Whether you are online or in-store, chances are you have experienced an unexpected slump in sales at some point or another. Fierce competition makes for a very dynamic market, and understanding how to increase product demand under such circumstances isn’t always clear. Whether you’re dealing with less than optimal sales, or your business is booming and you simply want to keep it that way, here are five ways any business can increase their product demand.
Optimize the rest of your assortment
If you offer the right products at the right time, you will attract more customers. Having solid data on your assortment can help you determine what is selling and what isn’t, and ensures that you maintain your stock correctly. You can use historical inventory data and purchasing data to predict future sales of various products and further optimize your assortment. This can in turn help you avoid running out of stock of a popular product, which could lead to customers looking elsewhere for the products you sell.

Additionally, make sure that you have complementary products up for grabs. If you are selling pencils for example, you could easily increase your sales by selling erasers alongside them. Having a basic idea of what other products customers may buy in conjunction with a certain item further optimizes your product portfolio, and makes your store more attractive to consumers. Amazon takes advantage of this idea by having a recommended purchases engine, suggesting various products to customers based on what others bought in addition to a particular item. This suggested products engine reportedly accounts for up to 35% of their revenue.
Offer multiple deals
Customers love having several options. It gives them the feeling that they are choosing their own adventure when purchasing, and this psychological trick in turn makes your products look more appealing. You could, for example, offer different shipping (e.g. standard vs. priority) for your products. Alternatively you could offer multiple warranties for an item. No matter what you choose to differentiate, giving your customers more than one option will definitely make your product stand out compared to the competition, and can help you increase your sales as a result.

This method has become increasingly popular among retailers in the past few years, and for good reason. Simply put, it works very well. Offering multiple prices for different features of a good is part of the broader increase in personalization that the retail industry is experiencing. Another advantage to this method is that it’s a relatively easy way to personalize your store, requiring minimal investment of time and resources to achieve.
Create smart promotions
Promotions are probably the most well-known strategy for increasing sales. They also happen to be one of the oldest methods of increasing sales among retailers. Offering promotions or discounts is simple and effective way to get customers to notice a product, and many consumers can’t turn down a good bargain. When done correctly, promotions are almost guaranteed to boost sales to a certain degree.

There are a few pitfalls to avoid when implementing this strategy, though. Firstly, promotions need to be well-timed according to the rest of the market. It’s possible that competitors will create their own discounts in reaction, leading to unwanted price wars that can deeply cut into your revenue, weaken the impact of any discounts you make, and even damage your brand image in the process. That’s why there’s an emphasis on creating “smart” promotions for your products, preferably using fresh data on your market and competitors, so you can identify prime opportunities to promote your products effectively.
Increase visibility
Whether you are selling online or in-store, visibility of products is key to increasing their sales. For brick-and-mortar retailers, where exactly your products are placed can make a world of a difference in how much your customers notice and buy them. When trying to increase the demand of a product in-store, try to make sure that they are placed at or near eye-level on shelves. Additionally, creating an eye-catching display of promoted products or featured products guarantees they will be noticed by every customer walking into your store.

For online retailers, display of products is also a valuable tool in increasing their demand. The first step in optimizing a product’s display online is making sure you have the perfect product photo, as it’s the first thing that a customer sees while browsing your assortment. It seems like common sense, but some retailers haven’t quite gotten the message yet…

...yeah, clearly not everyone understands the importance of a product photo.

Additionally, make sure that customer reviews are easily accessible on every product page. Customers love seeing reviews of products, and how many reviews an item has makes a huge impact on how much the customer wants to buy them. Lastly, as an online retailer, your homepage is essentially of similar importance to a window display in-store; it gives you the opportunity to increase the demand of your product(s) of choice by highlighting them for all to see. Therefore, you want to make sure that any product you’re trying to feature is displayed clearly on your homepage, at the top of your assortment list, or other places on your site that give them center stage.
Create an enticing loyalty program
Increasing demand isn’t just about enhancing your products and optimizing their appeal. To increase the demand of all of your products in the long term, you need to encourage customers to come back to your store. Loyalty programs and clubs are a great way to do this. Loyalty programs essentially rewards consumers who decide to go to your store over and over, differentiating their potential offers from regular customers and ensuring that your deals are far superior to competition for them. It is essentially an exclusive form of promotion; rewards can be in the form of discounts, free items, buy-one-get-one-free deals, and more. They can also be quite personalized; for example, many retailers send out generous offers to members as a birthday gift.

Loyalty programs give a personalized feel to your brand. They also give customers the incentive they need to come back so long as your loyalty program is worth it. The key to a successful loyalty program is finding the balance between increasing your sales without taking too much of a cut in revenue when offering special benefits. Again, your loyalty program needs to be worth it, but if you don’t want to sacrifice too much either. Taking a look at your product portfolio, historical sales data, and real-time market conditions can help you determine where you can sacrifice a bit of revenue, and alternatively, which staple products don’t need to be used as an incentive to return.

Conclusion
Increasing product demand can be tricky. Intense competition within the retail industry can complicate how you sell your products, make pricing decisions riskier, and can make customers pickier about where they buy their goods. Fortunately, making your products more appealing doesn’t have to be rocket science. By optimizing your assortment, offering multiple deals, creating promotions the right way, increasing your products visibility, and creating a solid loyalty program, your products are bound to stand out amongst the rest and entice customers effectively. Just remember, all of these methods start with solid data and analysis in order to ensure they are successful. With the right data in addition to these strategies at hand, you will not only increase the demand of your products, but also increase your revenue in the process.

Author's Bio: 

Competera is a pricing optimization SaaS company for online and brick-and-mortar retailers to supercharge pricing with quality guaranteed competitive data scraping, 360° market analytics, rule-based and AI-driven price recommendations. AI-driven price recommendations boost profit margins by 20-50% and increase sales by 50-100% using demand predictions. The company was founded in 2014 and now counts >100 employees in 5 locations: United Kingdom, United States, Ukraine, Russia, and Singapore.
Our website: https://competera.net/