15 Popular Types of Sales Promotion Plus Examples

15 Types of Sales Promotion

There are several effective strategies that businesses can employ to entice customers and drive sales. Each type of promotion offers unique benefits and can be tailored to suit different marketing goals and target audiences. Below, we will explore some of the most common types of sales promotions:

1. Gift with Purchase

GWP is a promotional strategy where customers receive a complimentary gift upon purchasing. This simple yet powerful concept taps into the human love for surprises, turning routine transactions into delightful experiences.

Whether a new product sample, exclusive merchandise, or limited-edition items, GWP creates a sense of added value that resonates with consumers.

Examples of Successful GWP Campaigns

Fashion giant Calvin Klein is just one of the many brands that have had success with this promotional tactic. This promotion was spotted in Vietnam.

Customers can get the custom backpack for free upon buying the brand’s 2 of the 1000 ML fragrances.

Implementing a free gift with purchase promotion can have several benefits for your business. Firstly, it can help increase sales by providing customers with an added incentive to buy.

It can also create a positive and memorable experience for customers, as they feel they are getting more value from their purchase. Additionally, it can help introduce customers to new products or encourage them to try different variations within your product range.

To implement GWP promotion effectively, consider the following tips:

• Select a gift that aligns with your brand and complements the purchased product.

• Set clear criteria for customers to qualify for the free gift.

• Promote the free gift prominently in your marketing materials, such as on your website, social media platforms, and in-store displays.

• Ensure that the free gift is of good quality and well-packaged.

• Monitor the results of your free gift with purchase promotion.

2. Purchase with Purchase

PWP is a common promotional tactic used by many retailers to encourage customers to make larger purchases by offering an additional product at a discounted price.

It invites customers to unlock exclusive deals on additional products when making a primary purchase. This strategy entices customers with the opportunity to augment their initial selection, encouraging them to explore a broader range of offerings.

Examples of Successful PWP Campaigns:

Havaianas and Flamingo Bloom teamed up to give customers a fantastic summer!

The brands are offering excellent purchase with purchase products that are sure to make their summer memorable.

In this promotion, they offered discounts for every purchase of every particular item.

To implement PWP promotion effectively, consider the following tips:

• Tailor your PWP offers to align with the preferences and needs of your target audience.

• Transparently communicate the terms of the promotion to avoid confusion.

• Carefully choose the complimentary product or service to enhance the primary purchase.

• Effectively market your PWP campaign through diverse channels such as social media, email newsletters, and in-store displays.

3. Sweepstakes

Sweepstakes are a popular type of sales promotion that offers customers the chance to win a prize through a random drawing. Participants enter the sweepstakes by completing a specific action, such as making a purchase, providing their contact information, or engaging with the brand on social media.

Example of Successful PWP Campaigns:

We found Monster’s sweepstakes sales promotion in a 7-Eleven store in Hong Kong.

Shoppers can join this promotion upon buying any two cans or four multipacks of Monster Energy drinks in a single transaction.

To implement a successful sweepstakes promotion, consider the following tips:

• Determine the desired action for participants to enter the sweepstakes.

• Clearly define the prize(s) and the rules of the sweepstakes, including eligibility criteria, entry deadlines, and how winners will be selected.

• Promote the sweepstakes through various channels, such as your website, social media platforms, email newsletters, and in-store signage.

• Use engaging visuals and compelling copy to grab attention and create excitement around the sweepstakes.

• Follow through with transparency and fairness in the selection of winners.

4. Redemption Programs

Redemption programs centre around the concept of rewarding customers for specific actions, such as making a purchase, accumulating loyalty points, or participating in promotional events.

These incentives can take various forms, including discounts, free products, or exclusive access, fostering a sense of appreciation and value among consumers.

Example of redemption programs:

This redemption offer encourages customers to buy 3 Fuze Tea of any flavour to earn a stamp on the store’s point collection application.

Once they collect 7 of these stamps, they can redeem the branded gift.

Best practices for redemption implementation:

• Clearly communicate the rewards and benefits customers can redeem.

• Simplify the redemption process to make it user-friendly.

• Implement tracking mechanisms to monitor the success of your redemption campaign.

• Tailor redemption offers based on customer preferences and purchase history.

5. Loyalty Programs

Loyalty programs are a type of sales promotion that aims to reward and retain customers by offering them incentives for their ongoing patronage. These programs are designed to encourage repeat purchases, increase customer loyalty, and foster long-term relationships with your brand.

Examples of loyalty programs include earning points for every dollar spent, receiving exclusive discounts or offers, and being granted VIP status with special benefits.

Example of a successful loyalty program:

Eximbank once again piques the interest of its clients with its exclusive bank loyalty programs.

New and existing customers can take home special merchandise once they meet the promotional campaigns’ requirements.

Their special offers include Eximbank Birthday Promo, Online Savings Offer, Customer Gratitude Promo, and Send New Capital Offer.

Tips on how to craft a loyalty program:

• Determine the structure of the program, including how customers earn points or rewards, the value of those rewards, and any membership tiers or levels.
• Choose a system or software to manage your loyalty program and track customer activity.

• Collect necessary customer information while ensuring data privacy and security.

• Regularly communicate with program members to update them on their point balance, upcoming promotions, and exclusive offers.

• Continually evaluate and improve your loyalty program based on customer feedback and preferences.

6. On-Pack Promotion

On-pack promotions involve including an extra incentive, discount, or a free item directly on the product’s packaging. This strategy is designed to capture immediate attention, stimulate purchases, and create a positive association between the consumer and the brand.

Example of on-pack promotion:

Milo incentivised its customers with its limited on-pack promotion

For every 4 packs of 125 ml Milo choco malt drink, customers can get this custom-printed lunch box for free!

Useful and obviously durable, this promotional lunch box is worthy of the customer’s money.

Guidelines for on-pack promotion:

• Ensure that the on-pack promotion is relevant to the product it accompanies.

• Communicate the on-pack promotion clearly and concisely.

• Invest in eye-catching and aesthetically pleasing packaging.

• Explore partnerships or cross-promotions with other brands to enhance the value proposition of the on-pack promotion.

7. In-Pack Promotions

In-pack promotions are a strategic marketing approach that embeds additional value directly within the product packaging, creating a delightful surprise for customers.

Example of a successful in-pack promotions:

This in-pack gift promotion by Hendrick’s is definitely worth checking out.

The brand is offering a branded teacup as an on-pack gift with purchase.

This was a fantastic customer incentive as they went well with the main selling product.

8. Freebie Strategy

A freebie strategy is a sales promotion tactic that involves offering customers a free product or service to generate interest, trial, and ultimately, drive future sales. The goal of a freebie strategy is to introduce potential customers to your brand, product, or service and encourage them to make a future purchase.

Example of freebie marketing:

Nutrigold launched its new campaign promoting the “free Nutrigold container” to attract customers.

Pejoy Waffle, on the other hand, offered a free tote bag to its customers for every purchase of two 33g boxes of Pejoy Waffle.

In addition, Bobby Diaper introduced a free storage box as their chosen freebie.

To implement a successful freebie strategy, consider the following tips:

• Determine the product or service you will offer as a freebie.

• Set clear objectives for your freebie strategy. Are you aiming to increase brand awareness, generate leads, or drive immediate sales?

• Decide on the delivery method for your freebie. Will you distribute physical samples at events or send out digital coupons or codes?

• Plan how you will follow up with customers who try your freebie.

9. Limited-Edition Offers

Limited-edition offers are a sales promotion strategy that involves creating and marketing a unique and exclusive product or service for a limited period or quantity.

These offers are designed to create a sense of scarcity, uniqueness, and desirability among customers, driving them to make a purchase before the opportunity is gone.

Example of  limited-edition offer: 

The Changeling promotion wouldn’t be special without the limited product offered.

There are only 6,667 bottles of the 22-year-old and just 667 bottles of the 33 available worldwide.

Once the stocks last, shoppers don’t have the chance to taste these whiskies again.

Certainly, the scarcity of these products helps the brand sell them immediately.

Keys to effectively launching Limited Edition Promotions:

• Design a unique and desirable product or service that stands out from your regular offerings.

• Set clear parameters for the limited-edition offer, such as the duration or quantity available.

• Create a marketing campaign that highlights the exclusivity and limited nature of the offer.

• Consider offering special incentives or bonuses to enhance the perceived value of the limited-edition offer.

10. Discount Sales Promotion

Discount sales promotions are a widely used marketing strategy that involves offering customers a reduced price or discount on products or services for a limited time.

These promotions are aimed at attracting customers, driving sales, and increasing overall revenue. By providing a price incentive, businesses can entice customers to make a purchase and create a sense of value and urgency.

Example of discount promo:

This retail dump bin from Louis Auvergne contains discounted items.

Goods with yellow stickers gave customers a price discount.

These stickers act as visual cues for customers, signalling that the associated items are available at a lower cost than their original or regular retail price.

Tips for implementing discounts effectively:

• Time your discounts strategically to coincide with relevant events, holidays, or seasonal trends.

• Tailor discounts to specific customer segments or loyalty tiers.

• Instead of straightforward price reductions, consider bundling products or services to create value without compromising on perceived quality.

• Integrate discounts into your loyalty programs, rewarding repeat customers with exclusive pricing.

• Encourage higher spending by implementing discounts based on minimum purchase thresholds.

11. Holiday Promotions

Holiday promotions are a popular sales strategy that businesses use to capitalize on the increased consumer spending during holiday seasons and special occasions. These promotions aim to attract customers, boost sales, enhance brand visibility, and create a festive and engaging shopping experience.

Example of a creative holiday promotion: 

Kitkat surprises its customers with sweet treats for the coming TET holiday.

The brand runs an in-store competition where customers can win exclusive and premium items.

Shoppers may join the contest upon purchasing Kitkat Greentea 136g-TET and Kitkat 204g-TET.

To implement effective holiday promotions, consider the following tips:

•  Identify the upcoming holidays or special occasions that are relevant to your target audience.

• Provide special discounts, limited-time offers, or holiday-specific promotions that entice customers to make a purchase during the festive season.

• Develop visually appealing and emotionally engaging content that aligns with the holiday season.

• Promote your holiday promotions through various channels to reach a wider audience.

• Tailor your promotions and messaging to align with the specific holiday or occasion.

12. Buy One, Get One (BOGO) Promotions

Buy One, Get One (BOGO) promotions are a widely used sales strategy that involves offering customers the opportunity to receive an additional item for free or at a discounted price when they purchase a specified quantity of the same or related product.

These promotions are effective in increasing sales, driving customer loyalty, and clearing inventory.

Example of BOGO promotion:

For every purchase of 1 box of Koko Kruch, customers can get this custom water bottle for free.

The bottle is made of Polypropylene (PP) and Polyethylene Terephthalate (PET) materials.

It is also printed with the brand’s iconic image and logo.

Here are some tips to help you implement BOGO promotions effectively:

• Determine the specific rules and conditions of your BOGO promotion.

• Choose products that align well together or have a natural association.

• Clearly communicate the value proposition of your BOGO promotion to customers.

• Ensure that your employees are knowledgeable about the promotion and can effectively communicate its details to customers.

13. Subscription Promotions

Subscription promotions are a marketing strategy that encourages customers to sign up for recurring subscriptions or memberships in exchange for exclusive benefits or discounts.

By offering subscription promotions, businesses can generate recurring revenue, increase customer loyalty, and provide a more personalized shopping experience.

Example of subscription promotions:

The Week’s magazine promotion idea allows customers to enjoy six free issues and a water bottle as a welcome gift!

What makes this magazine subscription deal stand out is the valuable branded gift that comes with it.

Strategies for crafting irresistible subscription promotions:

• Determine what type of subscription or membership you will offer to customers.

• Emphasize the value customers will receive, such as regular shipments, access to exclusive products, free shipping, or priority customer support.

• Consider offering a free trial period or a discounted introductory rate to encourage customers to try out your subscription.

• Streamline the subscription sign-up process to make it simple and convenient for customers.

• Once customers have subscribed, focus on nurturing the relationship with personalized communication, exclusive content, and relevant offers.

14. Referral Programs

Referral programs are a powerful marketing strategy that encourages existing customers to refer new customers to your business in exchange for rewards or incentives.

By leveraging the trust and influence of your current customers, referral programs can help generate new leads, increase customer acquisition, and foster loyalty.

Example of an effective referral program:

California Fitness is giving away a water bottle for every friend referred to the gym for a free workout!

This referral program encourages gym members to refer their friends to California Fitness to get the bottle for free.

Leveraging the influence of referral marketing:

• Determine the structure of your referral program, including the rewards or incentives you will offer to both the referrer and the referred customer.

• Simplify the referral process to make it easy for customers to participate.

• Implement a tiered reward system to encourage customers to refer multiple individuals.

• Tailor the referral program to reflect your brand and create a personalized experience for customers.

15. Cause-Related Promotions

Cause-related promotions involve partnering with a nonprofit organization or supporting a social or environmental cause to promote your products or services.

These promotions not only benefit your business but also create a positive impact on society, contributing to a greater sense of purpose and social responsibility.

Example of inspiring cause-related promotion:

Material Futures doesn’t just innovate; it engages communities and inspires change.

Workshops, social media campaigns, and collaborations with institutions like CSIRO and RMIT demonstrate their commitment to community involvement.

Marketing is a dynamic field that requires continuous learning and adaptation. Staying informed about emerging trends, exploring innovative approaches, and being open to experimenting with new strategies to stay ahead of the competition is crucial in the process.

Ultimately, a well-executed marketing strategy can attract and retain customers, increase brand awareness and loyalty, drive sales, and contribute to the overall growth and success of your business. So, invest time and resources into your marketing efforts, and watch your business thrive in today’s fast-paced marketplace.

What Can ODM Offer?

The ODM Group is a promotional product agency established in 2003. Being in the industry for two decades, we have helped local and international companies design and produce marketing merchandise they need.

We have a team of designers and merchandisers who can businesses find and create the items they need. Want to get a detailed quote? Feel free to send us an email. It’s our pleasure to assist you!

All you need to know about types of sales promotion!

What are the different types of sales promotions?

There are several types of sales promotions that businesses use to attract customers and boost sales. Some common types include: Buy-one-get-one (BOGO) deals, Limited-time offers, Discount Offers, Gift with Purchase, and Purchase for Purchase

How can I effectively implement sales promotions for my business?

To implement sales promotions effectively, consider the following guidelines: Understand your target audience, Set clear objectives, Craft compelling offers, Promote through multiple channels, Monitor and analyze results.

How can I measure the success of my sales promotions??

There are several ways to measure the success of sales promotions: Track sales revenue, Monitor customer engagement, Survey customer feedback and Calculate return on investment (ROI).