5 Reasons Customer Promotions Matter to Your Small Business

As a small retailer, you know that driving customers through your front door can be a real battle sometimes. Offering special promotions can go a long way in providing excellent retail experiences that will make your store a customer magnet.

According to Fivestars, promotions are powerful tools that have the ability to drive up to 70% more store visits on any given day. As if that’s not reason enough, here are 5 more reasons promotions are an effective way to capture your customers’ interest and boost retail sales:

Why do Promotions Matter to Small Businesses?

1. They Lure New Customers Away From Competitors – As suggested by Small Business Chron, offering a reduced price on a popular item can help you lure customers away from competitors, which could potentially turn them into regular shoppers.

If for example, you’re a small electronics store that’s competing with a large retailer, you could offer a popular cell phone model at a discounted price for a limited time. If you go out of your way to serve the customers well during the purchase process, they may be inclined to come back.

2. They Win Over the Community – Build a great reputation for your business by organizing a promotion that supports a worthy cause. Does your town need help raising funds for the local animal shelter? Let customers know that a portion of the proceeds for their purchases will be donated to the cause.

Not only will you be helping your community, you’ll capture the attention and interest of customers who like to think their hard earned money is contributing to a worthy cause, which can lead to more business for you.

3. They Prompt Repeat Purchases – Airlines and hotels use rewards programs to encourage customer loyalty, and you can copy their success by rewarding repeat customers. Own a coffee shop? Create a rewards card that gives returning customers a free cup of coffee after five or 10 purchases.

“Customer loyalty programs should increase customer happiness and retention,” says HubSpot. So put some real thought into your offer. If you were in your customers’ shoes, would the offer inspire you to make a return visit to your business?

4. They Persuade Reluctant Consumers to Give You a Try – Offering free or discounted products and services is a good way to get people to try out your business for the first time, which may lead to a purchase and even repeat visits.

If you’re the owner of a specialty chocolate shop, for example, you could pass out samples of some of your best chocolates or have a free chocolate-tasting class to entice first-time buyers. Promotions such as these can be attractive incentives to choose you over another business.

5. They Provide Information – A well-planned sales promotion can provide you with golden opportunities to convey important business information to potential customers that will aid them in making a purchase decision. This can help you push products or services that are unfamiliar to consumers.

Hosting an open house, for instance, will give you a means to meet and greet potential customers and casually answer any questions they may have. You could also pass out informative pamphlets to attendees, along with a special discount or promotion.


A sales promotion is designed to entice a customer to take a specific action, like making a purchase or requesting more information.  Sales promotions offer a number of advantages to small businesses, including enticing new customers, encouraging repeat business, and beating out the competition.

Just make sure that your promotions are thoughtful, improve the customers’ experience with your brand, and make them feel special and you’ll be well on your way to driving more foot traffic and boosting in-store sales.


Sherene Funk is the author of the contemporary romance Autumn in Your Arms and two small business e-books. She is a voracious reader who owns more books than she can ever read in this lifetime. A graduate of Brigham Young University, she worked in advertising for many years before moving to her current writing position at Rain Retail Software. She researches non-stop to see what successful retailers do and loves to share what she learns with small business owners.