What are Consumer Promotions?

Learn about consumer promotions, typical rewards, how they combat risk aversion and see examples of consumer promotions

Table of Contents

    Download our Guide to Customer Engagement


    About Consumer Promotions

    Consumer promotion is a marketing strategy that increases brand awareness and entices a customer to purchase a product. These promotions are often temporary, designed to generate interest and excitement, increasing sales for a limited time.

    The most popular consumer promotions revolve around two fundamental ideas:

    • Reward the consumer for trying or buying the product.
    • Decrease risk concerns around paying for a product by offering a free trial or sample or another risk-mitigating offers.

    Consumer Promotions - Rewards

    There are many types of rewards you can offer in a consumer promotion that will encourage a consumer to buy a product or make a larger purchase (purchase multiples of a product), including: 

    • Digital coupons or rebates that offer a discount on the product.
    • Special discounts for certain people such as seniors, teachers, first responders, etc.
    • Giveaways and sweepstakes that a consumer is entered into when they make a purchase.
    • Cashback rewards when purchasing multiple products, or BOGO (buy one get one free or for $1). 

    Consumer promotions decrease the price of a product (coupons and rebates) to encourage conversions, or they add additional value to the product (contest and sweepstakes) to make the regular price seem more of a deal.

    Consumer Promotions - Risk Aversion

    Another way a consumer promotion can increase conversions is to show first-time buyers it's safe to buy the product. A few ways to do this include:

    • Try and buy offers, where you can try a product for a limited period or get a free sample to test before you buy a full-size version.
    • Bundling a product with one or more additional products the consumer has purchased in the past or that go together to provide a "full package" offer.
    • Free shipping or returns that help reduce the risk of buying something new. If they don't like it, they can easily return it.

    Many people are wary of trying new products, but consumer promotions can relieve some of that anxiety and risk aversion.

    The Benefits of Consumer Promotions

    The benefits of a consumer promotion marketing strategy are similar to other marketing strategies. First, it builds brand awareness, something every brand needs to do, especially in highly competitive consumer markets.

    This strategy can also build customer loyalty; a brand can create a consumer promotion that provides special rewards and deals for existing customers in a loyalty program.

    Consumer promotions can be used to launch new products or boost sales of existing products.

    This strategy can also be used to get a feel for how price-sensitive consumers might be for a particular product. Marketing can test different coupon or rebate offers to understand the best price point that will encourage the most product sales.

    Examples of Consumer Promotions

    Old Navy

    Old Navy offers a one-time discount on a purchase if a person opens a Navist Rewards Credit Card.


    Lowes offers special pricing when you bundle several appliances together.

    The Shoe Company

    The Shoe Company's loyalty program provides members with free shipping and 5% reward points for every purchase. 


    >> Click to go back to the Marketing Glossary


    Let’s Work Together

    Let's talk about how Snipp can help you develop a scalable and effective customer acquisition strategy.