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Do push sales really work?
Most companies, even with replenishment systems in place, end up pushing sales at the end of each month and quarter. Some do it even at the end of each review period, say week or 10 days. The tendency is more pronounced where sales teams are measured on primary sales instead of secondary.
Such pushes do lead to resistance from the customers and hinder smooth flow of products. We see large spikes in sales during push periods, followed by a lean patch. Product assortments, freshness and ROI take a beating. In certain cases, the extra push comes back as sales returns or has to be liquidated at a discount.
If we want to maximize sales and profits, now as well as in the future, we should work actively to minimize the push and then eliminate it altogether.