Your company won't go very far if you don't have a few essential business elements in place. Basics like great products and services, good employees and great leaders are all important, but no matter what your company is built of it will be useless if you don't take the time to make sure that people actually know about you. Sure, word of mouth is great, but generating any kind of buzz about your company can be difficult. Running a promotion effectively is one of the backbones of any marketing campaign and it's very important that you understand all you can about planning, developing, and implementing a good one for your company.
To begin with, you need to plan properly. This is the number one mistake that most companies out there make when they start planning a promotion. If you don't take the time to do so, your promotions will almost certainly end up falling flat. To start off, think about your ultimate goal with your promotion. Is it to meet a certain financial quota during the span of the promotion? Or is it just to get the word out and make sure that as many people as possible know about your business so that in the future they'll come to you for their needs? Knowing what you need from any promotion is important.
Once those items leave your property, every single one of them is like a mobile advertisement for your business. Each person who sees someone carrying a tote bag with your logo will know about your company. Every person who borrows that pen from your customer will be aware that you exist. And when you're running a promotion, letting the most people know about you is the single most important aspect of the entire process. It may seem like an expense to purchase and giveaway promotional items, but in truth it's actually more of an investment that will give big returns.
ROI, or Return On Investment, is a metric that measures the overall expense of running a promotion against the potential financial returns it can bring. It is a 'value' measurement. The figures and calculations can be simple or complex, but what it basically comes down to is figuring out whether or not a specific method of promotion is worth the time, effort, and expense in terms of how many potential clients, customers, and sales it will eventually lead to.
One thing to remember about ROI is that there are short term and long term ratios to think about when you do your calculations. For instance, a specific promotion may attract a certain amount of sales during a certain period of time. But following that promotion, the buzz generated about your company can also bring in extra business for an extended period of time. Obviously it's very difficult to estimate just how effective a promo will be and what the long term ROI will be, but using data gathered from previous promotions is an excellent way to get most of the information that you need to gauge your potential success.
Once you're done thinking about results and planning the promotion, you'll have to actually run it. Be sure that you also promote the promotion or it will be doomed to failure. Running a great sale or giveaway is worthless if you don't advertise it so that people will actually know it's happening. Try to keep track of as much data as you can during the promotion. Figures like the number of sales, the amount of those sales, the free items you giveaway, and anything else you can think of will be important to track and record.
The steam you generate for your company's forward progress will only last for so long, and after a while you'll have to start planning a new event. As mentioned above, estimating costs and ROI can be difficult but by using previously gathered data it's much easier to do. As a result, every bit of information that you can gather during your current promotion can then be used to plan and estimate the results of your future promotions. The more promos you run, the more data you'll have and the more efficient and effective your promotions will become.
Running a promotion is one of the most important things you can do for your company. It's also one of the most complicated, at least in the initial stages of your first few promos. Once you get the hang of the process and know what works for your company and what doesn't you'll be able to plan out the best possible promos every time. It takes an investment of time, effort, and money, but those investments will pay back tremendously in increased profits, more customers, and a better brand identity in the marketplace.