Sales Promotion Planning: A Comprehensive Guide

Imagine this – you have a fantastic product or service, and you know it’s something that people will love. However, despite your best efforts, sales are sluggish.

Sound familiar?

Don’t worry, you’re not alone. Many businesses face this challenge at some point, and the solution could be simpler than you think – a sales promotion!

A well-designed and carefully executed sales promotion can generate excitement, attract new customers, and boost sales. But where do you start? Creating a successful promotion can seem daunting. That’s why we’ve put together this article to guide you through the steps of creating a sales promotion plan that will help you achieve your goals.

Think of a sales promotion plan as the secret sauce behind any successful sales campaign. Whether it’s a simple discount or coupon or a more complex loyalty program or referral bonus, a well-executed sales promotion plan can help businesses attract new customers, retain existing ones, and increase revenue.

To create a sales promotion plan that works, you need to carefully plan and consider your business’s goals, target audience, and available resources. Whether you’re planning a large-scale promotion well in advance or a short-term one on short notice, starting early can help ensure that all the technical details are worked out and that the promotion rules are clear and agreed upon.

But fear not! Even if you’re new to sales promotion planning, having an experienced agency like Benamic on your side can help make the process more efficient and effective. In this article, we’ll cover everything you need to know to create a successful sales promotion plan, so let’s get started!

Gift with purchase

Another popular sales promotion that has proven to be highly effective is the gift-with-purchase promotion.

This type of promotion is often used by retailers or brands to incentivise customers to make a purchase by offering a free gift with their purchase. The free gift is typically an item that is related to the product being sold or is a popular product that the customer may be interested in.

For example, a beauty brand may offer free lipstick with the purchase of a certain number of their products, or a clothing retailer may offer a free tote bag with a purchase of a certain spend of clothing. By offering something extra, these promotions create a sense of added value and attract customers who might have otherwise been on the fence.

Gift-with-purchase promotions can be highly effective in boosting sales, since customers are more likely to make a purchase when they feel like they are getting a good deal or receiving something for free. In addition to boosting sales, gift-with-purchase promotions can also be used to promote new or lesser-known products. Take the example of Benamic’s partnership with Panasonic to promote the Lumix G camera range across Europe.

Trade-in

Now let’s talk about trade-in promotions, which are another great way to incentivise customers to upgrade their products.

Most commonly used in the automotive, electronics, and appliance industries, trade-in promotions can be applied to a wide range of products. With this type of promotion, customers can bring in their old product and receive a discount or credit towards the purchase of a new one.

For example, a car dealership may offer a trade-in promotion where customers can bring in their old car and receive a discount on the purchase of a new one. Similarly, a retailer selling electronics may offer customers a trade-in promotion where they can bring in their old device and receive credit towards the purchase of a new one.

Trade-in promotions can be highly effective in generating sales and increasing customer loyalty. By offering customers a discount or credit for trading in their old product, businesses can encourage customers to upgrade to a new one while also giving them the incentive to stay with the same brand. Additionally, trade-in promotions can help businesses to clear out older inventory and create space for new products.

Sweepstakes

Who doesn’t love the chance to win big? A sweepstakes sales promotion offers customers just that – the opportunity to score an exciting prize in a random drawing. It’s a surefire way to build some excitement and pique interest in your product or brand.

To enter, customers usually need to complete a specific action, like making a purchase, filling out a survey, or submitting their contact information. The prize can be anything from a modest gift card to luxurious holiday or even a fancy new car. It’s all about appealing to your target audience and getting them amped up about your promotion.

Sweepstakes promotions are a fantastic way to generate buzz around your product and collect valuable customer data for future marketing efforts. However, it’s crucial to ensure that the promotion complies with all relevant laws and regulations to avoid any legal issues that could harm the reputation of the brand or business.

If you’re looking for inspiration for your next sweepstakes promotion, take a look at the success story of Benamic’s partnership with Glanbia for the Optimum Nutrition “Winning Starts With Recovery” campaign.

Instant Win

An instant win sales promotion offers customers the chance to win a prize on the spot, rather than through a random drawing later. To participate customers usually must complete a specific action, such as making a purchase or submitting a code, to see if they have won a prize.

From small rewards like gift cards or discounts to a larger-than-life prizes, like trips and cars, the prizes in instant win promotions are designed to be appealing to the target audience.

It’s important to ensure that the instant win promotion complies with all applicable laws and regulations and that the odds of winning are clearly disclosed to customers. With that in mind, let’s take a look at the success story of Benamic’s partnership with Mattel’s Fisher-Price brand for the “Discover the First Wonder” campaign.!

Before jumping any further into creating your sales promotion plan, it’s crucial to define your goals. This step sets the foundation for a successful campaign by ensuring your objectives are clear, concise, and measurable.

Ambiguity can lead to confusion and hinders the effectiveness of the promotion. Therefore, it’s essential to ask yourself what you hope to achieve with your promotion. Do you want to boost sales, attract new customers, or retain existing ones? Be specific in your answers. For example, rather than setting a broad and vague goal such as “increase sales”, set a specific target, such as “increase sales by 10% in the next quarter.”

Defining your goals in detail will give you a guiding star to follow throughout the promotion planning process. It will also help you identify the necessary resources required to successfully run your campaign.

By having clear and specific goals, you can ensure that all aspects of your promotion, from choosing the type of promotion to selecting the prizes or rewards, are aligned with your objectives. So take the time to define your goals thoroughly and keep them in mind throughout the entire promotion planning process.

In Summary:

• Set a strong foundation: Start with well-defined and measurable goals for your campaign.
• Identify desired outcomes: Clearly state what you aim to achieve, such as new customer acquisition or increased sales.
• Be precise: Use quantifiable targets to drive actions and decisions throughout the planning process.

Let’s move on to the second step of creating a successful sales promotion plan – identifying your target audience. The success of your sales promotion plan largely depends on how well you understand your target audience. Who are they and what motivates them to buy your product or service? Identifying your target audience is critical in crafting an effective promotion.

To get started, gather data on your current customers and market trends. Use surveys, social media insights and customer interviews to collect this information. Analyse the data to identify common characteristics such as demographics, behaviour, and preferences. It is also important to consider spoken languages and geographic information as this will inform your targeting decisions.

One way to refine your understanding of your target audience is create a buyer persona. This involves giving your ideal customer a name, age, job, interests, and other personal attributes to create a fictional representation. By doing this exercise, you can humanise your audience and gain deeper understanding of their needs and pain points.

By having a clear understanding of your target audience, you can tailor your messaging, offers, and channels to better resonate with their needs. Whether you are targeting existing customers or trying to attract new ones, your sales promotion plan should be specifically designed to meet their needs and preferences.

Remember, creating a buyer persona is optional but can help you understand your target audience more clearly and create a more effective sales promotion plan that speaks directly to them. By properly identifying your target audience, you can ensure that your promotion is relevant and effective, leading to increased engagement and ultimately, sales.

In Summary:

• Know your audience: Understand who your target customers are and what drives their purchasing decisions.
• Collect data: Use surveys, social media insights, and customer interviews to gather information about your audience.
• Analyse and identify: Pinpoint common demographics, behaviors, and preferences among your customers.
• Consider language and location: Account for geographic information and spoken languages to improve targeting.
• Create a buyer persona (optional): Humanise your audience by crafting a fictional representation of your ideal customer.

Now it’s time to choose the type of promotion you want to run. There are many different types to choose from, including rebates, contests, sweepstakes, discounts, coupons, loyalty programs, and referral bonuses. The key is to choose a promotion that will resonate with your target audience and help you achieve your goals.

• Determine the offer value: Set the value of your offer. You want to make sure that it is substantial enough to attract attention but not so large that it hurts your bottom line. It is always worth checking out your competitors’ offers to ensure that you are on a par, if not better!
• Establish offer terms: Define the duration, redemption method, and limitations clearly. You want to avoid any confusion that could potentially turn off your audience. Remember, clarity is key to successful promotion communication – read our post, ‘Clarity in Promotion Communication: Lessons from ‘Pepsi, Where’s My Jet?’ to learn more.
• Get creative: If you’re aiming to increase average order size, why not offer customers a reward for reaching a certain spend threshold? Or perhaps a loyalty program that incentivises customers to keep coming back for more? Don’t be afraid to think outside the box too, for example, you could partner with a charity and donate a portion of each sale to the cause or create a challenge that encourages customers to share photos or videos of themselves using your product. The possibilities are endless – all you need is a little creativity to make your promotion stand out from the crowd.

Now that you have selected the type of promotion you want to run, it’s time to craft your key messages that will get your audience excited and motivated to act.

Your messaging should be aligned with your brand values and clearly communicate the benefits of the offer. To grab attention, consider using attention-grabbing headlines, strong calls to action, and compelling visuals. Make sure to highlight any unique features or aspects of your product or service that make it stand out from competitors.

Positioning is also crucial in the success of your promotion. Determine where and how you will promote the offer, whether it’s on your website, social media, email, or other channels. You want to make sure the offer is easily accessible and visible to your target audience.

In Summary:

• Align with brand values: Ensure your messaging is consistent with your brand identity and values.
• Highlight benefits: Clearly communicate the advantages of your promotion to your audience.
• Use attention-grabbing elements: Employ catchy headlines, strong calls to action, and compelling visuals.
• Showcase unique features: Emphasise aspects that differentiate your product or service from competitors..
• Optimise visibility: Make your promotion easily accessible and visible to your audience for maximum impact.

Now that you have your promotion and offer ready to go, it’s time to think about spreading the word and promoting it to your target audience. But how do you do this effectively?

First, choose the channels that are most likely to reach your audience. This could include social media, email marketing, paid advertising, or even influencer partnerships. Don’t limit yourself to just one channel; try different methods to see which one’s work best for you.

Next, make sure your messaging is consistent across all channels. This will help to build brand recognition and trust with your audience. Use attention-grabbing headlines and compelling visuals to capture their attention.

Timing is also key. Launch your promotion during a slow sales period to help increase traffic and sales. And don’t forget to track your results and measure the effectiveness of each channel. This will help you refine your strategy for future promotions.

Remember, promoting your sales promotion is just as important as creating it. With the right messaging and timing, you can effectively reach and engage your target audience, driving traffic and sales to your business.

In Summary:

• Select appropriate channels: Choose the marketing channels most likely to reach your target audience.
• Maintain messaging consistency: Ensure uniformity across all channels to build brand recognition and trust.
• Focus on timing: Launch your promotion during slow sales periods to maximise impact and boost sales.
• Track and measure results: Monitor the effectiveness of each channel to refine your promotional strategy for future campaigns.

As you’re getting closer to executing your sales promotion, it’s crucial to set a promotion budget. After all, you don’t want to end up in the red, right? But don’t worry, setting a budget doesn’t have to be stressful or complicated.

First, consider any past data available to help evaluate costs and determine your budget. By doing so, you can avoid any unexpected expenses and have a better idea of what to expect. When creating a sales promotion budget, you’ll need to account for both fixed and variable costs.

Fixed costs include expenses that do not change regardless of the level of sales promotion activity. These costs are typically related to the development or creation of promotional materials or activities, including creative development costs, market research and training.

Variable costs on the other hand, are expenses that change depending on the level of sales promotion activity and can include media advertising costs, sales commissions, direct cost of your incentive (more on estimating this below), shipping and handling and more.

Estimating the cost of your incentive

As mentioned, this is a variable cost, and it will be based on how many people actually claim the incentive – the redemption rate. For example, if you are running a traditional 10% off discount, you need to keep in mind that it represents 10% of 100% of sales, which you’ll need to fund with your budget.

But what about promotions where the customer needs to actively claim their prize, gift, or cashback? In these cases, not everyone will be motivated to claim, even if they are eligible. This means you can base your budget on a lower proportion of sales, giving you more flexibility in your spending.

You can also consider promotion insurance. This allows you to fix the price of your promotion, giving you peace of mind. Regardless of how many people have been reached, redeemed, and expressed interest in any promotional campaign, the costs remain the same.

In Summary:

• Use past data: Analyse previous campaigns to help evaluate costs and set a realistic budget.
• Account for fixed costs: Include expenses related to promotional materials or activities, such as creative development, market research, and training.
• Consider variable costs: Factor in expenses that change with sales promotion activity, including incentive costs, media advertising, sales commissions, and shipping.
• Consider promotion insurance: Fix the price of your promotion for financial stability and peace of mind, regardless of the number of redemptions.

Before launching your sales promotion, it’s important to conduct a risk assessment to identify potential challenges that may arise. This can help you to develop a plan to mitigate or manage these risks, ensuring the success of your promotion.

Here are some factors to consider during your risk assessment:

• Market and economic landscape: Consider any external factors that may affect the success of your promotion, such as changes in the market or economic landscape. Stay up to date with trends and your competition to ensure that your promotion is relevant and competitive.
• Competitors: Analyze the recent activities of your competitors to gain insights into how the market has responded to their promotions. This can help you to identify potential risks and opportunities for your own promotion.
• Lead times and resources: Assess your lead times and resources required to execute your promotion. Consider any potential bottlenecks or delays that may impact the successful launch of your promotion.
• Packaging and logistics: Ensure that all products, materials, and prizes are available and can be shipped in a timely and cost-effective manner. Consider any potential logistical challenges, such as shipping delays or customs clearance, and develop contingency plans to manage them.
• Legal and compliance: Ensure that your promotion complies with all applicable laws and regulations, including data protection and privacy laws. Develop proper terms and conditions for your promotion and ensure that your team is aware of all legal implications.

Once you have set your budget and determined your promotional channels, it’s time to plan out the timeline for your promotion. A well-planned timeline ensures that all the necessary tasks are completed on time, and that the promotion is executed smoothly.

Here are some tips for planning your promotion and activity timeline:

• Identify key milestones: Start by identifying the key milestones for your promotion, such as the launch date, the end date, and any important events or deadlines. Make sure to set realistic timelines for each milestone.
• Break down tasks: Once you have identified the key milestones, break down the tasks required to achieve each milestone. Assign deadlines to each task, and make sure they are achievable.
• Assign responsibilities: Assign responsibilities for each task to specific team members or departments. Make sure everyone knows their role and is clear on what is expected of them.
• Use a project management tool: Consider using a project management tool, such as Asana or Trello, to help you plan and track your promotion timeline. These tools can help you assign tasks, set deadlines, and track progress.
• Build in buffer time: Allow for buffer time in your timeline in case of unexpected delays or changes. This will help you stay on track even if something unexpected comes up.
• Review and adjust your timeline as needed: Your timeline may need to be adjusted as you encounter unexpected obstacles or delays. Review your timeline regularly and make any necessary adjustments to keep your promotion on track.
• Test your promotion before launch: Testing your promotion before launch can help you identify any issues or glitches and ensure that everything is working properly. Allow enough time in your timeline for testing and make any necessary adjustments based on the results.

Contributors and Responsibilities

Don’t forget about the behind-the-scenes work that is essential for a successful promotion. Here are some factors to consider, especially if your promotion is global:

• Customer service: Who will handle customer inquiries about the promotion? Are there any language barriers or time zone differences to consider? Make sure your team is prepared and properly trained.
• Legal implications: Proper terms and conditions must be created to avoid any legal issues. Laws regulating advertising and promotions vary by country, as do data protection and privacy laws. Be sure to have a plan in place to handle these matters.
• Translations: If your promotion will be offered in multiple countries, consider who will handle translating all promotional materials. It’s important to ensure that your messaging doesn’t lose its meaning in translation.
• Payments and currencies: If you’re offering cashback, how will you handle payments and different currency considerations? Be prepared to handle financial matters on a global scale.
• Logistics: Ensure that all products, materials, and prizes are available and can be shipped to each country in a timely and cost-effective manner. Don’t let logistics become a bottleneck for your promotion.
• Tax implications: Be aware of any potential duties and tariffs in different countries to avoid any surprises.

Example of a Sales Promotion Timeline: New Product Launch with Cashback Promotion

Objective: To generate buzz and increase sales by 10% for a new high-tech camera by offering a cashback promotion for a limited time.

Target Audience: Early adopters, tech enthusiasts and photographers

Promotion Offer: £100 cashback on all purchases of the new product made during the promotion period

Timeline:

Week 1-2: Planning

• Finalise the offer and budget.
• Set the terms and conditions.
• Brief the creative team on the promotion and start developing the promotional materials.
• Develop a landing page on the website or launch a dedicated microsite specifically for the promotion.
• Begin building an email list of potential customers to notify up the upcoming promotion
• Brief sales, customer service, resellers, and distributors on the cashback promotion.
• Set up systems for tracking sales and cashback claims
• Ensure that stock will be available to meet demand

Week 3-4: Pre-launch marketing activities

• Send a launch email to the customer database highlighting the promotion and product details
• Develop social media campaigns to promote the promotion
• Launch paid advertising campaigns on relevant platforms such as Facebook and Instagram
• Prepare a press release for media outlets

Week 5-8: Promotion Period

• Host a product launch event in-store or online with a demo of the new product and refreshments.
• Encourage customers to leave reviews of the new product on the website and social media.
• Monitor sales and promotion engagement, adjusting as needed
• Process cashback claims and ensure timely payouts
• Keep the buzz going on social media and other channels
• Monitor inventory levels and adjust promotion as necessary to ensure product availability

Week 9-10: Post-Promotion Period

• Conduct customer feedback surveys to gather feedback on the promotion and the product
• Analyse sales and engagement data to evaluate the success of the promotion
• Evaluate the ROI and overall effectiveness of the promotion
• Prepare a report summarizing the promotion’s performance and make recommendations for future promotions.

Weeks 11-12 – Post-Promotion Marketing Activities

• Send a follow-up email to customers who took advantage of the promotion, offering additional product information and discounts on related products.
• Begin planning for the next promotion or marketing campaign based on the findings of the evaluation report.

It’s time to launch your promotion! Keep in mind that launching your promotion is just the beginning. It’s important to monitor your promotion closely and track your progress towards your goals. You may need to adjust your promotion strategy based on customer feedback and other factors. Ensure you pay close and careful attention to the early results to you can react if necessary.

During your promotion, right through to the end, the final step is to evaluate effectiveness. You should compare your actual results to the goals you set in step one. This will help you evaluate the return on investment (ROI) of your promotion, and identify areas for improvement in future campaigns.

To track and measure your promotion’s results, consider the following metrics:

• Sales: Monitor sales during the promotion period, as well as before and after the promotion. This will help you determine whether your promotion has had a positive impact on sales, and by how much.
• Customer behaviour: Observe any changes in customer behaviour during the promotion period. For example, are customers buying more frequently or in larger quantities? Are they more likely to return to your store or website?
• Website traffic: Track the number of visitors to your website during the promotion period, as well as any changes in website traffic sources. This will help you determine which channels are driving the most traffic to your website.
• Social media engagement: Monitor engagement on your social media channels during the promotion period. This includes likes, shares, comments, and mentions. This will help you determine how successful your social media campaign has been.
• Customer feedback: Collect feedback from customers who have participated in the promotion. This will help you identify any areas for improvement in future campaigns, as well as provide insight into what customers found appealing about the promotion.