Microsoft Shifts to New Marketing Strategies to Boost Surface Tablet Sales

Microsoft is trying out new innovative marketing strategies to increase sales of its Surface tablets.

During the National Retail Federation's Big Show in New York City last week, the Redmond-based company touted its Surface tablets.

In 2013, through Microsoft's partnership with third-party companies like AmorActive, Anthro and Incipio, the company was able to boast that its tablet is better than a laptop or iPad for some productivity-minded professionals.

Some retailers utilize Surface Tablets for "assisted selling" and mobile Point-Of-Sale (mPOS) solutions that make transacting less stressful.

At the Big Show, Microsoft moved on with its strategy by partnering with companies that offer suites of hardware, software and gateway solutions for safe mobile and online transactions for retail, AnywhereCommerce and MagTek.

In a phone interview, Surface senior manager Biran Eskridge told InformationWeek that some public data implies that sales of its Surface are doing fairly well. However, he cannot share sales figures earlier than its quarterly earnings report.

The search-targeted advertising company Chitika calculated that Microsoft's Surface and Surface 2 tablets' usage in the U.S. and Canada after Christmas increased by .5 percent compared to 1.8 percent before Christmas.2.3 percent.

Also, retail analytics firm InfoScout said that the $199-Surface, specifically the pioneer model was a popular item on Black Friday. It was, in fact, the best-selling item at Best Buy that day.

The increase could be a result of the mark down of the tablets' prices.

"We've seen that limited price promotions will often cause an uptick in sales for our other products," Eskridge said of the discounts. He also said that though the tablet's price attracts a customer, the customer might purchase the more expensive Surface Pro 2.

However, though the demand for Surface tablets increased, the demand is still "pretty flat,' said Forrester analyst David Johnson to Information Week.

Some suggest that by making the mark down permanent, the company might possible increase sales.

"It was important for us to have an intriguing offer around such a busy shopping weekend," Eskridge added. However, he implied that they "could generate some interest with the promotion."

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