Regardless of the products or services offered, every business needs to promote as part of a strategy to attract customers and increase sales for long-term sustainability. Running a promotion itself might be easy, but effective promotion requires thorough research on target customers and their behavioral trends and preferences. Therefore, every business should consider a well-planned promotion strategy to avoid losses.
One of the most crucial steps before launching a promotion is setting clear objectives. Based on these goals, business owners can determine the right metrics to assess effectiveness. The key is ensuring that these objectives are specific, measurable, achievable, realistic, and have a clear timeline.
There’s no denying that some promotions may fail, even leading to losses. Let’s explore five common reasons why promotions fail in this article!
1. Not Aligned with Target Customers
A major reason for promotional failure is a lack of understanding of the target customer. Designing a promotion without adjusting it to the specific needs and interests of the intended audience only results in ineffective promotions. For instance, offering discounts to a customer segment that prioritizes quality over price won’t be very effective.
Solution: Get to know your target customers. Use transaction data to understand customer characteristics—do they tend to buy at specific times or have specific menu preferences? This way, you can craft relevant promotions that are more likely to capture their attention.
2. Lack of Personal Touch in Promotions
Today’s customers prefer personal and exclusive experiences. General or uniform promotions often fail to add value because customers don’t feel special or appreciated. Adding a personal touch can help customers connect with the brand and increase loyalty.
To create a personal impression, you could use platforms like WhatsApp to send special offers that align with their purchase history, such as birthday discounts or offers based on their favorite products. This approach makes your promotions feel more personal and effective in grabbing attention.
3. Difficulty in the Promo Redemption Process
Effective promotions are easy for customers to redeem. Many customers lose interest if redeeming vouchers, coins, or promo rewards requires too many steps or additional apps. This can decrease their interest or even prevent them from redeeming the promotion.
Solution: Simplify the redemption process for your promotions. For instance, customers could simply show a promo code on WhatsApp or reply to a message to confirm their participation. The simpler the process, the more likely customers are to use the promotion.
4. Suboptimal Timing of Promotions
Besides the content of the promotion, timing is also critical. A promotion sent at the wrong time, like announcing a dinner offer in the morning, often ends up being ineffective. Moreover, promotions sent too frequently can annoy customers and lead them to ignore them.
Leverage automated message-scheduling features to ensure promotions are sent at optimal times. For example, using WhatsApp, you can schedule a lunch discount promotion to go out right at lunchtime.
5. Lack of Evaluation and Analysis
Without evaluation, it’s hard for businesses to assess the success of a promotion. Many businesses run promotions without evaluating their outcomes, so they don’t know if the promotion positively impacted the business. As a result, they may repeat failed promotions without gaining any insights.
The solution is to conduct regular evaluations after each campaign. Analyze customer data, such as the number of customers using the promo and the most popular products. This provides in-depth insights to craft better promotional strategies in the future.
When running promotions, effectiveness is key to achieving optimal results. Each step, from understanding target customers to evaluating promotional outcomes, determines the success of a campaign. By avoiding the five common mistakes above, your business can run promotions that not only capture attention but also deliver real impact.
Don’t forget to always tailor promotions to trends and customer needs so that they feel valued and connected to your brand.