How Is Promotional Pricing Used—And by Whom?
Promotional pricing is a popular strategy for consumer brands, including retailers, airlines, gyms, restaurants, and service providers. B2B companies also use their own variety of promotional pricing. Brands use promotional pricing to:
- Create buzz when launching a new product or service.
- Reward loyal customers.
- Increase customer traffic.
- Encourage repeat business.
- Move excess inventory.
Promotional pricing is a popular sales strategy. In fact, 80% of marketers say that promotions and discounts are important in their customer acquisition strategy.
Yet the popularity of promotional pricing actually devalues a brand when it’s overused. Most marketers use mass discounting tactics—they offer the same promotions to everyone, creating even more noise in a crowded, competitive marketplace. Instagram has 2 million active advertisers, and digital marketing experts estimate that most Americans are exposed to 4,000 to 10,000 advertisem*nts a day.