What is sales promotion?

In 2025, sales promotion is no longer just a short-term sales tool. It’s fast becoming one of the smartest, most tactical ways for brands to drive growth, build loyalty, and collect valuable first-party data. Here’s why.

Consumers Expect Instant Value

Today’s buyers want more than vague brand promises. They want clear, instant rewards. New research shows:

• 60% of consumers prefer fewer but more personalised offers (Boston Consulting Group).
• They expect experiences that deliver real value upfront.

Well-designed sales promotions—from prize draws to loyalty rewards—cut through and deliver immediate impact.

Marketers Need to Prove ROI

The pressure on marketing teams to show measurable returns has never been higher:

• 83% of marketing leaders say proving ROI is their #1 priority (LinkedIn 2024).
• 64% say next year’s budget depends on this year’s proven results.

Sales promotions deliver clear metrics—redemption rates, sales lifts, sign-ups—making them an ideal tool to demonstrate value.

First-Party Data Is Now Essential

With third-party cookies disappearing and privacy rules tightening, brands need direct relationships with their customers. Sales promotions help collect GDPR-compliant data while giving customers something of real value in return:

• Prize draws, digital loyalty programs, and cashback offers allow brands to build rich first-party databases.
• This data gives brands a crucial edge as the market becomes more competitive.

Sales Promotions Go Far Beyond Discounts

Forget blanket discounts. The modern sales promotion toolbox is much more sophisticated:

• Drive Trial: Sampling and “Try Me Free” offers convert 35% of trialists into same-day buyers (SoPost).
• Build Loyalty: Instant rewards in loyalty schemes are preferred by 65% of consumers.
• Boost Engagement: 93% of marketers now use gamification to lift engagement and conversion.
• Gather Data: Digital-first prize draws and cashback offers allow for rich, opt-in data capture.

How Brands Are Using Sales Promotion Tactically

• New product launches: Gift-with-purchase creates urgency and buzz.
• Defending market share: Cashback offers and prize draws help brands hold ground without slashing prices.

The Bottom Line: A Tactical Growth Engine

Sales promotion isn’t about quick wins anymore. It’s about building long-term customer relationships, fuelling data-driven marketing, and creating measurable growth.

The smartest brands see SP as a sharp tactical weapon that delivers immediate results and sets them up for sustainable success. In today’s crowded, regulated market, that’s a powerful competitive advantage.