Retail Marketing Hacks Top Brands Use To Boost Revenue
Very few of us consider ourselves to be easy targets when it comes to the retail marketing tricks of large scale retailers. Especially considering most of us have been in the retail game for a couple of years now.
But whether you like it or not, there are almost certainly a number of times where you’ve been persuaded into buying a product or spending more on an item or two than you may have initially intended. It’s all part of smart marketing ploys that retailers everywhere put into practice in order to boost sales.
Retailers often use savvy marketing tactics to help boost sales.
As a retailer yourself, while you may or may not be interested in implementing a few of these persuasion strategies, it’s vital that you’re aware of how these retail marketing hacks are used by the best of them.
5 Marketing Tactics To Boost Revenue
1. Product Limits Per Customer
You’ll probably come across this type of pricing at stores that are selling a product on sale: “Limit 3 per customer.” When you see this signage, you’ll probably think, ‘Hmm, this is a rare sale. It’s so cheap that people are going to buy them by the hoards. I should probably grab a few.’
This is a smart psychological tactic that retailers have used to their advantage to entice consumers to buy more than they probably would have planned on in the first place.
2. The Decoy Effect
Also referred to as ‘asymmetric dominance,’ the decoy effect has been around for a while. Basically, when customers are undecided between choosing between Option A (the more expensive version of a product) and Option B (the least expensive version of a product), throwing in Option A- (slightly cheaper than Option A) will boost the odds that Option A will be picked.
Let’s say you’re selling speciality coffees. Option A is a large coffee priced at $3 per cup, while Option B is the small size that’s priced at 75 cents per cup. Customers will most likely go for the small since it’s so much cheaper, given the difference in size. But if you add a medium coffee and price it at $2.50, most people will buy the large simply because they’ll think they can get the larger size for a mere 50 cents more than the medium.
This ploy has been used by retailers everywhere in an effort to boost sales of higher-priced products by coming up with another version of the same product just to make the more expensive variant appear more cost-effective.
3. Buy One Get One . . .
What retailer wouldn’t want to see their customers spending more at their establishment? Adding some incentive to buy more items can be done by advertising offers such as “Buy One Get One Free,” or “Buy One Get One 1/2 Off” for a variety of products. This tactic is so effective that plenty of businesses have used it at some point in their retail marketing campaign.
Retailers are not about to hide the amount consumers could potentially save, either. They’ll gladly advertise the percentage you’re saving off the full price, or the original price of the product sold on its own. Businesses in the realm of retail know that customers need to feel as though they’re getting a great deal without having to put too much thought into the purchasing decision.
4. Massively Slashed Prices
Customers will certainly have their attention grabbed when they see a product that’s being advertised at a huge discount. You’ve probably seen this yourself – a product is accompanied by a sign with large, block letters showing a drastically reduced price, along with the original priced crossed out.
Many times this product may be an older model, or it may be a product that was sold long ago at a higher price and is now being sold at a massive discount after the big marketing launch ended. While this could be beneficial for the customer if he or she missed out on the product the first it came out, it’s also a sneaky tactic that retail marketers frequently use to rake in the sales on an older product that’s no longer in high demand.
5. Limited Quantities Left
Creating a sense of urgency is a great way to compel consumers to act on impulse and by right now so they don’t miss out on a good deal. In order to get you to act quickly, marketers will claim that they only have a limited amount of quantities available at the discounted price they’re offering.
Whether this is true or not is something only the retailer will know. It could be that there really was a limited number of Holiday Barbie Dolls available, for instance, or it may have been a retail marketing ploy to get consumers to purchase by capitalizing on the rarity factor that it might not be available tomorrow.
Supplement Your Marketing Tactics With a Customer Loyalty Program
While a loyalty program doesn’t involve tricks or hacks to fool customers, it can massively increase per store spend when used right. With today’s top loyalty software, retailers can automate the sending SMS and email campaigns with upsell promotions to customers based on the products they’ve bought in the past.
Savvy business owners know the importance of implementing a loyalty program that rewards customers appropriately, and manages data analysis to gather pertinent information about buyer behavior. At the end of the day, a loyalty program is an essential part of any retail business’s marketing campaign.
If your business has yet to integrate a loyalty program into your overall marketing strategy, there’s no better time to start one than the present. And The Loyalty Box can help.
You’ll have your very own tailored customer rewards program developed and put into action to help attract new customers, and retain the ones you’ve already got under your belt.
Getting your own loyalty program has never been easier. Sign up for a free trial with The Loyalty Box today!