Sales promotions do not work solely on the basis of discounts and rewards. There are powerful psychological concepts working behind these strategies and making them even more effective. As the primary goal of sales promotions is to encourage customers for making more purchases, it becomes important to understand what triggers the human mind to make a decision. And this is where human psychology comes into play. If you are planning to partner with a sales promotion services company to start a campaign for your brand, you should first understand how the psychology behind sales promotions works.
What are Sales Promotions?
Sales promotions are short-term marketing strategies aimed at boosting sales or attracting new customers. Brands use different sales promotion techniques, such as discount coupons, flash sales, BOGO deals, etc, to attract more and more customers and encourage them to make a purchase. The goals of sales promotion campaigns can be different, but the major or end goal generally is to boost sales and revenue in a short period of time. Almost every brand is running a sales promotion in India to increase their sales or achieve other business objectives. However, a sales promotion campaign is successful only when it is designed carefully and managed in the right way.
Psychological Aspects Behind Sales Promotion Programs
Sales promotions are very powerful. A study has shown that over 80% of consumers are looking for some great deal or discount offer while making a purchase. This is due to the psychological impact that sales promotions create on the human mind. Here are some most important psychological aspects behind sales promotion strategies:
1. The Fear of Scarcity
Most successful sales promotions use the power of scarcity. Studies suggest that scarcity-based sales promotion strategies can boost a brand’s sales by up to 30%, which is definitely a good number. By combining your promotional techniques with a sense of FOMO, you can make your sales promotions campaigns even more effective. When customers sense a fear of scarcity, they are more likely to make a quick buying decision that they might not have planned. Some examples of scarcity-based promotions include limited-time offers, limited stock offers, etc.
2. The Happiness of Rewards
Rewards are very powerful motivators and have a significant impact on human brain chemistry. Offering valuable rewards to customers motivates them to make more purchases in order to earn more rewards. This is why rewards-based loyalty programs have been found to increase customer retention by 12% to 18%. By offering some sort of reward after every purchase, you can not only encourage loyalty but also boost repeat business and establish an emotional connection between your customers and the brand.
3. The Emotional Connection
Another psychological concept is related to establishing an emotional connection with your customers through sales promotions. When you run effective sales promotion campaigns on social media and focus more on customer engagement, you are not just encouraging them to make a purchase, but also building powerful relationships with them. By running emotion-based campaigns, such as charity or mission-based promotions, you can connect with your customer base on a deeper level.
4. The Principle of Reciprocity
When you offer your customers some rewards or incentives after their purchase, they feel appreciated. A free gift or reward makes them feel that they are receiving something in return for the amount they have spent. As a result, they are encouraged to respond in a kind manner and feel more loyal to the brand. This is known as the principle of reciprocity. You give valuable rewards to your customers and they will offer you higher loyalty and more repeat purchases in return.
5. The Novelty Effect
Humans have the tendency to feel more satisfied and motivated when they experience something new. Whenever a human mind comes across something new, it releases dopamine, which is a chemical that is responsible for making humans feel good. This is what gamification-based sales promotion programs can do. Sales promotion agencies in India, such as RewardPort, run such sales promotions that are new and exciting for your customers to participate in. These techniques create a novelty effect, which your customers crave for.
Achieve Your Business Objectives With The Right Sales Promotion Services
Combining sales promotion techniques with gamification strategies is one of the best ways to make your marketing campaigns successful. For this, you will need to partner with some experienced company like RewardPort, which is one of the top sales promotion agencies in India. Their team of marketing experts analyzes your business details, customer behaviors, etc, in order to come up with the best strategies for your brand. Whichever sales promotion services company you partner with, make sure that you keep the above-mentioned psychological aspects in mind and run your campaign accordingly.