Covid 19 has had a huge impact and presented several challenges to the ever-changing world of retail. It is clear that bricks and mortar models are going to have to adapt quickly as even though shops are now reopening there is a clear sense of concern, with customers preferring to spend online rather than visit shops. BRC data1 shows that UK footfall on the third week of reopening was down 49.6% from the previous year. This has meant that since re-opening the high street has been filled with sales as shops slash prices (as high and as crazy as up to 70%2) with the hope to get the economy running back to pre-covid levels.
Covid 19 has also brought along an ever-growing added challenge of customers going online for their needs with 43% of UK shoppers spending more online during lockdown than usual (Global Data, 20203). Therefore, with the online retail market growing what have you got in place to make your products stand out on the shelf amongst all the reduced items?
Yet, offering a reduced sales price is not the only way to a quick boost to increase customers interest. Furthermore, it might do more harm than good by damaging long-term customer relationships either by irritating customers who previously bought it full price or devaluing the brand in the long term. It doesn’t have to be this way, below are top ways to tactically boost sales without slashing your prices.
1. Cashback Promotions
For brand owners looking to avoid the cycle of price discounting, cashback offers the chance to entice customers with a potentially higher reward than a point of purchase saving may offer. They also allow a brand to offer an incentive above and beyond the retailer price point, balancing product value with perceived reward. A digital communication platform (in addition to point of sale), allows the reach of a campaign to be extended, targeting the zero moments of truth when a consumer begins their journey of researching a potential purchase.
Cashback promotions are also great at creating a quick boost in sales as they allow you to set the time limits with customers which gives them a reason to buy now rather than wait. They are also easily accessible, can be applied to almost any market and they are relatively low cost to deploy.
2. Instant win promotions / Free prize draws
Instant win promotions are especially great at attracting and engaging customers as they create huge excitement with customers. This can be applied either on-pack, digitally or via social media. Everyone has heard of the story ‘Charlie and the Chocolate Factory’ with the intense anticipation of whether Charlie will find the golden ticket in his chocolate bar. So, why not bring this into the 21st century and create this online?
Instant win promotions are also great at creating an extended customer journey as the journey doesn’t just end when they have bought the product. This excitement continues past finding out they are a lucky winner. Several examples of this working in action are Cadbury’s Cream Egg Campaign that ran in the early months of 2020 and McDonald’s Monopoly which has run for the last 15 years pleasing customers with prizes ranging from £100,000 cash to free apple pies.
3. Scratch & Win Campaigns
Scratch & Win Promotions are nothing new but highly effective. Billions are spent in lotteries and gaming with the chance to win. As shown as in 2018/19 financial year alone the National Lottery sales were £7,206.8 million (Camelotgroup4). Meaning this simple yet effective marketing tool still works.
Scratch & Win promotions are great at engaging customers whether you decide to create them as a physical card – showering customers with a glittery mess or bringing them into the 21st century and creating them online as a digital card, both are equally successful and increases customer engagement.
Therefore, there are plenty of different options out there to increase customer engagement and add a quick boost to sales rather than price discounting and slashing prices. Equally, these options allow you to extend your customer journeys whilst positively impacting brand loyalty, increasing customer satisfaction and allowing your customers to engage more with your brand online. At MRM we are always happy to help and give advice, with our expertise your campaign is in safe hands. Please don’t hesitate to give Mel a call on 01858 414714 or drop us an email to firstname.lastname@example.org.