Limited Time Offers
Can Build Your Business
When it comes to marketing tools, some are more powerful than others. One of the most powerful marketing tools you have at your availability are limited time offers. These offers can increase public interest. They often see people jump on the bandwagon so they can have something before it disappears. Today we’re going to be taking a look at limited time offers. Find out how you can use them to increase revenue for your business.
What is a Limited Time Offer?
The definition of a LTO (limited time offer) may be simple. Knowing precisely what one is can be a whole different story. In its simplest form, it is any reward, discount, deal or special gift a consumer receives if they purchase during a specific period. These offers are usually the most popular around Black Friday and Christmas.
The most important thing to remember is an LTO should be just that. It’s evident limited time offers increase sales. However, some companies try to capitalize on this and end up losing rather than gaining. Some companies have a habit of reintroducing the same deal. They’re hoping the trend will follow on from just a seasonal deal. There’s an issue with this. People might stop buying from you when you don’t have an LTO.
How To Use Limited Time Offers To Your Advantage: When considering your limited time offer, it’s essential to walk in the footsteps of the giants. Some large companies make a fortune all year round when they introduce a simple limited time offer.
Let’s look at Starbucks and their pumpkin spice lattes. It may come as a shock to you but this simple addition to their repertoire accounts for $100 million in revenue. It sells around 424 million units whenever it’s on sale. The pumpkin spice latte is one of the most successful seasonal LTOs and one of the smartest. Starbucks only offers the latte for a limited time. Interestingly, this doesn’t reduce the number of customers they see when they don’t have it. When they introduce this seasonal product, it brings them more customers.
Use a LimitedTime Offer to Launch a Product: If your business is looking to launch a new product or service, it’s a great trick to introduce this product as a limited time offer. An LTO is a simple method which can bring a lot of attention to your company. Additionally, it can create product hype. When you have hype around your product, you can eventually release the product as part of a general release. A release like this can be introduced as “by popular demand.” While it may seem simple, it’s incredibly useful for increasing sales.
Consider the Difficulties: When setting up an LTO, it’s a good idea to consider the difficulties involved. You should always carefully examine the proposal itself and ensure it isn’t a detriment to your existing business. In addition, take into account the need for a limited time advertising campaign. Keep in mind you might need to train a group of employees to cope with the demand.