Running a special offer has pros and cons. And as a business owner or marketing manager, it can be tricky to know whether or not special offers are worth it.
In this blog, we’re going to outline the benefits of special offers for your business, and highlight the downsides that may occur when running special offers.
Are Consumers Looking For Special Offers?
Regardless of whether you sell your products and services in-store or online, studies have found that consumers are more likely to buy if there is a special offer.
A survey carried out in 2018 found that more than 90% of people surveyed actively look for a special offer when shopping online. If you have an online business or shop, it may be worth tweaking your on-site optimisation to make your special offers easier to find in search engines.
The survey also found that 80% of people are more likely to buy from a brand they’ve never used before if there is a special offer. Similarly, more than 66% of people have made a purchase they were not planning to make simply because they came across a special offer.
The Benefits Of Special Offers
So, it’s clear that consumers actively seek special offers. But does that make special offers beneficial to your business? We think so. Although admittedly, it often depends on the type of business you are running. Here are the most common benefits of running special offers:
Increase Brand Awareness And Reputation
Running a special offer is a great way to increase brand awareness. Whichever way you decide to market the offer, whether it is on social media or via paid ads, offering money off will attract potential new customers.
And when a new customer takes advantage of your special offer, they are more likely to tell other people about it and write positive reviews!
Similarly, running a special offer is a great way to remind existing customers of your business, and may tempt them to buy again. It’s also great when remarketing (targeting people who have previously shown interest in your business/products/services).
The special offer may be the push they need to try out your product/service. If they like it, they will hopefully become loyal customers who continue to purchase your products/services even when they return to full price,
Help Launch A New Product And Create Demand
Creating demand for a brand new product can be challenging. Even existing customers who purchase your other products may not feel comfortable spending their hard-earned cash on a new product.
Launching the product with a limited time offer can be the incentive they need to try out the new product. It can also increase awareness around the new product.
Helps Get Rid Of Old Inventory
It’s one of the oldest tricks in the book. And is particularly popular with retail and eCommerce businesses. For years, businesses have slashed prices in an effort to get rid of old/seasonal stock and free up some room for new inventory.
And of course, special offers increase sales. If you need a quick way to boost sales or you are in danger of missing your sales targets, running a special offer will help.
Boosting sales through special offers is far more effective if the special offer is short term and irregular. If you are regularly offering special offers, customers won’t be willing to pay full price for your products/services.
Special offers can also help increase the sales of non-sale items. Think about it. When you have an offer, you have more people in your store (or on your website). Whilst they are there, they will browse your whole stock. Or they may see something they love the look of and buy it, even though it isn’t on sale.
Cons Of Special Offers
There are downsides to running special offers. However, it is worth noting that downsides are more prevalent if businesses make mistakes when running special offers.
- It may demonstrate a lack of confidence – if you create a special offer, it may give off the impression that you don’t have confidence in your product/service and don’t expect it to sell at full price. It can cause customers to wonder whether or not your product/service is worth its value.
- It may set an expectation – as mentioned previously, if you regularly run special offers, customers will expect to pay lower prices. They are then reluctant to pay more for the same product/service.
- It may cut into your profit margins – this one is self-explanatory. If you are not selling your products/services at full price, you will likely cut into your profit margins.
Although there are downsides to running special offers, many of these problems can be avoided if you carefully plan and execute your special offers in line with your marketing efforts.
Get In Touch
Need help implementing special offers? Want to increase sales and boost brand awareness? We can help! GrowTraffic is a digital marketing agency that specialises in SEO and content marketing. We can help you grow your business through digital marketing.