Create a Successful Apparel Retail Promotional Strategy
It's the end of the year and retailers everywhere are in promotional mode. The next couple of weeks is the best time to move through inventory and increase sales to set the new year off right for new seasonal launches. The best way for small businesses to stay competitive and relevant in this noisy time period is to build and execute a strategic promotional plan.
A promotional strategy is a blueprint of how to offer a sales driven incentive to your customers and includes the marketing process to achieve it. It should be built to target a revenue sales number for a time period or focus on moving through inventory of a slow selling styles.
As you build your promotional strategy start by asking yourself these few questions:
Who is your target audience?
As a business owner, you should define the types of customers the campaign will target so you know how to tailor the messaging for that consumer. Are you trying to convert first-time buyers? Do you want to bring in more repeat customers? Do you want to increase the average order value in each transaction? Once you have defined the target customers you are ready to define the message.
What is the ideal promotional message?
There are different marketing tools you can use for each segment of your customer base. If your goal is to convert first-time visitors to your site, try offering a 15% discount on their first purchase. This helps lower hesitation and the risk factor in trying out a new brand for the first time.
BOGO offers like Buy One Get One 25% off are often used to increase repeat business. Your existing clients already know what they like and may have another piece in mind. A BOGO promotion can help motivate customers to make their purchase. Companies also offer discounts to followers who tag them on social media which in turn incentivizes additional orders and increases exposure to more potentials customers.
Most retailers also use promotions to increase their AOV (average order value = total sales revenue / number of transactions) to significantly impact sales. Here is an example - if your AOV is $125, you could promote a 20% discount on orders over $175. Each transaction using this promotion would increase your AOV at least $15!
Make sure to think through the impact to your profit margin, revenue and inventory position before implementing your strategy.
How will you market your promotion?
As you plan out the touch points for the promotion, focus on an omni-channel strategy. Aligning your promotion across all channels will keep the message concise and help minimize customer confusion. Make sure the same graphics, copy and details are used in all of your social media posts, email campaigns and on your site. Help direct your customers to the promotion by avoiding mixed messages or promotional offers.
Building a strategic promotional plan can help you stay competitive in a busy marketing climate and regulate your inventory levels. The key to executing a successful campaign is to first define the target customer, customize the promotion for this segment and use omni-channel marketing tactics.
Good luck! Don’t worry, you’ve got this!