There are numerous ways to boost your sales. When inventory grows more slowly than anticipated, businesses employ discounts as a short-term, effective approach. Contrary to popular opinion, not all discounting strategies are created equal. Buy One, Get One (BOGO) has recently gained popularity among retailers, despite the fact that typical discount offers are still effective. We explained how and why BOGO deals can boost your sales.
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Free or discounted by a percentage?
It goes without saying that consumers enjoy receiving free goods. Dan Ariely, a researcher in behavioral economics, claims that customers frequently overvalue the advantages of “free” goods, especially when contrasted to inferior goods that are offered at a lower cost.
In the retail sector, we frequently witness this happening. With the exception of France, sales increased significantly after Amazon started offering free shipping in certain regions of Europe. Because shipping was wrongly made to cost 1 franc (about 10 cents at the time), rather than being free, France’s sales dropped behind those of the other nations. Customers believe that “free” is always preferable to discounts, regardless of how large they may be.
Advantages of “Buy One, Get One”
BOGO is a fantastic discount strategy to use when trying to attract customers. BOGO promotions have been very successful for major corporations like TOMS and Chipotle. Here are a few ways this strategy will help you.
Achieving Profitable Inventory Movement
Buy One, Get One is a fantastic tool that can assist you in getting rid of your less attractive inventory more quickly while also maintaining profitability. Suppose that you paid $2.50 for an item that you are selling for $10. You could sell one of them for $2.50 more if you offered a 50% discount on it. Now, if you were to offer the product in a BOGO promotion, you could make a $5 profit ($10 in sales minus $5 in cost equals $5). You can solve your problem of slow-moving inventory while maintaining positive cash flow by selling several things at once.
Better consumer response
BOGO is beloved by both merchants and customers. 66 percent of consumers said they prefer BOGO over all other discount promotions, according to research from AMG. A further finding was that 93% of consumers claim to have used BOGO deals at least once. Customers are more likely to participate in BOGO campaigns, according to research by Professor Priti Salvi of the S. V. Institute of Management in Kadi, because the products appear to be free and have increased value as a result of the promotion. With a Buy One, Get One deal, you may win the favor of consumers.
Guidelines for a successful BOGO promotion
A good Buy One, Get One bargain and a bad BOGO deal still differ, even though both customers and shoppers value a BOGO promotion.
Let’s look at some strategies you might use to differentiate your subsequent BOGO promotion from those of your rivals.
Make a target audience list
Once you’ve determined what you’re selling, it’s critical to understand your target market. BOGO might assist you in achieving one of the main retail objectives, cultivating a loyal consumer base.
Identifying a target audience is the greatest strategy for capturing the opportunity. Instead of attempting to appeal to everyone, having a target audience helps you focus your efforts and save time. You can effectively choose which products to display in your BOGO promotion after you have a target audience in mind. For instance, if you were promoting backpacks, students would typically be your target market, therefore you would aim to advertise on sites where students hang out. You can win over customers’ hearts and increase the effectiveness of a promotion by developing a target audience.
Make something urgent
A Buy One, Get One campaign requires a sense of urgency, just like any other promotion. You can encourage them to buy sooner by giving them a deadline for your BOGO discounts so they won’t miss out.
Retailers can utilize countdown clocks on an internet platform to display the sale’s remaining time. The clock might make a customer feel pressed to make a purchase because it indicates that time is running out.
Promote on several channels
You can promote your BOGO promotion on a variety of platforms.
You can go old school and promote your BOGO sale offline if you run a physical store or pop-up. In addition to plastering your business with flyers, you may utilize the layout of your store to promote your BOGO deal by making the best use of music, product displays, lighting, and even climate management to create the best possible shopping experience. Visual merchandising is a fantastic method for drawing customers’ attention to BOGO deals. Traditional online advertising offers many chances to advertise your BOGO promotion. You can advertise on websites that your target audience frequents by making an investment in on-site advertising. For instance, if you want to reach at the top, publish on-site adverts on forums and blogs dedicated to the sport.
Make use of social media
Retailers cannot afford to ignore social media in the face of its rapid growth. In actuality, two or more social media platforms are actively used by 52% of internet-using people. Your use of social media should change depending on your target market in order to match their usage habits. For instance, you should share your BOGO offers on Facebook rather than Instagram if you are targeting baby boomers.
Furthermore, you may use social media to address customer problems and collect feedback in addition to promoting your BOGO offers there. Customers who are happy with their purchases and post positive reviews on social media might generate free promotions. 57 percent of users who post a critical review or remark on social media said they expect a response from the brand. Ninety-three percent of them claimed that if the merchant didn’t respond, it would have a negative effect on their brand loyalty.
As 71 percent of customers who have positive social media service experiences with brands are likely to suggest it to others, actively using social media to engage with customers and promote sales can be advantageous.
Update your BOGO promotions right now
One of the most successful promotions is the BOGO deal. Here is one of thge best BOGO deal of the market. Proper execution can result in higher sales, larger orders, and improved conversion rates. It seems sense that businesses would want to capitalize on the Buy One, Get One craze given that a well-done BOGO promotion benefits both your company and your customers.