A Retail Marketing Plan - Promotion Methods
Planning for how to promote your new retail business does not begin just when you
open your doors to customers, but as you start to flesh out the idea for the idea itself. The marketing plan and its promotion strategy are an essential part of the concept of how the business will work and succeed. Be creative when developing promotion tactics that work for your store, but don't forget tried-and-true methods like these.Coupons
Coupons, whether distributed in magazines, newspapers, direct mail, or street hand-outs can drive some sales to your store. The cost of coupons is the revenue you've lost by charging lower price on some items you would have sold anyway as well as the expense of coupon creation, distribution, and processing. To be successful, coupons must either pay for themselves through increased sales of the discounted items, or by introducing new customers to the store who then find other, full-price items to buy. Although most everyone likes a deal, the effectiveness of coupons can wear out at a certain point. For example, using coupons to create long-term customers is tricky, as many of the same people who are attracted by coupons will go to your competitor as soon as they send out a coupon.
Holding Sales
Holding a specific sale, where certain items or all items are marked down, is a similar method. You must first use advertising to let customers know about the sale. You must have a system to mark items for sale and train the staff to recognize the rules of the sale. This is a lot of work, but is a great way to try to sell off a glut of inventory that has been difficult to move. Ideally, you will move out these clearance items while introducing your store to new potential customers who will decide to return again when the sale is over.
Loyalty
Coupons and sales can lead to some quick revenues, but, without a focus on customer loyalty, these revenues can peter out over time. Loyalty programs often consist of a loyalty card or code for a customer, whose purchase amounts are tracked and summed until they reach a certain point when they earn the bonus of a free item, store credit, or a discount. Although this method, like coupons and sales, involves encouraging purchases by charging less than full price overall, this also encourages a customer to buy more and to return more often. Customers will feel they have an investment in your store which is lost if they switch to a competitor. They may go out of their way to use your store because of this carrot of a future bonus. Take time to design a loyalty program that is right for you, if you sell the type of products which should encourage repeat visits.
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