Customers are the main drivers behind any successful business. They are the ones who pay and have to be persuaded to sign on the dotted line. Promotions are a powerful way to drive sales.
Over time, customers develop a perception of your brand in their mind, and compare it with your competitors’. According to Mintel, 70% of buying decisions are made at the point of purchase (POP) or point of sale (POS), where a key differentiator persuades them to buy from one supplier over another. The value carried by a brand may play a role, but it is more likely that a sales promotion was the key to persuasion.
A sales promotion is a marketing strategy used by organisations to drive sales. There are many different types of sales promotions, but they all focus on persuading people to make a purchase or become a customer.
The use of sales promotions sparks consumer excitement, retail reaction and wholesale reward. Here are some B2B sales promotion ideas to help you maximise your revenue:
1. Break-Based Promotions:
These are becoming more widely used by companies that can accurately administer them. For example, buy 100 units and get X% discount, buy 500 units and get Y% discount.
Used to encourage volume purchasing on fast moving lines, the discount can be banked or used to reduce the selling price enabling faster sell through.
2. Mix & Match Promotions:
We are also seeing mix and match variations. For example, buy a mix of 100 units of a combination of five products and receive a % discount.
Used to encourage the uptake and distribution of slower moving products attached to faster moving products, also to cluster and promote ranges of products together.
3. Off Invoice Breaks-Inclusive Discounts:
This offer encourages volume, if a customer reaches the discount break levels by purchasing the appropriate quantity, they will receive the specified discount per item. If a company purchases enough to reach any break then the discount offered at the highest level achieved will be applied to the entire transaction (back to dollar zero).
Great to recognize volume purchases where the client is encouraged to reach the highest tier and apply the benefit to all purchases.
4. Rebate Programs:
Customer rebates are also a promotional lever encouraging behaviours like loyalty and target attainment within a defined time period.
Used for when you don’t want to apply more discount, as the rebate is given later after the purchase it’s not reflected in the sell price, helping to uphold a brands equity without deep price discounting.
To remain competitive, companies need to have a Trade Revenue Management solution that has the flexibility to manage complicated pricing rules and discount structures along with sales incentives such as rebates. The challenge for many is making the leap from manual systems such as spreadsheets or code modifications to existing systems to get by. The benefits are obvious.
To effectively and efficiently manage promotion pricing, you’ll need end to-end trade revenue management software that can resolve pricing for promotions and offers with margin visibility for all transactions and all sales channels. To put it simply, you’ll require a centralised and reliable single source of pricing truth.
Interested in increasing your sales and profitability?
Check out our Free Trade Promotion Pricing Tactics Cheat Sheet.