marketing manager build a template for every promo; remember every promo needs the same amount of consideration before an idea is finalized.

1. Identify the Role of Incentivization

Providing added value to customers by making available an “incentive” instantly influences purchase. If the customer is convinced that he is getting more than the value he is spending on the product, it will persuade him further to make the purchase. The strategy lies in convincing the customer that he will not only receive the worth of his rupee but also supplementary benefits. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures motivate the customers to buy more and thus, it increases sales of the product. The promotion must be able to change the perceived value or price of the product or service.

2. Communicate with your consumer – offline & online.

Social media, smart-phones and the Internet are the buzzwords of marketing of the future. The customer is becoming more and more technology-friendly and accustomed to the ways of approaching products through these media. By making product promotions accessible via such media, the customers are significantly encouraged to utilize the benefits offered to them. Not only do these media influence the behavior of the customers, it is the swiftest and most effective way of reaching out to your befitting target-audience.

3. Collect, manage & nurture data.

Sales promotions are not only effective in the acquisition of new customers but also in the retention of your existing customer-base. It is essential to recognize the significance cultivating a relationship with your existing customer-base. In-order to develop and nurture relationships, it is important to firstly collect and create powerful databases. Secondly, they must be managed to eliminate unusable data in order to effectively target the usable database. The customers must be made to feel their value in the company in order to extract long term loyalty.

4. Be relevant

Sales Promotions must not only be relevant to the type of product being sold but must also suit the needs of the target-audience. If the customers are able to relate to the promotion being offered are able to comprehend it effortlessly, then the chances of the promotion resulting into a sale are higher. The sales promotion must also be able to hit the consumer at a particular behavioral stage.

5. Make sure to Customize and localize

The promotions offered must be customized to suit the requirements of the customer with regards to their demographics and psychographics. The promotions must be also be designed according to the attitude & behavior of the target-audience. They must be able to provide instant gratification on a temporary basis in-order to convince the customer to take immediate and simplistic action to achieve results of the offer.

6. Clarify objective and provide tangible benefit.

The customer will only be convinced to make the purchase of the product if they feel the value they are receiving is more than the amount they are spending. The customers must be able to measure the added value they receive along with the purchase. By offering clear objectives of the promotion, the brand is able to foster a trustworthy relationship with the customer – which is key in terms of long-term loyalty benefits.

7. Maintain timing, duration and frequency

Sales Promotions if introduced at a appropriate time can yield greater results. India is a very time driven economy; festivals, occasions and seasons are great influencers in the consumer’s purchase decisions. The promotions must be able to provide the customers with instant gratification over a temporary period and must not be repeated too often, as the customers will then be unable to differentiate the added value of these offers in comparison to the original product.

8. Engage your customer

The customer wants to be felt important and appreciated; and if the brand recognizes this need of the consumer and nurtures it, they can witness groundbreaking results. The brand must endeavor to involve the customer in promotional activities as much as possible. Any activity that engages the customer to interact with the brand – for instance contests, sweepstakes or coupons will instantly appeal to the customer’s psyche and induce a sense of association and bonding with your product.

9. Integrate sales promotion with the communication strategy

Sales promotion is an aspect of a promotional mix that includes –advertising, personal selling, direct marketing and public relations. While sales promotion is an effective tool itself, it must be used in accordance and relation to the other tools of the marketing strategy as well. Once the promotions are complemented by the other elements of the promotional mix, the efficiency of this tool will automatically be intensified.

10. Integrate sales promotions with social media

Sales Promotions must be run on social media such as _ Facebook, Twitter, Foursquare. Linkedin and Pinterest. Sufficient word of mouth is generated via social media that not only increases awareness but also heightens reach of the promotions. Integration with social media immensely intensifies the effectiveness of the campaign. The reach of social media must not be overlooked and must be used effectively to create viral effect.

10 Mistakes to Avoid in Sales Promotion

Numbers never lie and if numbers are to be believed, take a look at following industry figures of impact of sales promotions:

• Total Reach Value: 90%
• Total Recall Value: 89%
• Positive Impression On Customer: 52%

The relevance, reach and impact of meticulously planned sales promotion on customer behavior is unsurpassable; which inversely also means that if your sales promotion is not planned well, it could negatively affect your brand and business with equal values!

So, how would you ensure a flawless sales promotion plan that affirmatively reaches and affects as many people as possible? Here are the common mistakes that you should avoid to maximize the impact and minimize the remorse:

1. Thinking Single Channel

Sales promotions can elevate the sales and profits dramatically in a short time. To fetch optimum outcomes of the sales promotion activity that took much of your hard work and huge capital, it is necessary that you utilize all the channels of promotion available to you. The current advancement of print and digital media offers a beautiful amalgamation to explore infinite opportunities to boost your sales and brand value. When your consumers see you everywhere, they get inured to your brand and you gain their acceptance. Do not keep it only online (which may be fine if you are an online company) or only print promotion. Integrate all the channels ingeniously to stand ahead the crowd.

2. Not Setting A Goal Or Deadline

Launching a sales promotion program without fixed deadline or measurable goal will lead it to whole big null point. Set a start date and end date to streamline your efforts to complet everything within the stipulated time frame. This will help keeping each component of the program in track. By setting up goals, you will always have a figure in hand to achieve and to measure the success of the campaign.

3. Fixing On Presumptions

Don’t presume customer’s behavior. Never plan your sales promotions assuming that the segment you have created defines your real or limited customer base. It is very much possible that a profitable share of customers in high concentration is in the segment you do not tap your sales promotions for. Study your data patterns well to have a diverse profitability.

4. Not Solving It For Each Stakeholder

While planning your sales promotion program keep in mind how would it impact each of your stakeholder or retailers or any other patron associated to your organization. You may launch a promotional plan that attracts new customers with some special offer or benefit but would it be fair for your regular and loyal customer who may not have that benefit? Take each stakeholder into your consideration for an overall successful sales promotion program.

5. Making It Too Complex

Keeping your sales promotion plan simple makes it easy for you as well as your customers. Your customers will feel more connected and involve when the processes are simple without much complicated terms and conditions. With a simple sales promotion activity, capturing, handling and processing the data for result analysis and profit calculation gets extremely easy and effective. So, do not unnecessarily complicate things.

6. Not Keeping It Relevant

Relevancy is the essential most factor of any sales promotion program for its success and positive outcomes. Relevant program helps you in targeting your right customers and communicate with them for awareness and sales. Relevancy of the sales promotion plan also ensures that your customers are reminded about your brand or product with full intensity.

7. Communication Gap with yourTeam

For successful promotional plan, it is imperative to involve and inform all those part of your value chain that includes your team members, distributors, retailers about your plan. This provides the required thrust to pull it to an extended level for broader effect and profit.

8. Not Testing Your Assets

This is a very common mistake that is easiest to avoid. It doesn’t take much to test all your assets that you plan to consume within your promotional program to be active, available and useful. For example, you may roll on an email campaign with a broken link due to lack of adequate testing. This is a sheer waste. Avoid it.

9. Not Capturing The Data

Without capturing the data appropriately, it is impossible to measure the effectiveness and successfulness of any activity. Capture the data to realize if your plan has delivered what you expected. Capturing the data can also benefit you to apprehend new market segments and opportunities that you never thought of before.

10. Not Using The Captured Data

This is the biggest mistake companies commonly get trapped into. Before planning the next sales promotion plan, it pays largely to dig in the previously captured data to concentrate upon profitable segments along with exploring new dimensions for unconfined growth.

For a short word, make your sales promotion plan to attract new customers while also encouraging your brand power and loyal customers effectively.

These are a few common mistakes you need to be aware to ensure a flawless sales promotion. You should do everything possible to learn whatever you can about the complexities and nuances of your industry or profession–and not just once, but regularly. By knowing the potential bottom-line of impact of your sales promotion, you’ll have the information to invest the energy necessary to host a strong flawless sales promotion that will deliver boosting results over the time period it covers.