What Is Promotion Marketing?
In this article, you will learn the basics of Promotion Marketing, why you need a promotions strategy and get 5 Promotion Campaigns you can implement right now.
At Talon.One, we define Promotion Marketing as the use of incentives, rewards and special offers that are relevant and targeted with the goal of influencing a purchase, attracting customers and increasing brand awareness.
The foundation of successful Promotion Marketing is the effective delivery of a valuable and relevant reward or incentive to the right customer at the right time.
Why You Should Care About Promotion Marketing?
As an online business, improving customer engagement, driving ROI, winning new customers and increasing revenue while maintaining low promotion costs is no easy task.
To achieve your promotion goals, you need a well-executed strategy to effectively incentivize customers. If you are targeting all customers with your promotions, sending out thoughtless coupon campaigns and blindly giving all customers 20% discounts, you are overspending on promotions and losing revenue.
Some Stats You Should Know:
Mobile coupon users will surpass 1 billion users by the year 2019. -Juniper Research
79% of consumers say they are only likely to engage with an offer if it has been personalized to reflect previous interactions the consumer has had with the brand. -Marketo
About a third of millennials said they “always” or “very often” use discounted offers when shopping online. -eMarketer
Research states that customers acquired through referrals are 16% more profitable than those acquired through other channels -
Harvard Business Review
Optimizing your digital marketing strategy with targeted promotions is a smart investment for any business looking to scale, reduce Customer Acquisition Costs and increase revenue.
To get started, we recommend building your strategy with the following types of promotions: coupons, discounts, referral rewards, loyalty programs and product bundling.
5 Promotion Tactics For Each Customer Phase
1. Discounts To Activate New Customers
Tactic: If a new customer has not made a purchase, send an email offer with 20% off their on their first order, valid only for the next 48hrs.
Why: In a survey of US internet users, 60% of email recipients were influenced by discounts and promotions. - eMarkerter
More Ideas: 8 Amazing Email Promotions You Actually Open
2. Coupons To Improve Engagement
Tactic: If a customer has not made a recent purchase, give them a coupon code for 10€ off their preferred item category.
Why: 34% of internet users look for online coupons on a weekly basis. - eMarkerter
More Ideas: 8 Great Coupon Campaigns You Need Right Now
3. Referral to Acquire New Customers
Tactic: If a customer makes a successful referral by sharing a link on social media, give them a 10€ coupon when their friend makes the first purchase.
Why: Conversions increase 133% when mobile shoppers see a review that is positive before making an ecommerce purchasing decision. -IBM
4. Loyalty to Increase Retention
Tactic: If a customer makes 5 purchases, offer them a special VIP discount to a partner service (e.g., restaurant gift card, shopping center voucher, movie tickets).
Why: 79% of both Millennials and Gen Xers want a strong loyalty or discount program. -IRI Worldwide
More Ideas: How Loyalty Markeeting Can Save Your Business
5. Product Bundling to drive revenue
Tactic: If a user puts 2 or more products from category "X" with a cart total greater than 50€, give them a free product.
Why: 81% of emotionally connected consumers will not only promote the brand among their family and friends, but they will also spend more. -Capgemini
What is a promotion engine?
To launch these types of campaigns, your business should ensure it has a flexible and secure promotion infrastructure in place to power a variety of use cases.
With a Promotion Engine like Talon.One, you can create, manage and track all your discounts, coupons, referral campaigns and loyalty programs in one holistic solution.
Once you have a Promotion Engine integrated, you can effectively scale your promotions to achieve your business goals.
Now that you know the basics of Promotion Marketing and have some campaign ideas to implement, you can tailor these tactics to meet the needs of your business to optimize your Digital Marketing strategy.
If you are still struggling to manage your promotions effectively, wasting precious resources and wasting your promotion budgets, 2018 is the year to fix it.
Get in touch and let's discuss your promotions strategy for 2018. Leave a comment below or get in touch.*
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