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Smarter Price Promotions

Smarter Price Promotions – Seven Points To Consider

Dumb or Smart Promotional Pricing

In pricing it is crucial to consider what is going on in the customers mind and what you are looking to achieve as a business. From our observation there are many companies who appear to be operating a dumb approach to pricing promotions. The following seven points will hopefully help you think about a smarter way of looking at promotions.

Seven Points To Consider For Smarter Price Promotions

7 Ways To Better Promotions

  1. Whilst you may be looking at offering a discount. You should recognise that the price discount is purely there to grab attention. By getting the attention this is now the start of the process
  2. Every promotion should be controlled. There should be clear start and completion points and a clear exit plan
  3. It should be explicitly clear at the start of the promotion the target audience that you are trying to engage with. Having a promotion in uk that is suitable for all is going to work
  4. A smart promotion should be looking to get the customer to buy and complete an additional behaviour.
  5. The promotion should be an integrated part of the marketing mix and not just a random, impetuous activity completed to stimulate sales
  6. If you must run a promotion make sure that it is different to your competitors.  A promotion that is exclusive to you has the chance of achieving results. A promotion that is exactly the same as your competitors is dumb
  7. There should be clear metrics in place to measure both the promotional sales and the impact on the brand health

The Three Smart Promotional Elements

  1. Genuinely helps the customer save money
  2. Provides the customer with information and helps them think
  3. Positively interacts with the customers emotion

Three examples of Smart promotions

Buyapowa:

  • The promotion is the starting point – i.e. the more that buy from a collective buying perspective the lower the price
  • The actual rationale is that the promotion is a great mechanism to get qualified leads and build a series of lists

MyZone Phone Network

  • Allows you to save time if call at a certain time
  • They use promotion to get a better price but also change calling behaviour

Pay Your Age

  • During the London olympics for ticketing a price promotion existed for under 16’s in that you paid your age for the ticket
  • Free tickets were offered to schools if they increased sporting participation

Seven Points To Consider For Smarter Price Promotions

Price promotions are easy to copy. Don’t become addicted to continual price and offer promotions that don’t do anything other than losing you margin. Promotion should be considered as a way to get attention. Think about it from the perspective of have a promotion to buy and ….. . For more information on sales campaigns click here Andrew Goode an experienced marketing and sales professional. For more information on marketing and sales techniques click here

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