How to use consumer promotions in marketing campaigns

Brands use consumer promotions to encourage specific actions like trying a new product, buying larger quantities, or making a repeat purchase.

A snack brand might use a digital rebate to get shoppers to try a new flavor. An online retailer might offer free shipping on orders over a set amount to grow average order size. A coffee chain might use app-based rewards to keep regulars coming back each week.

Across retail, e-commerce, and consumer packaged goods (CPG), brands and retailers use these tactics to influence purchasing decisions and drive sales.

Here’s a look at the most common types of consumer promotions, when to use them, and real-world examples of successful campaigns to draw inspiration from.

Consumer vs. trade promotions

Consumer and trade promotions both aim to increase sales, but they’re designed for different audiences:

• Consumer promotions target shoppers directly. Brands and retailers use them to give consumers a reason to buy now.

• Trade promotions target retailers, distributors, and other channel partners. Brands that sell through those partners use them to earn shelf placement, in-store displays, and retailer support.

Many brands run both types of promos. For example, a beverage company might offer retailers an incentive to feature a product in an in-store display while running a consumer rebate to encourage first-time purchases. The display gets the product noticed, and the rebate gives people a reason to try it.

Pros and cons of consumer promotions

Promotions can boost sales and build loyalty, but they come with real trade-offs. Here’s what to consider.

Benefits

• Encourage first-time purchases: A promotion lowers the risk of trying an unfamiliar product, making it easier to win over new buyers. In one study of grocery shoppers, 75% said they’d try a different brand if it cost less than their usual option.

• Drive measurable results: Promotions can create a short-term sales lift. Digital offers make it easier for brands to track redemption rates, purchases, and promotion ROI.

• Collect first-party data: Sweepstakes entries, receipt-based rebates, and loyalty program sign-ups provide brands with opportunities to gather customer information and better understand their audience.

Drawbacks

• Reduced profit margins: Discounts reduce revenue per sale, including purchases customers might have made at full price. That means a promotion can increase sales without necessarily increasing profits.

• Deal-dependent shopping: Frequent or predictable promotions can train consumers to wait for the next deal. A 2026 survey found that 91% of Americans have delayed purchases to wait for a discount, with 61% willing to wait a month or longer. Deep discounts can also make high-end products feel less premium or exclusive.

• Fraud risk: Rebates, gift cards, and other rewards can attract fake claims and duplicate submissions that drain your budget.

Types of consumer promotions

Consumer promotions come in a wide range of formats. Here are eight common types and when to use them.

Discounts and coupons

Discounts reduce the price shoppers pay, either by a percentage (e.g., 10% off) or a fixed amount (e.g., $20 off). Coupons are discounts that shoppers claim with a digital promo code or a physical voucher. It’s common to run discounts for a limited time to create a sense of urgency.

Best for: Driving quick sales among price-sensitive shoppers and clearing excess inventory.

Samples and free trials 

Samples let consumers try before they buy. A body wash company can describe a new scent in an ad, but a sample packet lets shoppers smell it for themselves. 

Brands that sell physical products might hand out samples in stores, mail them to homes, or include them as free add-ons to online orders. Digital services use free trials the same way, giving new users temporary access to a product before they decide whether to subscribe.

Best for: Launching new products, especially ones whose benefits are easier to experience than explain through advertising.

Loyalty programs

Loyalty programs reward customers for repeat purchases. Common formats include earning points redeemable for rewards, member-exclusive discounts, and perks unlocked after reaching certain spending tiers. Unlike a limited-time promotion, loyalty programs typically run year-round, giving members an ongoing reason to choose your brand over competitors.

Best for: Increasing purchasing frequency and retaining customers.

Contests and sweepstakes

Contests and sweepstakes give people a chance to win prizes such as gift cards, free products, or exclusive experiences like concert tickets or travel. Sweepstakes winners are chosen at random, while contests judge entries on skill or accuracy. Because only a few entrants win, sweepstakes can reach a wide audience on a fixed budget.

Best for: Building brand awareness, generating buzz around a product launch, or collecting first-party customer data.

Rebates and cashback

Unlike discounts applied at checkout, rebates and cashback offers reward shoppers after they make a qualifying purchase. The customer typically pays the advertised price upfront, then gets money back once the claim is validated. It’s common for rebate programs to require proof of purchase before the reward is delivered.

Many brands now run rebates digitally so shoppers can submit receipts online or by phone and receive payouts as digital gift cards, prepaid cards, or PayPal transfers. 

Best for: Encouraging sales while protecting the list price, especially for higher-priced items like electronics and appliances.

Gift-with-purchase

A gift-with-purchase promotion gives customers something extra when they buy a qualifying product or reach a spending threshold. For example, a beauty retailer might include a free travel-size skincare product on orders over $75, or an electronics store might offer a $100 gift card with a new laptop. 

These offers are an alternative to discounts, since the customer still pays full price but walks away feeling like they got more for their money.

Best for: Increasing order value and driving sales without lowering prices.

Referral promotions

Referral programs encourage existing customers to bring in new ones by offering incentives. Some programs reward only the person making the referral, while others reward both the referrer and the new customer. Common incentives include store credit, discounts, or gift cards.

Best for: Acquiring new customers through word-of-mouth recommendations.

Bundles and buy-one-get-one offers

Product bundles combine multiple items into one offer at a lower price than purchasing them separately. Buy-one-get-one (BOGO) offers give a second item free or at a discount. Both encourage shoppers to buy more in a single transaction.

Best for: Growing cart size, promoting complementary products, and moving excess inventory.

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Examples of successful consumer promotion campaigns

Here’s a look at how three brands put consumer promotions into practice.

1. McDonald’s $5 Meal Deal

Promotion type: Value bundle

The campaign: In June 2024, McDonald’s introduced its $5 Meal Deal to bring back budget-conscious customers after a decline in sales. The offer bundled a sandwich, chicken nuggets, fries, and a drink for $5.

The results: According to Numerator, 58% of customers who purchased the deal said it influenced their decision to visit McDonald’s over another quick-service chain. The promotion also helped increase foot traffic and sales, prompting the fast-food giant to extend the offer through December 2024.

This campaign shows how a value bundle can encourage purchases from price-conscious customers without discounting every item on the menu. 

2. Health-Ade SunSip

Promotion type: Sweepstakes

The campaign: When Health-Ade launched its SunSip prebiotic soda in 2024, the brand ran a nationwide sweepstakes to generate buzz around the new product. Shoppers could enter by scanning a QR code on the soda can or engaging with digital ads and providing their email address. Prizes included a year’s worth of groceries and free Health-Ade products.

The results: The sweepstakes generated more than 40,000 entries, giving the new product visibility and helping Health-Ade capture customer information for future marketing campaigns.

3. Maytronics Dolphin Days

Promotion type: Rebate

The campaign: Maytronics, a robotic pool cleaner manufacturer, ran a Dolphin Days promotion offering rebates ranging from $50 to $200 to customers who made purchases at brick-and-mortar stores. The campaign helped local dealers compete on price while encouraging purchases and freeing up warehouse space.

The results: Maytronics reported a significant sales increase from the promotion, surpassing previous highs. This promotion illustrates how rebates can drive purchases through retail partners without lowering a product’s advertised price.

4 tips for choosing the right consumer promotion

An effective consumer promotion strategy starts with identifying what you want to achieve and who you’re trying to reach. Keep these four tips in mind as you compare options.

1. Match the promotion to your goal: If you’re launching a new product, free samples or introductory discounts can encourage first-time purchases. If retention and repeat business are your focus, loyalty rewards and referral programs give customers a reason to come back.

2. Know your audience: A shopper grabbing a $5 snack has an entirely different decision-making journey than someone buying a $1,000 appliance. Small discounts tend to suit low-cost, frequent purchases, while rebates and gift-with-purchase offers can tip the decision on bigger-ticket items.

3. Stay true to your brand: Choose promotions that align with your brand’s image and the experience customers expect. For example, a luxury brand might offer a gift with purchase instead of a steep discount that could make its products feel less premium.

4. Make incentives easy to redeem: A complicated redemption process or delayed rewards can leave customers frustrated. When choosing an incentive provider, look for a wide choice of reward options, fast delivery, easy redemption, and reliable tracking.

The offer gets customers interested. How you deliver on it can determine whether they come back.

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