Gone are the days of only running promotions during traditional holiday seasons. Now more than ever, discounts and special offers give consumers the final push they need to make a well-considered purchase. Although a promotion can be effective, implementation does not come without drawbacks. So do campaigns make sense for any business, and if so, how many campaigns are too many? One word: Test.
Why should you run campaigns?
It may not make sense for every business to test in campaigns, but if it makes sense for you, there are various benefits to doing so.
- Tracking options
- One of the most effective reasons for testing promotions is the ability to easily measure your success by monitoring how many times a promo code is redeemed. It is recommended to test different codes for different platforms so that you can determine which platform generates the most sales. However, it is important to note that people often forget to apply the code at checkout. Therefore, the benefits regarding tracking capabilities only apply if the code is remembered.
- One leg up at the auction
- All new ads enter into some form of an ad auction where you will compete against others based on certain factors, with the winner being the one the system determines is most relevant to the intended audience. Ad quality and landing page experiences are considered in addition to signals of user value, such as how people have previously interacted with content. By running campaigns, people are more likely to engage with your ad, giving you a leg up in the auction.
- Improved customer impressions
- When done correctly, offering coupons and discounts can leave a more positive impression on both new and existing customers. Offering discounts too often can lead to brand erosion. Just the right amount can be valued and can often be the final deciding factor in a purchase.
- Attract new customers
- Discounts have the potential to attract new, potentially brand-loyal customers that you would otherwise have missed. Reaching new customers is all about creating awareness and interest, and campaigns are a proven way to do just that.
How much of a discount should you offer?
A key factor in a successful promotion is competitiveness. Savvy, budget-friendly shoppers are often quick to browse other sites for better deals and compare prices in real time to get the best value. Having promotions prepared in advance can help maximize opportunities during peak periods, and choosing the right discount can be the difference between a new or existing customer buying from you instead of your competitors. There are different types of discounts you can offer, from flash sales and shipping deals to bundle deals. Be aware of what the competition is offering and keep testing to find what resonates with your customers.
How long should you offer promotions?
Campaign run dates vary depending on the type of campaign being advertised. Flash sales, for example, will only run for a short period of time, but build excitement and urgency quickly. Unconditional discounts can be ongoing, acting as an evergreen offer to your customers on different platforms, but you run the risk of your customers expecting lower prices all the time. On the other hand, long-term campaigns work well for some businesses, but this will always vary. My recommendation? Sample! Do you sense a theme?
Who should you target with your campaigns?
Both loyal and new customers may be offered promotions for various reasons. New customers see your brand as a risk, as most are reluctant to buy from a new company they haven’t bought from before. Promotions can combat this very common problem by reducing the barrier to entry for your target audience to purchase. If a new customer is saving, they don’t feel the potential loss is as serious if a purchase doesn’t meet their expectations.
A campaign may not always lead to a sale for existing customers, but it reminds them that you exist. It is not uncommon for customers to buy once and never return, especially as brand loyalty becomes harder and harder to achieve and maintain. In addition, like new customers, they want to be shown the most relevant ads possible. A promotion can be the very reason a customer returns as opposed to going to a competitor.
Tips for effective campaigns
It’s no secret that consumers have a limited amount of time to scroll in a day, so first impressions matter. There are different ways to optimize advertising ads. Below are a few creative elements I recommend testing.
- Text overlay
- Some users prefer no text overlay, while for others it is the only element that has the potential to capture their very limited attention. Test some content with text overlay and some outside to better gauge what resonates with your audience.
- Sound
- Design for sound off, but enjoy with sound on. Successful videos designed for audio interruption are visually pleasing with a clear focal point and a super clear message. A large majority of Stories ads are viewed with sound on, so don’t miss the opportunity to test and go beyond the visual experience of your ad.
- Landing pages
- Shoppers appreciate consistency, a page where they can browse directly from an ad without having to worry if the purchase they’re considering is included in the promotion. A customized landing page for a specific campaign saves customers time and effort, which is often considered heavily in the final purchase decision.
The downside of running campaigns
As valuable as campaigns can be, they don’t always make sense to run, especially not often. There may be disadvantages, e.g. to appeal to customers who are not your ideal target group or to reduce the overall return if the campaign is not successful. Weigh the pros and cons and test for real results.
Before implementing a promotional strategy, consider the following:
- What are your business goals? Outline your goals and work to offer a discount that will help you achieve them.
- What are your competitors running? As previously mentioned, being competitive with promotions has the potential to acquire customers who were previously loyal to another brand.
- What are the disadvantages of offering promotions that apply to your business? Make a list of pros and cons to ensure that implementing campaigns into your strategy makes sense for your business.
Ultimately, promotions can be a basic revenue generator for some and off-brand for others. There is no real sweet spot when it comes to how many campaigns to run – it’s all about testing.
