Do sales promotions work?
Of course they do. Why else would companies spend millions doing them? They must have proven successful in getting sales. However, when it comes to building brand loyalty, sales promotions might only introduce a new customer to your brand but will not make them loyal. A person that is in different about a particular brand will simply pickup the better bargain item that meets her minimum needs and that is exactly the type of person that sales promotions attract. In fact, some experts view sales promotions in such a negative light that they believe it erodes brand loyalty.
Building brand loyalty requires a lot more than providing the occasional bargain. I believe building brand loyalty requires lots of good PR, consistent branding and advertising, and most importantly building good relationships with your customers.
