How to use sales to grow your business: strategies and mistakes

Sales are a powerful tool for increasing sales, attracting new customers and building audience loyalty. However, not every promotion ends in success. According to McKinsey research, only 30% of sales lead to a real increase in profits, while the rest either have no significant effect or even cause losses. For a sale to really work, it's important to consider many factors, from the timing of the sale to creating a sense of urgency. Let's find out how to launch promotions correctly so that they bring maximum benefit, and what mistakes can ruin everything.

When and how to run sales to make them really work

Not every discount results in increased sales. A well-planned promotion should take into account several factors:

• Choosing the right time. Studies show that certain times of the year perform better than others. For example, Black Friday increases online sales by an average of 24% and New Year's Eve discounts by 30%. However, it's also worth considering the specifics of your audience. Perhaps your customers are more interested in seasonal discounts in early autumn or summer.
• Clear goals. Before launching a promotion, determine why you need it: to increase revenue, to get rid of stock, to attract new customers or to increase the average cheque. Without a goal, a sale may be a meaningless waste of resources.
• Time constraints. Longer promotions lose the urgency effect and don't motivate customers to make a quick decision. HubSpot research shows that promotions lasting 3-7 days generate 40% more conversions than those lasting two weeks or longer.
• Personalised offers. Customers respond more to promotions if they match their interests. According to Salesforce research, personalised discounts increase the likelihood of a purchase by 26%.

How to create a sense of urgency and increase conversions

A sense of urgency is key to a successful sale. Here are some proven ways to create it:

• Limited time. "Only 48 hours!" or "Discounts until the end of the week!" - such phrases motivate you to make a quicker decision.
• Limited stock. "Only 5 discounted items left!" - triggers the fear of missing out on a lucrative offer. According to CXL research, such strategies increase conversion rates by 9-14%.
• Bonuses for quick purchases. For example, "To the first 50 customers, an additional 10% discount". RetailMeNot research shows that such offers increase sales by 18%.
• Countdown. A timer on the website showing the time until the end of the promotion works surprisingly effectively. Amazon is actively using this method, increasing the probability of buying on 19%.

Mistakes that can ruin your stocks

Even the most favourable discount may not work if you make the following mistakes:

• Too many sales. If promotions are going on all the time, customers will stop taking them seriously. They will simply wait for the next price reduction and will not buy goods without discounts. PwC research confirms that brands that organise sales more than once a month lose up to 15% of margin.
• Unclear conditions. Overly complicated promotion mechanics, fine print with important details - all of these cause distrust and irritation among customers. According to Nielsen research, 64% customers abandon a purchase if the terms of a promotion seem confusing.
• The discounts are too big. If you sell a product below cost, it will not only lead to losses, but can also reduce the value of the brand in the eyes of customers. An example is Forever 21, which lost profitability due to aggressive discounting and filed for bankruptcy in 2019.
• Lack of advertising. Have you launched a campaign but not communicated it to the audience? Then the results will be accordingly. According to Statista, companies that invest in social media promotions increase conversions by an average of 27%.

The right sale is not just a price cut, but a well-thought-out strategy. Choose a good time, create urgency, avoid mistakes - and then promotions will bring not only a short-term increase in sales, but also long-term customer loyalty. Proper use of discounts can become your secret weapon on the way to success!