In-store promotion is a powerful marketing strategy that can help retailers attract customers to their physical stores and build brand or product awareness. It is a type of marketing that takes place in brick-and-mortar stores and helps promote products and deliver a great customer experience to shoppers. In-store promotions are not just focused on reducing prices, but also on increasing sales by providing customers with discounts, coupons, additional premiums, and other incentives. In-store promotions are a highly effective marketing tactic designed to attract customers to your physical store and build brand or product awareness.
Consumer goods brands invest more than 20% of their total revenue in in-store promotions, and they can help you increase sales by 20%. For example, when customers receive coupons for 10 purchases, they get a 50% discount for a certain product line from your store. In-store marketing is essential when it comes to fast-moving consumer goods, as it helps differentiate your brand from the competition. Depending on the type of product you sell, you can offer different discounts - for high-end products at a high price, you could easily offer a 10% discount and people will spot it right away.
Considering the COVID-19 crisis, customers want to buy the bare minimum, so they focus on essential products. If your brand is in the premium or leisure section of the store, your sales may be dropping. That's why it's important to adopt a good in-store advertising campaign to differentiate yourself from the competition. When it comes to measuring the success of an in-store promotion, incremental revenue and marginal return on investment are the two key metrics that can be extended to each promotion family that we consider most valuable.
To find out what types of promotions work and which ones are a waste of money, you should calculate the standard ROI (return on investment). In addition to discounts and coupons, you can also use shop windows to tell a story by incorporating seasons and what you know will uniquely attract your customers to sell not only products, but also a lifestyle. You can also host events and use signs in your store to provide customers with a personalized experience during their shopping session. Branded gifts will remind your customers of your brand and can even spark conversations about your store with others.
Combining online promotions with in-store promotions will have an even greater impact on your business.