Businesses use various marketing communication tools to reinforce their brand message and promote sales. It includes direct mail and catalogs, email campaigns and newsletters, trade shows, webinars, and seminars. Although companies can select from different marketing communication strategies, there are three techniques that they must consider to implement: advertising, social media, and sales promotions.
Advertising and social media are excellent marketing communication tools to reinforce a business’s branding; however, sales promotion is considered the most effective tool for increasing sales and stimulating revenue. Hence, many retailers use this technique most often than not.
Besides the increase in sales, sales promotions activities, such as flash sales, special offers, coupons or discounts, and giveaways or free samples, also boost customer satisfaction, allowing retailers to retain existing customers and acquire new ones.
However, as technology continues to progress, sales promotion methods are also evolving. Businesses are now taking advantage of technological developments, with some using a self-checkout system, which allows customers to process their purchases. Installing a self-service cash register does not only give consumers the freedom and independence to process their items. It can also let customers see promotional information on the big screen of the cash register.
Meanwhile, others are taking advantage of the development of electronic shelf labels. These shelf labels have an automated price updating system; hence, businesses will save on labor and time from manually replacing paper price tags. Additionally, retailers can manage and monitor store shelf level pricing from a single location.
Electronic shelf labels that support NFC (Near-Field Communication) and LBS (Location-Based Service) features, such as SoluM’s Newton, can be used by retailers to analyze customer shopping patterns. Consequently, the NFC feature links customers’ mobile phones to the company’s online website and lets them download a digital coupon or receive additional product information. On the other hand, the LBS feature shows the location of promotional products, which typically is color-coded according to the promotion type.
Like the self-service cash register, electronic shelf labels can also help make a business’s sales promotion stand out from the rest of their competitions. It can be a useful price management strategy that will invite more customers, increase sales, and reduce penalties from price discrepancies.
This infographic from Solum details why Newton is the key to a business’s sales promotions.