Technology in promotion

Technology in promotion means using digital tools such as websites, social media, apps, search engines and email to communicate with customers. It has widened the ways a business can promote, because a message can be put online and seen by customers far beyond a local shop or a single advert.

Reaching customers online

Online promotion can reach customers where they already spend time, often on phones and tablets. A small business no longer needs a huge budget for a national television advert to be noticed by customers in other towns. It might post a short video, run an online advert, publish a webpage or send an email to people who have signed up. These methods add to older ones, such as sponsorship or special offers; they do not replace them.

• A local dance school posts clips of classes on social media, so new students can see what lessons are like.
• An online game shop puts a trailer on its website and shares it through its app, reaching players who rarely watch television.

Using customer response data

Digital promotion can automatically collect customer response data: how many people viewed a post, clicked a link, opened an email, shared a video or used a discount code. This shows which messages and channels are working. The business can then adjust the campaign, for example by changing the wording, moving budget to the best channel, or sending a follow-up offer. This is more precise than a poster or newspaper advert, where it is harder to tell who responded.

Worked example: A skateboard shop promotes a new backpack with a social media video and a banner on its own website. The video gets 5,000 views but only 40 clicks. The banner gets 300 clicks and its discount code is used 60 times. The response data shows the banner is turning more viewers into customers, so the shop adds the discount code to the video and gives the banner more space on its homepage.