subject: Secrets For Running A Successful Sale On Your Website [print this page] For the past several years our company has tracked and analyzed client discount campaigns during the ChristmasNew Year holiday season. The promotions which we monitored began early in December, ending at the beginning of January. Each year the discount campaigns were more and more successful, and we would like to share our observations for the 2007 - 2009 period. We think that you may benefit from this data when running your own seasonal sale. Of course, the best time for a company sale varies with its industry; e.g., a clothing client will run her sale in January, another client may do best in June or July. The principles of success remain the same.
To begin, here are some important statistics from our records. The first year, orders increased over the previous month by almost 18%; in the second year, the increase was 54%; in the third year, 40%. Note that in the third year, the base was larger; as a result, on an absolute basis sales were significantly higher. The increases relative to average sales volume grew even more dramatically.
These results indicate that the efficiency of these year-end campaigns improved year after year. What actions were taken in December to increase sales? What - which is probably of greater interest to you was changed each year to make the discount campaigns more attractive and more profitable?
In the first year discounts were restricted to most popular products. In the second year, new customers were offered discounts on all products, and existing customers received additional descending discounts; e.g., 25% in the first week, +20% in the second, in order to encourage early purchases. In the third year, we kept it simple: 25% on all products, with an additional 25% to existing customers.
The fundamental differences between the campaigns of 2008 & 2009, and those held in 2007, which account for increased success are as follows:
a) We offered special discounts to existing customers; i.e., those who previously purchased products,and we sent targeted newsletter mailings to offer them the appropriate special discount.
b) Campaigns in the 2008 and 2009 years began 10 days earlier; the longer sales period definitely added to volume, and higher sales were recorded right up until the last day of the sale.
Despite the significantly reduced size of discounts offered in 2009 versus 2008, this did not have a negative effect on sales growth. In both years it was around 50% of the average monthly sales volume during the year. The lower discount for existing customers in 2009 (10%), compared to that offered in 2008 (70% 30%), was more than compensatedfor by the greater number of new customers who took advantage of the generous discount for the entire product range in 2009. Remember that in 2007 all customer groups could purchase only the most popular products with a discount.
7 tips to make your holiday discount campaign successful:
1. Offer a discount on all products to new customers.
2. Offer an additional discount to your existing customers; i.e. those who have ever ordered any of your products or services.
3. Place an announcement about the Sale or Special Event (e.g.,Christmas, New Year, Valentine's Day, Spring, etc.) on your website's homepage.
4. Show discounted prices both in the common catalog and on pages with individual items' detailed descriptions.
5. Make the discounted price strike a visitor's eye by showing it next to the list price.
6. Publish an announcement in your blog. Ensure in advance that your blog readers can subscribe for an RSS feed or email newsletters; this will allow you to inform them immediately about the campaign.
7. Send newsletter to all of your existing customers and newsletter subscribers.
