Expert Talk

[Insight Inside] The 10 types of Consumer Promotion you must know

If you are a business owner in the retail or e-tail space, chances are you would have run some form of promotion. Your goal, in all probability, would have been to attract more walk-ins, among others. And thanks to such efforts, you must have become better at it.

But so have your competitors. Because, running promotions, even effective ones, could never become a differentiator. Your ‘Big Sale’ promotions, ‘End-of-Season’ offers and other festive-led campaigns are all-or-nothing activities; they are applicable to all the retailers and e-tailers serving that market.

The result: you are fragmenting the shopper pie!



The category of promotions we have discussed so far is called ‘occasion-led’. But as a business owner, you should be able to tap into, even influence, your shopper psyche. We call it the ‘behaviour-led’. Can you devise a promotion program that incentivizes your customers when they indulge in ‘value-creation’ activities?

Can you condition the shopping behaviour of your customers?

In this ‘Insight Inside’ series, we will look at ten tried and tested ways through which you can create and target promotions using gift cards.

1. To move dead stocks

Promotion is, first and foremost, a product-motion, the activity of moving products (stocks) from shelves to shopping carts.
How do gift cards help as Consumer Promotions tool?
Business owners can make sure the cards remain redeemable only against a specific product. This will greatly help improve stock turnover.

2. To improve the visibility of a brand

The most common form of promotion. Used specifically to boost the product off-take of a brand.
How do gift cards help as Consumer Promotions tool?
Business owners can make sure the cards remain redeemable only against products of a specific brand.

3. To reach a large customer base

A highly focused form of promotion, this is used to make inroads into a large catchment area, such as a city, etc. and thereby establish the brand presence.
How do gift cards help as Consumer Promotions tool?
Business owners can set rules such that the cards remain redeemable only within a specific catchment.

4. To engage a captive audience

A locale-specific activity, this is employed to engage a captive audience, such as in a mall, etc. and thereby increase footfalls.
How do gift cards help as Consumer Promotions tool?
Business owners can run contests and instantly reward winners with ready-to-load e-Gift cards.

5. To leverage on the festival rush

Another frequently used form of promotion. Used to improve walk-ins during festive seasons and occasions.
How do gift cards help as Consumer Promotions tool?
Business owners can run themed promotions suited for an occasion or a festive season, such as Women’s Day, Diwali sale, etc.

6. To improve sales during off-peak sales

The ideal complement to festive-season promotions, this one is used to incentivize shoppers to visit the store during off-peak hours.
How do gift cards help as Consumer Promotions tool?
Business owners can improve occupancy and walk-ins through deals such as ‘Happy Hour’, BOGOF (Buy One Get One Free), etc.

7. To spread word of mouth

Used at the time of new store openings, this one is used to gratify ‘first-day’ shoppers, and thus spread brand equity through word of mouth.
How do gift cards help as Consumer Promotions tool?
Business owners can distribute free promo-cards for shoppers, and make sure the cards remain redeemable only at the new store.

8. To appeal to the millennials

Millennials are next-gen customers who prefer online shopping over buying from physical stores.
How do gift cards help as Consumer Promotions tool?
Business owners can break the internet clutter through social media contests and instantly reward the winners with e-Gift cards.

9. To widen the market funnel

Promote with non-competing brands through ‘combo offers’. This helps attract footfalls that were previously unavailable.
How do gift cards help as Consumer Promotions tool?
Business owners can collaborate with other complementing products/brands and widen the reach of their target market.

10. To save the bottom line

Make sure the promotions that fail to work do not leave an adverse impact on your bottom-line.
How do gift cards help as Consumer Promotions tool?
Business owners can blackout gift cards - block redemption - for a specific period of time, such as during peak season, etc.
Business owners can run fixed discount promos, payable to customers via e-Gift Cards, based on bill value.
Business owners can convert expired gift points from loyal customers into instantly redeemable mobile gift vouchers.
Our gift card promotions processing product QwikPromox has capabilities to design & deliver highly targeted single and multiple promotions, based on store locations, time periods, bill value, product category, SKUs, among others.