There are several ways to enhance your sales. Discounts are a successful short-term tactic used by merchants when inventory moves slower than anticipated. Contrary to common perception, not all discount tactics are equivalent.
While classic discount deals are still successful, Buy One, Get One (BOGO) has recently become one of the increasingly popular options for merchants.
The notion of “buy one, get one free” has been one of the most popular marketing concepts in recent years. It’s ideal for merchants that want to pique their consumers’ interest and increase sales when things are slow.
But what exactly is it, and how can it improve your business?
We continue to lay out how and why BOGO works to help you increase sales and profitability.
Improve Customer Engagement
BOGO is popular with both merchants and customers. According to a recent survey, 66% of buyers choose BOGO above all other discount promos. It is also discovered that 93% of buyers have taken advantage of BOGO discounts at least once.
Customers are more willing to engage in BOGO promotions since the items seem to have no additional cost, hence higher value of money as a result of the offer.
With a Buy One Get One deal, you may catch the interests of customers easily.
Maximize Use of Social Media
Retailers cannot afford to ignore the rise of social media. In fact, 52% of individuals on the internet regularly use two or more social networking platforms. How you utilize social media should differ depending on user behaviors of your target market.
For example, if you want to reach baby boomers, promote your BOGO offers on Facebook rather than Instagram.
Furthermore, you may utilize social media not just to market your BOGO offers, but also to solve complaints and gather feedback. Customers who are pleased with their purchases and share their positive experiences on social media are a good source for word of mouth.
Actively using social media to reply to customers and publicize sales may be advantageous, since the majority of consumers who have positive social media service experiences with businesses are inclined to recommend it to others.
Improve Your Reputation
A company can improve its image if it gives discounts to certain categories of individuals, such as the senior or veteran. When a company offers discounts to people in financial difficulties due to a lack of income, it demonstrates that it is making an attempt to help people in need.
Many people perceive companies to be money-hungry, thus a change to that view might help the company’s reputation.
Meet your Sales Target
Many firms set sales objectives on a weekly, monthly, quarterly, or annual basis.
If a company is at risk of falling short of its sales targets, giving discounts may help it reach or even exceed the targets. For example, when customers can get 2 piece sets wholesale for a discounted price, it makes them excited to buy more of your clothes!
Stimulate urgency to buy
Creating urgency is important for an effective Buy One Get One offer, just as it is for any other sale. By establishing a deadline for your BOGO promotions, you may drive customers to act faster out of fear of missing out.
Retailers may utilize countdown clocks to highlight the remaining time of sale for online platforms. A countdown time with good placement may instill urgency in the customer to acquire the goods as soon as possible.
So When Should You Use BOGO?
Keep this in mind that BOGO is intended to clear out inventory. It is also a method of increasing cash flow when volume is low. People have to purchase more to qualify for the promotion, so you receive more revenue from a transaction.
One thing to notice is that when you set BOGO deals as a percentage off the second item, it is still effective.
Since BOGO is now a regular offer for consumers, the psychology of the bargain is generally the same. It means BOGO free and BOGO 50% off both make a buyer feel like they are receiving a fantastic deal.
Why Is BOGO Effective?
The most crucial aspect of a good promotion is giving a compelling offer. That is exactly what Buy One Get One achieves.
Like many other offerings, perception is more significant than actual discount.
In fact, a BOGO 50% off deal is the same as giving a 25% off discount, but it seems a lot more appealing.
The customer’s perspective is that they are receiving a good price, and that is all that counts. BOGO is one of the most effective “perception” deals available. The beauty of this deal, though, is its advantage to the revenue.
If you put a 50% discount sale on everything in your store, you’d see a lot of orders of just one item, which means your day’s margins would take a hit.
However, if you set a BOGO deal, your margins might still suffer, but not as substantially.
If margins of the products you sell are around 50%, you will break even every time a consumer gets a BOGO deal. However, you can still profit from other items with higher margins.
As a result, BOGO will have less impact on your margins and leave more room for you to make a profit.