Promotions in Durable Goods: Implementing Durable Goods Promotions
Cash Is King
When designing a promotion, it's important to keep in mind the preferences of your target audience and the dynamics of your individual category. If you're seeking an immediate bump in sales, cash rewards have been shown to be most effective in the short term, but it can be difficult to sustain long-term loyalty.
The Right And Wrong With Discount Promotions
Research has shown that consumers tend to prefer promotions that include a feature like "buy one get one free" or a "bundled" savings instead of a discount.* If you do plan to run a discount-type promotion, the original purchase price of the item may dictate whether a dollar discount or percentage discount would be more effective. For example, $100 off may appear more attractive than 5% off a $2,000 purchase. On the flip side, 20% off a $50 purchase may be more effective than advertising $10 off the purchase price.
Customer promotion value perception
Covering All Angles
Durable goods manufacturers may wish to offer multiple types of promotions at once in order to address the complex nature of the purchase process and varying needs of potential customers. For example, it may be advantageous to offer both a percentage discount and a no-interest financing promotion to influence both planned and unplanned purchases.
Let Consumers Know About It
Ultimately, the most important factor in a promotion's success is effectively communicating it through the channel and to consumers. This means not only supporting the promotion across paid, owned and earned media but also ensuring that sales personnel within your organization and at retail touchpoints understand the details of the offer.
*Source: University of Dayton. Cognizant, 2011