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Cyclical Promotions and the Compounding Effect

Sales promotions take many different forms, but they all focus on persuading a target audience to engage and transact. Once-off promotions can work well to encourage the trial of a product or service, but they fail to tap into the compounding effect of cyclical programs.

Successful companies know that cyclical sales promotions are among the most effective methods of increasing sales, boosting customer satisfaction, heightening brand awareness and maintaining customer loyalty over time.

Here are 5 key benefits of running cyclical campaigns:

  1. In relation to WINNING NEW CUSTOMERS or WINNING BACK LAPSED CUSTOMERS, it takes time to BUILD TRUST. The more positive interactions a retailer or consumer has with a brand via outstanding sales promotion, the more likely they are to buy.
  2. On - going promotional activity works to retain EXISTING CUSTOMERS. Offering discounts or value - added incentives is more cost effective than attempting to win the hearts and minds of a prospect from scratch. BUILD CUSTOMER STICKINESS where you can to harness the compounding effect or repeat purchasing.
  3. WHEN YOU’RE OUT OF SIGHT - YOU’RE OUT OF MIND! Cyclical campaigns can form the basis for all communications and generate on going interest in your offerings. Push your campaigns out in your emails, socials, banner ads, in store and everywhere you can to stand out from competitors. 
  4. Promotional offers whether they be daily, weekly, monthly or aligned with the seasons PROVIDE CONSUMERS WITH A REASON to visit your store or website. 
  5. CASH FLOW IS KING in any business. If you’re investing in a lot of stock or IP you need to sell through to your market consistently so your overheads don’t swallow you up. Effective promotions are designed to expedite sales.

And whether you’re business is flying or momentarily flat, don’t be tempted to cut your sales promotion budget.  Consistent cyclical promotion in good times enhances the compounding effect on sales conversion rates.

In leaner times consistent promotion can help you win market share from competitors that cut back on promotional activity.

SAM Sales & Marketing invite you to contact us to discuss how a cyclical promotional program can be established affordably. 

View our video on Cyclical Promotions, a summary of the point above, here.

Contact Peter McKinnon: (03) 9646 5644 /

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