ARTICLE: Risk Managed Promotions – the key to success
Lee Anderson, Operations Manager, Consenna
Sales promotion is, by definition, a focused effort to drive and increase sales. It can be targeted at a particular customer, or product, or be linked to an external driver such as a growing trend or a shift in behaviour.
Whatever its specifics, it will be carefully constructed with two key considerations of paramount importance: one, “will the promotion have the necessary impact to deliver the response intended?” and, conversely, “what if the promotion proves too successful and risks profitability?”. Creating competitive advantage is always a given.
With these considerations in mind, the notion of ‘risk managed promotions’ is vitally important and HP’s Secure Trade-In programme serves as a useful example of how to successfully deliver such a promotion.
With issues around data security all too often meaning that redundant kit gathers dust in a cupboard, a trade-in scheme that not only ticks the box in terms of cost and sustainability but does so with an appreciation of the security implications involved was required.
The challenge, however, both for HP and its channel partners is to maintain a focus on these all-important factors, whilst pitching the promotion so that it hits the sweet spot of not too many and not too few take ups.
This is where outsourcing such a promotion to a team like Consenna is key to success.
Experts in enabling our customers across the global IT community to achieve increased revenue, margin or market share objectives, we employ a comprehensive suite of tools and approaches to ensure sales promotion success.
Partnering with HP’s reseller partners, it is vital to develop promotions that are first and foremost plausible. In the case of the Secure Trade-In scheme, emphasising its credibility and encouraging trust in it are steps that we went through with the channel partners before even considering the end-user’s buy-in. In this case, a focus on the key points around data security and its sustainability credentials are invaluable.
We must also equip and empower those reseller partners with all the necessary detail and support to manage and sell the promotion successfully. Our bespoke promotion portals receive high praise from the channel for both their user interface and user experience; our customer service is recognised for its responsiveness and speed to resolve queries; and we ensure that resellers are armed with comprehensive battlecards that clearly outline the benefits of each distinct promotion to its intended audiences.
Success in such promotions is defined as increased sales, but a balance needs to be struck to ensure that trade-in redemption levels aren’t allowed to snowball and become unprofitable.
Here, several key elements can be integrated into the make-up of the promotion. From over-redemption insurance, to capped promotions that rely on clear monitoring of customer registrations and on to clear Ts & Cs that detail eligibility and timeframes, engaging an expert team to manage a sales promotion will deliver not only success, but safeguard profits and reputation.
Sales promotions can be defining moments in the revenue growth journey of any business, but only when they’re effectively managed with all risks assessed and accounted for and measures put in place to ensure that the parameters of the promotion are clearly defined.