TEN OF THE BEST SALES PROMOTIONS - publish

[Pages:32]TEN OF THE BEST

SALES PROMOTIONS OF ALL TIME

2 - Introduction

TABLE OF

CONTENTS

3 - Case Study 1: Starbucks

7 - Case Study 2: NuFACE

10 - Case Study 3: American Apparel

12 - Case Study 4: JewelScent

15 - Case Study 5: John Lewis

18 - Case Study 6: Kellogg's/ Star Wars

20 - Case Study 7: Verizon Wireless

23 - Case Study 8: Pretzel Crisps

26 - Case Study 9: John Lewis (again)

28 - Case Study 10: Pepsi

31 - Conclusion

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INTRODUCTION

We've heard it all before...

"If you run the right sales promotion, you're gonna see the dollars roll in!"

You've probably read countless blogs and sources that list the slickest offers, the best discounts and the most unique sales props. But who needs a long list of tips that might or might not actually work? Any average Joe can tell you to run a couple of `10% off' specials and customers will come running. Your inventory will be depleted in no time. But we all know it's not that simple. Every retailer, product and buyer is different. Every store owner has their own pain points so a one-size-fits-all list of sales promotions isn't gonna cut it. But what's the one thing that we all do have in common? More sales. "How can I get more sales? How can I improve my bottom line? Are there sales promotions that I can implement that will help me do that?" To get the answers to those questions, you need to know what is actually working for other retailers. It's true that you need to get creative. You have to come up with a unique campaign and strategically market it to your audience.

"So long as new ideas are created, sales will continue to reach new highs."

? Dorothea Brande

But how?

We've put together this eBook with case studies of the 10 most successful promos of all time to give you plenty of inspiration for your next promotion.

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CASE STUDY 1

STARBUCKS

Company Profile

Introducing customers to an impressive menu of gourmet coffee in a living room style setting, Starbucks changed the scene of coffee forever when it burst onto the scenes in 1971. They employ 182,000 people, have stores in 21,536 locations and have a revenue of $14.89 billion.

Sales promotion: The loyalty program

Did you know that it costs you 7x more to acquire a new customer than it does to keep the ones you've already got?1

A loyalty program is a great way to show your customers that you truly appreciate their business.Typically, a loyalty program works by offering your customers a freebie, once they have spent a certain amount of money in your online store. So naturally, a loyalty program will provide an incentive for customers to keep shopping at your store.

Starbucks has always gone against the grain, and their loyalty program is no exception. It's highly regarded as one of the best loyalty programs of all time, so let's take a look at what we can learn...

How does it work?

Every time a person makes a purchase, they collect a star (point) on their loyalty card. Once they've collected a set amount of stars, they are then entitled to a number of coffee related rewards.

Customers can collect stars using a physical card, or via the app, and stars can be added from their coffee shops, or from products sold in local retailers. The loyalty program also comes in two tiers, depending on how often you shop at Starbucks.

The Results

In the first quarter of the loyalty program launch, Starbucks2 saw a revenue increase of 11% which took profits to $3.6 billion.

1. 2.

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CASE STUDY 1

STARBUCKS

What can we learn?

What are three aspects of the Starbucks loyalty program that we can learn from?

Make it accessible

Typically a coffee shop loyalty `card' is exactly that ? a piece of cardboard that is likely to get lost in your wallet and most definitely wouldn't survive a rain-shower. Sure you can opt for a card, but you can also sign up to their app to pay for purchases and collect stars using your mobile device. In a multi-device world, this is certainly something worth noting. According to this report from BI Intelligence, the Starbucks app accounts for 15% of the US franchise sales and receives over 6 million transactions a week!

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CASE STUDY 1

STARBUCKS

Make it exclusive

Exclusivity is the secret sauce to a successful loyalty points program. People want to feel like they are getting something extra, and they want to know that they matter to you.

"Pretend that every single person you meet has a sign around his or her neck that says, make me feel important. Not only will you succeed in sales, you will succeed in life."

- Mary Kay Ash.

Starbucks offer customers an exciting chance for customers to collect more stars and achieve `gold level' status. That person will then receive a gold card and can enjoy further perks including free drinks, syrups, custom offers via email, and more.

Make it available across other stores

As Starbucks sell a number of their products in various retail stores, their customers are not limited to just collecting stars within the coffee shops. This goes to show that Starbucks understands the importance of multichannel marketing, in that every channel should be aligned with the same message, and it helps to motivate more purchases across their entire brand.

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CASE STUDY 2

NuFACE

Company Profile

The family-owned business, NuFACE, launched back in 2005. It's an anti-aging skin care company that offers a selection of cost effective treatments for women looking to treat their skin.

Sales Promotion: The Free Shipping Deal

Free shipping really can help you attract more people to your store. For the customer it's a hassle-free buy and they don't have to pay any more than the product price. But NuFace had no problem in attracting visitors to their site. Quite the opposite in fact... When they hired marketing agency, Red Door, to help improve conversions, the agency found that visitors were interested in the NuFACE products, but visitors would come to a standstill at the checkout. With an average cart abandonment rate of 68.07%, you'll probably agree that it's one of the most frustrating statistics to see. So why does it happen? The visitors on NuFACE had a clear interest in purchasing their products, so then why leave right at last minute? Forrester Research found that shipping costs are the number one reason why people abandon their carts. And in this case it would seem that shipping costs held the key to NuFace's problems...

What did they do?

Red Door implemented A/B testing on the site to see if changing the terms of the free shipping, would push people to buy.

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CASE STUDY 2

NuFACE

A/B testing is one of the best tools that you can use to improve your conversion rates. It'll give you the power to test two options to see which one gets the better results. In fact, President Obama raised an additional $60 million for his campaign, using A/B testing, so it can definitely have a huge impact on the success of your campaigns. Check out this study from NuFace to see how they used A/B testing. They sent 50% of their visitors to a homepage that looked like this:

And the other 50% to their homepage with a `free shipping over $75' incentive.

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