Sales Promotion Definition & Examples

12 types of sales promotions

Regardless of the type of business or industry you’re in, there are a variety of sales promotion examples and techniques at your disposal that you can align with your sales needs. Some great sales promotion ideas include:

1. Competitions and giveaways

Customer competitions can be about getting the most engagement on a social media post your brand is tagged in, or a social media challenge that enters them in a giveaway. This is a fun way to both create buzz around your business and reward customers for being avid supporters and promoters of your brand.

2. Flash sale or limited-time price reduction

A flash sale is a sales promotion that offers a discount, promotion or rebate that’s only valid for a short period of time, ranging from just a few hours to a few days. Flash sales work well to create a sense of urgency, which can help nudge consumers to make a purchase decision.

Even though the buying window is short, marketers can build interest ahead of time by sharing exactly when the flash sale will occur.

3. Bundling of products or services

If you have a product set that has the potential to create more value as bundled offerings rather than standalone items, selling them as a package for a discounted rate can help to increase overall sales.

This can be highly incentivizing for customers that were struggling to choose between several of your products or services and a competitor’s and can now get both (or many) at a discounted price.

4. Free trial or demo

Free trials are a great way to get a lead to try out your product or service with no risk to or commitment from them. In practice, retailers can offer free samples at the point of purchase, and B2B or B2C services might offer a free trial or demo of their products or services so that their leads and potential customers can take the product for a spin.

To support conversion, consider pairing the free trial or demo with a limited-time discount.

5. Limited-time free shipping or transfer between platforms or services

In e-commerce, Baymard Institute estimates that nearly 70% of consumers abandon their shopping cart and 50% of those consumers attribute their cart abandonment to unexpected extra costs like fees, shipping and tax.

Sales promotions that use free shipping and free returns can help eliminate one of the obstacles that cause people to abandon their cart. If you are a B2B or SaaS brand, the final hurdle for purchase might be your customer’s resistance to deal with the challenge of switching providers.

6. Limited-time freebies

If you can’t be flexible on price, you can still generate a sense of urgency by creating a limited-time offer for a free product added to an order.

For example, you could offer an existing product or service alongside a free bonus feature or add-on. This adds perceived value without hurting your bottom line or constraining your resources.

7. First purchase coupon

If someone becames connected to your business in a way other than making a purchase, such as a free trial, it might take time for them to warm up to becoming a paying customer.

To speed up the process, offer a discount on their first purchase. In fact, some brands even offer discounts on first purchases in their welcome email as a way to thank their new customer or lead for joining their community. For best results, limit the offer to a couple of days. Even if they don’t use the coupon, they may browse your products or services and learn more about your business.

8. Buy one, get one free

“Buy one, get one free” (also called BOGOF), or “Buy two and get the third free” are commonly-used sales promotion tactics. These campaigns are useful when you want or need to sell several products at once.

This type of promotion can also work to build brand awareness, as your customer may share the extra items with a friend or family member.

9. Coupon or voucher code

Coupons are versatile because they can be delivered in a variety of ways, such as via your website, social media, or print materials like on your receipts or product packaging. Coupons are a great way to thank current customers or incentivize first-time customers to return.

10. Tripwire (upsell)

Tripwire refers to the idea of offering an entry-level product or service to a potential customer. By doing this, your salespeople can get them into your ecosystem or sales CRM and begin nurturing them through the buyer’s journey.

Once you build trust, you can show them why upgrading to a higher-priced offer is in their best interest.

11. Recurring sale

If it suits your business, you might consider becoming known for your one-time or biannual sale. A recurring sale can help build anticipation so that when it does finally come around, people are ready and excited to spend.

12. Portion of purchase goes to a charitable cause

Running a sales promotion that dedicates a portion of your purchase to an important cause or charity can be a great way to spark business. Your customers will feel good about their purchase, and you’ll be able to enhance your brand image by associating it with an important cause. This is also an easy way to build customer loyalty with leads who support that cause themselves.

According to the 2018 Cox Business Consumer Pulse report, 71% of people said they would spend more at a small business if they knew it supported a social or environmental cause.