Are promotions effective?
Promotions seem to be one of brands’ favorite ways of catching their potential consumers’ attention; it’s strange to find a brand that doesn’t launch a promotion from time to time. Are they really effective, though?
To be fair, the truth is that promotion strategies are actually very effective. They put products on the spot, they are able to position a brand as a reference and, obviously, they persuade consumers to buy the product in particular.
They are a very useful resource and, moreover, we must take into account that, given that the vast majority of the brands use them, if we don’t, we risk becoming obsolete compared to our competitors, no matter which sector we talk about.
How to design them?
Establishing our promotion strategies is not easy whatsoever; we need to know well our target first. Will the prefer a discount? A bigger amount of product? A free complementary product?
We should also be sure that we will be able to recover the investment made. Will it be worth it?
Lastly, we obviously have to choose properly the product or products we will promote and design a good communication strategy to catch our target’s attention. We must think thoroughly on the price point or conditions the promotion will hold and choose the placement wisely; if the product is not visible enough or the price is not attractive, the promotion may not work.
A useful tool: sales force automation
What is it?
An SFA or sales force automation tool is a software especially made to optimize the whole commercial process. With a simple app we can have full control over what happens in every point of sales of ours; information on our clients, their orders, their agreed prices… and, of course, over their promotions.
Sales force automation functionalities
Let’s explain some of their functionalities focusing on how can they help us with our promotions, the subject in question. If you want to know more about sales force automation as a whole, read here!
First of all, it’s important to establish a good commercial strategy, a good marketing one and, within this last one, a promotional resources strategy. As we have discussed, correctly defining the promotion is crucial.
A sales force automation tool, being an omnichannel, allows every area in the company to have access to the relevant information it contains. This way, the general strategy can be established jointly, and the promotion one as well. This is not only positive to foster team cohesion, but it also increases the chances of the promotion being successful.
We can also use all the information we are given about every client or retailer to adapt our actions as much as possible; choosing between a local or global promotion is important as well, and that depends on the point of sales very much. We’ll have access to their promotion record so we can see how have the previous promotions worked so far, foreseeing any unexpected problem.
The tool is called, sales force automation, and it optimizes the commercial activity, including promotional actions, as it makes them visible.
Cutting edge technology
These types of software generally include incredibly useful tools, some of them being cutting edge technology. A good example is image recognition, revolutionary if applied to the retail sector.
Data collection or point of sales’ audits become as easy as taking a picture. With this tool, the commercial agent can forget about collecting the data manually, as only with taking a picture of the shelf, the picture is sent to the cloud, analyzed automatically and there we have the information available in our system.
This works the same way for promotions; with a picture we’ll have access to all the relevant information about the retailer’s promotional record.
Lastly, we’ll mention that these sale force automation tools allow us to introduce our objectives and KPIs into their system to follow up our performance and results. They automatically calculate our KPIs in order to offer us valuable information about our activity.
This allows us to improve our next promotions, as we will be able to see what went well and what went wrong in our last ones. We can take both preventive and corrective decisions around that data and compare our output to our competitors, as well as see which promotional actions are they doing.
Improve your promotions with sales force automation
As you can see, SFAs or sales force automation tools have a lot to offer when defining promotions. If you are worried about your promotions’ performance and your company would also appreciate an increase in their sales and efficiency rate, do not hesitate: an SFA is the answer!