When Is The Best Time To Run A Sale?
Running sales is tough.
It takes time and effort to get customers interested in buying something.
Then you have to convince them to buy from you instead of someone else.
And finally, you have to close the sale.
Sales are tough.
But running sales doesn’t have to be.
It can be fun.
Here are 4 tips to help you run more effective sales.
4 Tips On When To Run A Sale
Tip 1 . Know why you’re running a sale.
This will help decide how much to discount, for how long and who to involve (which we’ll explain later).
But here are a few reasons you might consider one:
– If your competition in your industry is running a sale on their products, you may want to run a sale, too.
Consumers will be on the lookout expecting to get deals.
– You need to move stock that hasn’t sold that season so you can avoid the increased storage costs or a logistical nightmare trying to dispose of extra stock.
This is particularly relevant for fashion retailers during the changing seasons when they’ll need to make room for new incoming stock.
– Sales have been weak lately and you need more cash flow.
– You have a new, upcoming product and you want to gauge customer interest and see what they think.
Tip 2. Don’t go on sale too early.
During a sale, people are looking to get a good deal, and you’ll likely see a bigger spike in orders if what you’re selling is on sale than others offering similar options.
Unfortunately, if you sell in a market where brands are doing something similar, you may end up cannibalizing each other’s customers, and no one will ultimately benefit.
Instead, hold sales closer to the end of the season or the beginning of the next, when demand is high, you’re fresh in customers’ eyes, and you won’t risk sending a negative message about your brand.
Tip 3. Plan for the unexpected.
Include a yield management policy in all marketing campaigns.
By selling excess stock, the fulfilment team can get a head start on fulfilling new campaigns, without relying heavily on overtime or hiring temporary employees.
Current consumption isn’t at predicted levels due to global factors putting financial pressure on consumers.
There’s deeper discounting across all industries, but they continue running frequent sales despite the risk to their company’s reputation and finances.
They undermine their pricing strategy and “full price” won’t be perceived as worth its value.
Customers wait for them to slash costs before buying, leading them to have regular recurring revenue as customers swing to our side only when we truly need it.
However tempting it is to go on sale for a quick cash flow win, the strategy needs to be explicit about when and how often to discount — then stick to it.
Making sure you have products that can never be discounted to all your customers is one way to regulate the perceived value of your entire range of products and services.
If your goal is to make more money, or perhaps to improve your customer retention, then you may want to target specific audiences with relevant messages.
To do this, you could create private sales for loyal customers for example.
Send out exclusive discount codes via email or run exclusive or early access sales for customers that are your biggest spenders.
Tip 4. Learn how to sell.
Selling isn’t what we’d like it to be: the polished salesman in a suit, the charming evangelist or the perfect product presented in a way that sears it into the mind of the consumer.
However, that’s the reality of selling — it’s not perfect.
The key is to scale up your sales operations in a way that doesn’t mess with your culture.
There are many different ways to sell your product or service, you can sell directly to your customers, you can sell to retailers or marketplaces that handle the transaction for you, or — as is increasingly common — do a combination of all three.
No matter how you do it, there are a few key best practices that will help you achieve your sales goals.
1) Ensure your customer experience across the customer journey.
This will help you retain customers and convince them to buy more products and services from you.
2) Employ automation.
The dreaded cold call is entirely avoidable with automation, such as smart email campaigns and automated follow-ups.
3) Personalize everything.
Personalization goes beyond just naming your company after yourself, but giving every customer experience unique touches unique to that customer.
4) Scale sustainably.
Don’t compromise on quality to drive scale.
There are many tried and tested methods for scaling your sales operation such as outsourcing and using call centers.
5) Show the value of what you offer.
Demonstrate how your product or service helps your customers and how it delivers value for them.
In particular, scaling sustainably is a priority for many companies.
Unilever, the consumer goods giant, recommends growing “slowly and carefully, keeping the local team central” — advice that echoes the advice of many larger companies.
6) Improve your sales using recommendations
Perhaps the simplest and most immediate way to improve your sales is to recommend your products to your customers.
People are eager to share products that they love with others and a positive customer experience can lead them to do so in a scalable way through channels such as social media.
Recommendations from real people are one of the most trusted sources of information about products in general.
Building a brand is a global endeavor nowadays.
More and more companies are international from the start.
If you are just starting, perhaps looking at an existing brand with a strong brand asset kit — including images, messaging templates, etc. — could benefit you.
An overall strategic approach to marketing and sales will yield the best results over time, rather than relying on one-off campaigns.
Whatever you do, do not threaten or intimidate people into buying your product.
Black Friday spam is not going to lead to happy customers or great results.
Please stay away from scare tactics and offers that you can’t keep.