You can greatly increase your retail returns if you follow these tried-and-tested tips.

Having impactful promotion ideas for retail stores is crucial for attracting customers and staying ahead of the competition. They don't just add value when sales slump but are an important part of customer retention.

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But with the competitive nature of commerce, business owners need to stand out to:

• Build customer engagement and brand loyalty
• Establish steady foot traffic and a consistent cash flow
• Grow sales and meet revenue targets

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Effective retail promotion ideas help stores achieve these goals and lead to both in-store and online conversions, but it’s sometimes hard to find the time or inspiration to come up with these sales brainwaves.

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This article aims to help business owners with this key retail business task. Read on to find out everything you need to know about building a retail marketing strategy and a few winning ideas to get you started.

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Table of contents

• What is a retail marketing strategy?
• How can I encourage repeat purchases in my retail store?
• 20 of the best in-store promotions to attract customers

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[Great ideas are nothing without a solid system. Carry out essential business tasks, like hassle-free payments, by using Kem for your in-store POS. Contact our team to integrate it into your business today.]

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What is a retail marketing strategy?

A retail marketing strategy aims to draw in customers and encourage them to spend. 

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This doesn’t necessarily have to occur in-store but must ultimately drive customers your way, whether in-person or online.

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The strategy often includes a few moving parts that work together, such as:

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• Advertising online and offline
• Store layout
• Special promotions
• Pricing strategies
• Loyalty programs 
• Retail displays
  
  

When done well, great marketing helps new customers get to know you better and leads to long-term sales built on loyal customer relationships. 

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How can I encourage repeat purchases in my retail store?

Many retail store owners face the issue of encouraging repeat purchases, but great promotion ideas for retail stores can help.

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Kevin Stirtz, author of More Loyal Customers has a simple yet effective answer, ¨The easiest and most powerful way to increase customer loyalty is really very simple. Make your customers happy.¨

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¨The easiest and most powerful way to increase customer loyalty is really very simple. Make your customers happy.¨ - Kevin Stirtz, author of More Loyal Customers: 21 Real World Lessons To Keep Your Customers Coming Back

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Various promotional ideas can help you engage with customers, but some customer-friendly basics shouldn't be overlooked:

• Customer service: Offer a memorable customer experience with quick and pleasant service and always ensure you solve issues swiftly.
• Incentivize spending: Give first-time customers 5% off their next in-store purchase to encourage them to come back.
• Gather feedback: Your customers know best. Collect feedback to gain insights on what you can improve in-store and offer them rewards for providing it.

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These tasks will not only make your customers happier, but they’ll also help you understand what they want. This information will influence which promotions you use and how you’ll carry them out.

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20 of the best in-store promotions to attract customers

A rotating calendar of promotions helps you stay relevant in a competitive landscape and helps build a community around your store.

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Here are 20 proven in-store promotions that you can add to your schedule which are beneficial to both small and large businesses.

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1. Seasonal or themed sales

Sales promotions are one of the most straightforward promotion ideas for retail stores to build brand awareness, entice new customers, and boost profits. 

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Coupling discounts with major holidays like Eid, National Day, Ramadan, or seasonal events is a surefire way to capitalize on the uptick in holiday foot traffic.

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Beyond this, you can market seasonal sales in many forms, including:

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• Flash sales that only last 48 hours to create urgency in the customer’s mind
• Clearance sales that focus on clearing inventory
• Student or senior discount sales that target a group of people
• Store anniversary special offers to commemorate your opening day.

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Seasonal promotions not only let you make the most of a busy spending period but also establish you as a destination for great deals in customers’ minds.

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2. Loyalty programs

Acquiring new customers is not only four to five times more expensive than keeping existing ones, but your current customer base is far more likely to purchase from you again! The more times they buy from you, the higher chance they'll return again and again.

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Customer likelihood of repeat purchases

Source: Semrush

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Loyalty programs can change a customer relationship from purely transactional to emotional. Some common examples include:

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• Points-based loyalty program: These incentives let customers earn with every purchase to redeem goods or services.
• Tiered loyalty program: Customers can unlock different tiers the more they spend, giving them exclusive benefits, discounts, and access to VIP sales.
• Cashback loyalty program: Shoppers can get a percentage of their spending back in store credit.

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Personalized rewards like this make your customers feel like you’re speaking to them directly and greatly increase their connection with your store.

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3. Giveaways

Incorporate in-store events into your retail marketing strategy by hosting monthly giveaways. Every purchase at your physical store enters customers into a raffle, with one winner selected monthly. 

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Giveaways like this attract foot traffic and can also be used to expand social media reach.

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4. Pop-up stores

Pop-ups often come up when discussing promotion ideas for retail stores. These are retail locations opened for a limited time only, often only for a few days or weeks. 

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Due to their temporary nature, pop-up stores allow you to reach new potential customers and create a sense of urgency, helping to both boost sales and build brand awareness.

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5. Bundle special offers

Bundling items or services at a special rate is a vehicle for cross-selling and encourages customers to try new products. 

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Businesses can create offers in tandem with seasonal promotions, such as summer selections or this month's best sellers, allowing them to combine the power of both tactics.

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6. Referral incentives

For easy-to-execute promotion ideas for retail stores, look no further than word-of-mouth marketing. Simply offer customers referral discounts, cashback, or free samples when their recommendation leads to a purchase. 

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This is an effective retail marketing tool that requires little effort.

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7. Price matching

Customers value a good deal! Brick-and-mortar stores can remain competitive and build brand loyalty by offering price matching on products or services.

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If another store has the product for cheaper, you can match their price and provide additional incentives to win their business. 

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This particularly benefits small businesses looking to build their customer base with competitive pricing and value for money.

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8. KOL partnership

Align yourself with an influencer, artist, or a key opinion leader to reach your target audience as they often have a huge social media following that can give your store great exposure. This might involve offering an exclusive discount to their followers or a product collaboration.

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Using their social media platforms as part of your promotion strategy can help you build a new, loyal customer base at a fraction of the cost of other types of marketing campaigns.

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9. BOGO deals

Buy One, Get One (BOGO) deals are among the most effective sales promotion ideas. They create urgency that feels too good to miss, allow for cross-selling, and can help you get rid of old stock.

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According to a study conducted by AMG Strategic Advisors, 66.1% of surveyed consumers preferred BOGO deals over all other types of promotions.

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Source: Voucherify

This type of marketing strategy can help tip the scales for potential customers sitting “on the fence” who are unsure whether to buy from you or not.

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10. In-store only offers

While we hear a lot about the future of e-commerce, the GCC demographic still favors a hybrid commerce approach that embraces online and offline shopping habits. 

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This makes in-store-only promotions an important retail marketing strategy that can drive foot traffic. Use window displays and signage to advertise your offer better. In-store offers can include:

• Loyalty point multipliers when shopping in-store
• Mystery discounts with sealed envelopes
• In-store only products
• Free samples in-store

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In-store promotions offer an exclusivity and customer experience that can´t be replicated virtually, but it’s best to use them in tandem with online business ideas like digital offers for maximum returns.

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11. Employee family & friends discount

Creative ways to increase retail sales don't have to be complicated; with this one, you won't need to fork out a large budget for marketing campaigns! 

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By simply extending a discount to your employees' families and friends, you have word-of-mouth marketing for free.

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12. Subscribe & save discounts

Recurring revenue boosts sales and gives businesses a greater sense of financial security. 

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By inviting customers to commit to a subscription model, they can save a percentage on every purchase, and businesses can gain better revenue projections.

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This type of promotion can be applied to many businesses, including coffee shops, cosmetic boutiques, and grocery stores.

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13. Limited edition releases

Scarcity is a powerful tool when brainstorming promotion ideas for retail stores.

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Limited-edition promos allow brands to create higher demand without offering a discount because customers are willing to pay more for exclusivity.

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14. Gift with purchase

Elevate your customer experience with in-store perks like a gift with a purchase. Potential customers are more inclined to purchase if they know they'll get something extra with no added cost.

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Freebies are a relatively economical way for local businesses to build brand loyalty, as even a small item can create a positive association with your store and encourage customers to return.

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15. Early bird discounts

If you run a cafe or restaurant and notice revenue slumps at certain times, early-bird discounts can attract your target audience during off-peak hours. 

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Everyone loves to feel like they're getting a good deal, so this is an excellent way to build loyal customers.

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This marketing strategy can also be applied to service-based companies and e-commerce sites offering product pre-orders.

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16. In-store events

Retail stores have the major benefit of being able to use their physical space and host events to draw in crowds. This is an opportunity to use collaborations to reach a wider audience and offer special event-day-only offers for attendees.

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Hosting your event in-store allows potential customers to know your brand more intimately and is one of the many creative ways to increase retail sales. In-store event ideas can include:

• Seminars and workshops
• Product tutorials
• Tasting or sample events
• Launch parties or seasonal celebrations
• Charity events
• Competitions or contests
• VIP nights

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Here’s a vital tip from Rachel Leist, Senior Manager of Growth Marketing at HubSpot: “If you have an annual event, the first thing you should do is announce the event to last year's attendees. The people who came the year before may be your biggest supporters. Offer them a special discount for signing up early."

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¨If you have an annual event, the first thing you should do is announce the event to last year's attendees." - Rachel Leist, Senior Manager of Growth Marketing at HubSpot

17. Interactive displays

For those looking for a tech-savvy promo to maximize the customer experience, immersive window displays or interactive in-store installations can catch new customers' eyes and generate social media chatter.

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This could be anything from an augmented reality mirror for trying on virtual clothes to an interactive wall that shows real-time social media images from customers.

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18. Charity initiatives

Shopping for a cause increases sales. By aligning with a charity or movement, brands build customer goodwill and enhance their reputation. 

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Charity initiatives can be as simple as donating a portion of profits to an organization or creating products in collaboration with the charity.

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19. Gift cards

Selling gift cards in-store or online is a cost-effective strategy to widen your customer base while generating sales. 

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Gift cards enhance your retail marketing strategy by encouraging repeat visits, boosting foot traffic, and increasing brand awareness. 

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In addition, it allows you to grow your email marketing list when customers opt to send digital copies, opening the door to more targeted marketing efforts.

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20. Customizable products

For more ambitious marketing ideas, customizable products are a great way to create exclusivity and keep people in-store longer, which means a higher chance of additional purchases.

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A study from the Journal of Consumer Psychology found that 89 percent of women and 78 percent of men who visit physical stores shared that they add additional items to their cart beyond their identified needs. Customizations are a way of offering them extra features and bringing in some extra revenue.

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Customizations that can be done in-store can include:

• Engravings
• Printing
• Decal application
• Monogramming
• Custom blending
• Hand-painting

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This could be part of your in-store event ideas, making it an exclusive experience only for a limited time.

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Whichever promotion piques your interest, it's important to note that having more than one promotion and incentive at once will increase your chances of reeling in more business.

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Strategic timing and diverse ways of engagement can create a sense of anticipation and keep your offerings fresh and exciting for both new and existing customers.

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[Make sure you're ready to capitalize on your retail promotions with seamless payments using Kem. Contact our team to integrate Kem’s instant payment system in-store today.]