LESSON 4: PROMOTIONS
Create Sales Promotions
Promotions are a big part of doing business, and will help drive in customers, and happy customers will tell all their friends, family and acquaintances about your company and the great experience they had with you. There is an unlimited number of promotions that you can do, but I will go over a few of them below to get you started.
This is one of my favorites, one of the biggest problems of selling online is obviously competition since it is so popular. Creating bundles is a great way to have a unique product that no one else has (eliminating competition). How this works is you take multiple skus to create a single product. For example, if you want to create an 'Extreme Camping Package' bundle you would create a product that includes all of the following (remember this is just an example, you can create your own bundles).
2. Fishing rod
3. Fishing reel
4. Tackle Box
7. Multi-tool knife
8. Portable stove/grill
10. Sleeping Bag
If you want to create a Photo bundle you can include
1. Digital Camera
2. Camera Case
3. Extra Battery
5. Memory Card
6. Photo Printer
7. Photo Paper
You can choose which products to include, make bigger bundles, smaller bundles, high end more expensive bundles, low cost budget bundles etc. There is literally no end. I know of a few companies that sell only this way and do very very well. You are able to combine all the products, the shipping costs etc to make it where it is much cheaper to buy the bundle than it is to purchase each product individually.
This is a very common method to drive traffic to a new business, or even an old one. How this works is you pick a popular product that you are willing to take a loss on to drive in traffic. Let’s say you have a tablet, that your cost is $50, but on your website, you sell it for only $40. This won't do much for your bottom line, but it will generate traffic (with a little bit of marketing, which we will go over soon). Once a customer gets a great deal from you, they will spread the word of your company, and they will generally be a repeat customer of yours for years.
You can also create a loss leader promotion where they can buy the main product at a loss if they purchase specific accessories that generally relate to the product they just bought, this will help offset your losses.
Coupon codes are a known working method of offering your customer a reason to buy from you, you can create an unlimited number of rules and uses for a coupon code. You can make them for specific product(s), or you can make them site wide. But a few examples of a coupon code would be
buy 3 or more and save 10%
Purchase $200 or more and save 10%
buy this item and get that item for free
There is really an endless amount of possibilities of ways you set up a coupon code to behave.
Rewards are a great way to show your customers you appreciate them, and it gives them a reason to come back (to use the rewards). There are a variety of ways to reward your customers, here are a few examples
Earn 2% in reward points for anything purchased on your website
Earn 100 reward points ($1.00) for new customer sign ups (great way to collect email addresses for marketing, and they are going to have to spend money on your website to use them, so it’s a win win for you.
Earn 500 reward points ($5.00) when your customer has a birthday.
Earn 100 reward points for a like on Facebook
Of course, a topic on promotions wouldn't be complete without bringing up old fashion markdown sales. It is a good idea to run sales from time to time. You can run a site wide sale, which means every product in your website in on sale, or you can run sales on just specific products or product types. Here are the examples
site wide sale
You run a 5% off everything in your store
You run a 10% off sale on all phone cases
You run a 15% off sale on phone accessories only
You run a 5% off sale on all Samsung brand products
You just have to be creative and think of ways to give your customers a reason to shop with you over and over. This is how you build a customer base, and retain that base. At the end getting the customers to interact with your website (buying things) is the ultimate goal.