5 Reasons Companies provide Promotional Offers

Posted on 02 Dec 2021 by Julian House
Companies provide many promotional offers, and the kind of offer a company chooses reflects its industry. Examples include a fashion retailer offering free shipping or returns on its products and a technology company creating a flash sale for smartphone accessories. Sometimes, companies target new customers with their promotional offers. For instance, online casino promotions frequently aim to attract new players and allow them to try casino games by providing bonuses such as free spins and deposit matches. The expectation is that people will enjoy the experience and return to the provider.


There are also occasions when companies retain customers by providing promotional offers such as loyalty points, competition entries, and product giveaways. These promotional offers aim to show people loyal to a brand that their loyalty is valued. In addition to building relationships with customers, companies use promotional offers to increase brand awareness, meet sales objectives, increase sales volume, and keep up with competitors. Read on for deeper insight into the reasons behind company promotional offers.


Increasing Brand Awareness

Sometimes, a promotional offer aims to raise brand awareness rather than directly impact sales. The idea is to make sure people are aware of a company's products or services so that they will think of the provider when they have a particular need. Often, a company will offer free product samples to make people aware of it.


People who like the product are likely to buy it in the future. They may also purchase other company products and recommend them to others. This word-of-mouth promotion is a vital part of a company's marketing efforts. Over time, using promotional offers to increase brand awareness raises a company's overall profile and expands its reach.


‌Meeting Sales Objectives

Sales objectives are set to give a company's sales team explicit knowledge of their individual tasks which help the company reach its overall goals. Each objective has a measure attached to it, so a company knows if individual and group objectives are met or lacking. Promotional offers are used to assist with meeting sales objectives. There are several popular promotions that companies use for this reason, including:


  • Competitions and challenges advertised on social media platforms to encourage people to interact with the brand and make them more likely to buy items.

  • Product bundles give customers a reason to buy a more comprehensive selection of items they are likely to purchase again.

  • Coupons and vouchers to reward loyalty and encourage customers to continue buying products.


‌Building & Maintaining Customer Relationships

A business can't exist and thrive without creating new customer relationships. When building these relationships, the organisation must ensure that trust exists for a productive relationship. The easiest way to attract new customers is to use a promotional offer such as the promise of a new customer discount.


Attracting customers in this way is only part of the story. Businesses must also retain their customer base. There are several popular ways to do this, including promotional offers. For example, many companies provide customers with loyalty cards that can have points added to them when the customer makes a purchase. People can then use these points to make future purchases, encouraging them to remain loyal to the brand. In some cases, customers can also subscribe to a company's newsletter, which gives them access to special deals and discounts. Using newsletters in this way is a long-term customer engagement tool that proves successful for many companies.


Increasing Sales Volume

Sales volume is a different measurement than revenue. It covers the number of units of an item the business is selling. Together, revenue and sales volume are vital metrics in determining the success of a business. In terms of sales volume, this figure is also a good indication of how successful a company's sales tactics are.


Sales teams often use promotional offers to boost sales volume figures. The most popular offers used to do this include:


  • Complimentary products to introduce customers to new brand items and encourage them to buy them in the future.

  • Discounts on new additions to a range of products so that customers get to know them and go on to buy them.

  • Free trials on subscription services to encourage people to buy into the brand for longer.

‌Keeping up with the competition

Competition is something that every business must consider to survive and grow. It's essential for an organisation to keep up with the competition's actions and to formulate strategies and plans accordingly. Monitoring bonus offers provided by other companies and planning promotions around them is part of this.


For example, suppose a competitor runs a sale on specific items. It may be a good idea to offer reductions accordingly. Alternatively, the business may decide to provide offers on related products. An excellent example is a tech firm selling laptop peripherals to coincide with a competitor offering discounts on its laptop range. Using promotional offers to keep up with the competition is all about being aware of what the competition is doing regarding promotions and planning the best actions to compete with them.



These five reasons companies offer promotional offers all have value. A business must increase awareness of its brand to survive in a crowded marketplace. Likewise, building and maintaining customer relationships, increasing sales, and keeping up with the competition are all vital business concerns. Making the right choices about promotional offers allows the business to take positive action and makes it more likely that the organisation will thrive in a testing and complex commercial landscape.

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