By: Mickey Addison
Fuel prices have dropped around 15% in the last couple of months. This is a good opportunity to transfer some of these savings-if fuel is an important part of total operation cost- into “flash promotions” independently of your yearly scheduled promotions plan.
-“Flash promotions” create hype and expectancy. They generate revenue in a short period of time. Many airlines use this practice to generate cash flow when fuel prices drop-since this cost is about 30% of total cost. I follow this industry closely and try to buy when these promotions occur.
-On the other hand, “yearly scheduled promotions” are part of your brand loyalty program and should be consistent throughout time to develop your customer base which identifies themselves with certain promos and come back year after year because of these promos. They also increase traffic-virtual or physical- and revenue.
-The challenge for flash promotions is awareness, flexibility and the ability to implement and execute in a prompt manner. This is when the marketing team has to develop a catchy flash promo and implement it ASAP. This generally involves a number of stakeholders and launching it is a challenge. It should be short and simple. The more complicated the more chances of failure. The rewards are considerable and a good way of being dynamic in your marketing mix.
Remember, Creativity and Innovation every day.