When promotions fail?
We are all crazy about promotions, aren't we? Very often we do not even read what they concern or what their conditions are. We are happy to save and still get the product/service without compromising its quality.
Although we often provide you with tips on being successful by using promotions, in this article we are going to discuss why they sometimes fail. Promotions are not a ready solution for everything.
Read more: Discount by a Percentage or a Fixed Amount?
Let's see why and when they fail
#1 When you don’t set a clear goal
If you shoot in the dark, you might miss a hit. Each promotion shall have clear objectives and criteria to measure its effectiveness. You might set one of the following goals:
- Attracting new customers.
- Retaining existing customers.
- Selling stagnated items.
- Activating inactive customers.
#2 When the promotion is not part of the overall business and marketing strategy
Promotions are useless if they are separated from the company's overall strategy. If you intend to prepare deals and offers just because you know they attract users’ interest - don't do it.
You should consider the following few factors:
- Purpose - why do you need this promotion?
- Audience - which is your target group?
- Channels - how are you going to advertise your promotion so that it reaches the right people?
- Duration - what will be the period of your promotion?
- Conditions - what should customers do or shouldn't do to benefit from your hot offer?
- What difficulties could you possibly have during the promotional period - customer inquiries, stock, technical and technological factors?
Consider all possible scenarios and then carefully plan your promotion.
Read more: Free Shipping or Discounted Price?
#3 When you do not target the right audience
You have an attractive offer and a powerful message. But somehow you don't manage to reach the target customers. This is a tricky task, but if you once manage to reach the right audience, success will quickly follow.
There is no universal equation for each and every business. Experiment and don't give up!
#4 When the promotion period is too long or the promotion is available too often
Many businesses benefit from promotions. This way they attract more potential customers, shorten the decision-making time, increase the average order value... But promos, however, should be in moderation.
Discounts often attract users who value saving money more than the quality of the product/service. This type of audience can distort your perception for the market and focus your energy in the wrong direction. For example you can start making promotions so often that discounted prices become regular ones.
In such case your customers will get used to expecting lower prices and your profit will be always on the verge.
#5 When your website is not ready for the upcoming traffic
You prepared a commercial campaign on TV, radio and all digital channels. And... surprise! Hundreds of frustrated customers cannot reach your luring offers simply because your website'sbandwidth is not sufficient and therefore your website is loading too slowly. The result? Numerous disappointed potential customers who decide never again to interact with your business.
Whenever you prepare a promotion, check your website's resources and if they can handle the expected traffic. Even if it comes to only one day of the year, this day can be crucial for your visitors. Your whole business image may depend on this single day. Never underestimate your hosting account's resources.
Hurry up and choose the right hosting plan for your e-store!
#6 Universal truths about promotions
- Customers are skeptical. Especially when your potential buyers are not familiar with your brand. Discounts very often evoke the following questions: Why is this item sold at a lower price? What's wrong with it? Where's the catch? Some users believe in the English saying: "We are not rich enough to buy cheap things". Sometimes something cheap could end up quite expensive.
- Promotions don't build up loyalty. Be prepared that they can attract buyers who are there just because of the better deal. If they find a better offer, they will disappear. Very sad, isn't it?
- Customers learn to haggle. It is a truth well known that promotions not planned carefully enough can "teach” customers to expect discounts all the time. Why not even shop only when your products are discounted? Let's be honest - no seller wants to get there.
After all of the things we’ve said... You have the great opportunity to optimize your approach towards promotions.