What Is Pull Strategy?
Pull strategy is a strategy in which companies aim to boost the demand for their product and entice consumers to their products. It is also called a pull promotional strategy that responds to the customers’ demands in real-time. This strategy helps companies to invest only in those products that customers demand and avoid the carrying coosts of inventory that may not sell.
Significance of Pull Strategy in an E-commerce Shipping and Delivery
Pull strategy minimizes stock on hand and leads to better inventory management. Here are some of the significance of the pull strategy.
- No cost of carrying inventory
The pull strategy helps businesses to drive customers toward the products without incurring the associated cost of carrying inventory. It can thus lower the cost of goods sold and boost its profit margin.
- Builds consumer loyalty
This strategy uses various marketing activities to attract consumers to buy the products. It establishes direct contact with consumers and boosts consumer loyalty.
- Cost-effective
The pull strategy creates a scenario in which consumers actively seek out the product. It eliminates the need for conducting outbound marketing. So, it proves to be cost-effective for the business.
- Determines consumer feedback
This strategy is useful to test a product’s acceptance in the market by acquiring consumer feedback on the product. Based on the feedback, the business can decide whether to increase or decrease the production and sales of the particular product.
Prerequisites for Pull Strategy
Here are some of the prerequisites of pull strategy
- A pull marketing strategy can be used independently or in combination with a push marketing strategy.
- The processes involved in pull strategy create enough value for a product or brand and attract customers to buy the product. This can be done through advertisements, social media promotions, or the brand website.
Use Case With Pull Strategy
Suppose company X is into the manufacturing and delivery of quiet fans. It can use the pull strategy to drive the demand for quiet fans among consumers through several Instagram and Facebook advertisements, video promotions, and other marketing campaigns. In addition to consumers, the distributors and retailers will also inquire about stocking the quiet fans at their stores. The pull strategy thus drives consumers, distributors, and retailers to the product. Thus, company X will increase its sales of quiet fans and will incur business profit.