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Effective Promotions

Quinn Halford -- Gifts and Dec, 9/14/2010 11:48:51 PM

Quinn HalfordThe basics of retailing are universal, subject only to tweaking to address specific markets or store categories. Which is why the words of James Burke, a senior level retail executive with more than 25 years experience in Ireland, were as familiar to an American's ears as they were to his audience of Irish retailers at Showcase Ireland, the creative expo held earlier this year in Dublin.
     Burke was featured in a series of seminars held over the four days of the trade show, and he started out by saying,
Want customers to keep coming back for more? Promotions are the answer.
     Burke was talking about store promotions. Do the same promotions over and over and the results will be the same. He feels that retailers have lost a lot of their retailing skills because during the boom years of the past decade or so, customers just walked in the door. But that's no longer the case and it's time for merchants to hone or relearn their skills.
CREATE A PLAN
     The first step to Effective Promotions is to establish a promotional calendar. Each month should have its particular promotion that can be based on price, theme, special event, new product introduction or other "hook."
     Note that effective promotions don't have to be price-based. Price is important, but more important today is value. Your customer will return time and again if they sense they are getting value for their money. They won't return if they think you're overpriced.
     Today's customer is more likely to come into your store with a set amount of money to spend, say $10 for a small gift. They don't want to spend $12. That is why the smart retailer won't promote a "free" extra gift with the purchase of a $12 item. Instead, the smart retailer will offer the $12 item at a promotional price of $10. The customer senses value and leaves satisfied.
Insanity is doing the same thing over and over and expecting different results." - attributed to Albert Einstein
MERCHANDISE BY PRICE
     In line with that, you should also have different levels of pricing that the customer can understand immediately. Group separately selections of gifts in the $10, $20 or $50 range and put up appropriate signage. Again, the customer who comes in with a set amount to spend can quickly identify what her money will buy and she will sense value.
     Communicate your promotions in-store with good signage flagging limited editions, new products or award-winning products. At your next trade show, find out if any of your buys earned an award for best product or some other category.
Then promote that award to your customers who'll feel the product has added value.
     Of course, you have to make sure your promotions aren't confined to the four walls of your store. Make sure the word gets out through emails, mailings, leaf lets, window signage and other avenues that have worked for you before.
     In summary, Burke lays out five rules to help establish your promotional calendar.
     1. You can't ignore price, but it's not about price alone.
     2. Be creative. What are you known for?
     3. Communicate your promotions as strongly as you can.
     4. Be sure to vary your promotional offers.
     5. Review your promotions.
     The last point is important. Just because a promotion worked once, don't repeat it immediately. Otherwise, it's back to doing the same thing over and over and ....

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