What’s The Alternative To Price Promotions?

24th August 2023

Updated 28/11/2024

Offering price promotions is a marketing tactic that has been used for years by consumer brands, including retailers, airlines, and service providers to name a few.

Tactically, price promotions are effective in the short term, emphasised by the fact ‘69% of shoppers now seek more deals and coupons online’.

However, promotional pricing should be used sparingly as it can lead to numerous issues, including price erosion and loss of prestige. 

Before we get into the alternatives to price promotions, let’s take a closer look at promotional pricing as a whole. 

What Is Promotional Pricing?

As the name suggests, promotional pricing is a type of sales strategy that involves a brand temporarily reducing the price of a product or service. 

This is in the interest of appealing to and attracting customers and prospective customers in order to drive sales. 

Types of promotional pricing include, but are not limited to:

  • Buy One Get One Free – Often referred to as “BOGOF” deals, this is a type of sales promotion where customers get a free or discounted product when they purchase a specific product.
  • Flash sales – These are very short sales (sometimes only lasting for hours) that can help to acquire new customers and unload excess inventory.
  • Coupons – Coupons offer customers discounts for a particular product.

So, what’s the alternative to price promotions?

Getting rid of price promotions forces brands to become more creative, but this doesn’t mean that there aren’t multiple options out there. 

The alternatives to price promotions include, but are not limited to:

  1. Value-added promotions 
  2. Competitions 
  3. Brand partnerships 

1. Value-Added Promotions 

A highly effective alternative to price promotions is value-added promotions. 

Using value-added promotions is a technique that involves adding an incentive with a high experiential value for the customer, without reducing the price, revenue, or margin. 

The biggest key to keeping consumers engaged without causing price erosion is not to offer them something for less, but instead offer something more.

An incentive might be offering a bonus product or gift if you spend over a certain amount, for instance. That said, the incentive must be relevant to the target group.

Added value promotions allow marketers to raise the profile of their products, can help to generate sales during the period of the promotion, and be seen by consumers as a brand that offers something extra.

Through the use of value-added promotions, then, marketers can maintain and increase brand value in the long term whilst avoiding cheapening or reducing a brand’s image.

2. Competitions 

Another great alternative to price promotions is offering competitions for your customers. 

The benefits of hosting a competition are vast for an array of brands, from attracting new customers to building brand awareness.

Relevant prizes incentivise customers to take part in competitions, encouraging people to engage with your brand but also providing a brand with enough exposure it’s almost always worth the value of the competition. 

Research on online competitions supports this, finding that ‘62.13% share the promotion with a friend in order to suggest they take part too’, in turn emphasising the positive impact competitions can have in replacement of price promotions. 

3. Brand Partnerships 

Lastly, brand partnerships are a good alternative to price promotions. 

A brand partnership is a strategic agreement between two parties, designed to create or promote products or services. 

Not only does partnering with the right brand expose your brand to a new yet highly relevant audience, but it also garners greater trust from audiences through the public association it creates.

In turn, this can increase brand awareness and boost brand authority whilst also driving conversions without you having to compromise the value of your product or service through price promotions. 

4. Exclusive Loyalty Programs

Creating exclusive loyalty programs is an excellent way to build long-term customer relationships without resorting to price cuts. By offering tiered rewards, early access to new products, or special members-only events, brands can incentivise repeat purchases while maintaining their premium image.

For instance, a loyalty program could reward customers with points for every purchase, which can be redeemed for exclusive products or experiences. This fosters a sense of exclusivity and value, motivating customers to continue engaging with your brand. Over time, this approach enhances customer retention, boosts lifetime value, and positions the brand as a trusted choice in its market.

5. Personalised Marketing Offers

Tailoring offers to individual customers’ preferences is a powerful way to replace traditional price promotions. Instead of blanket discounts, use data-driven insights to craft personalised recommendations, birthday offers, or special deals based on purchase history.

For example, an FMCG brand could send customers personalised product bundles or limited-edition items aligned with their preferences. This approach not only drives sales but also builds deeper emotional connections, as customers feel recognised and valued by the brand. It’s a win-win: your customers get a unique experience, and your brand avoids the pitfalls of price erosion.

These alternative methods to price promotions can greatly benefit businesses and most importantly, help to avert price erosion.  

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We are Lime, an independent partnership and sales promotion agency based in London. 

Our expert sales promotion team has years of experience in delivering strategic promotional campaigns in the FMCG category.

If you’re interested in learning more about our promotional campaigns and the work that we do, please get in touch with a member of our team today on 02073179280 or email Charlie@wearelime.co.uk. 

And for more insights, check out our blogs, including How Do Dairy Brands Moo-ve With The Times? and The Power of Partnerships: Returning Partners.

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