EFFECT OF SALES PROMOTION ON CUSTOMER RETENTION (A CASE STUDY OF NASCO LIMITED)

ABSTRACT This study examined the influence of sales promotion on consumer retention, with a particular focus on the Nigerian beverage industry using NASCO in Plateau State as a case study. Sales promotion has increasingly become a strategic marketing tool, not only to boost short-term sales but also to foster long-term customer loyalty. The objectives of this research were to identify the influence of sales promotions on consumer retention, examine the effectiveness of different promotional strategies, and determine which tools most significantly impact customer loyalty. The study adopted a descriptive research design with a sample size of 50 respondents selected using Taro Yamane’s formula. Primary data were collected through structured questionnaires and analyzed using both descriptive statistics and inferential techniques with SPSS version 20. The findings revealed that sales promotions significantly influence consumer retention by encouraging repeat purchases and fostering brand loyalty. Loyalty programs, discounts, and free gifts were identified as the most effective promotional tools, while coupons were considered less impactful. However, the results also indicated that not all promotions lead to long-term loyalty, as some consumers viewed promotions as transactional rather than relational. The regression and ANOVA results confirmed that different types of promotional tools have varying levels of effectiveness in sustaining customer relationships. The study concluded that while sales promotions enhance consumer retention, their success depends on careful planning, targeting, and integration with broader customer relationship management strategies. It recommends that businesses adopt a balanced mix of promotional tools, prioritize loyalty programs, leverage technology, and regularly review their strategies to remain competitive.