How To Optimise Performance of Prize Promotions!
In a first of its kind study we have put more than 400 consumer prize promotions under the microsope to reveal 5 actionable insights for marketers…
Prize promotions, such as prize draws, competitions and in-pack instant wins, have long been at the heart of the FMCG sector, with brands frequently turning to promotional marketing as a way of driving sales and customer engagement. Our estimates suggest in the UK, the value of prizes given away by FMCG alone is around £50 million.
Pick the right mechanic
Consider the brand, the objective and the consumer. Some love competitions, others love daily prize draws. Pick the right mechanic to increase play rates and most importantly, meet the brand objectives. Consider upcoming HFSS regulations, if you want to build an opted-in database, use a promotion, we typically see a 30-35% opt-in rate from entrants.
Cash is no longer king
The type of prize you offer also has a major impact on participation rates. Gift vouchers are overwhelmingly the most popular type of prize. Promotions with gift vouchers receive more entries than money, holidays and event tickets prize types combined. Vouchers probably win because although they are highly flexible, and feel like cash, they are also tangible, and unlike cash, won’t get lost in the weekly spend. They will provide a treat, or a particular item. We may think that cash is best, but it usually ends up paying routine bills or a mortgage, whereas vouchers can generally be used for an enjoyable luxury. And they can provide the perfect amount of freedom without the anxiety of too much choice.
Go for volume, not just high value
Although you may think a single massive prize is going to draw the crowds, the reality is the more prizes on offer in a promotion, the higher the number of entries you will receive. It may seem odd, but many smaller prizes are more effective than a single large one at maximising engagement and participation. Brands should be pushing the number of prizes on offer as consumers feel that this will give them an increased chance of winning, and it is this that will motivate them to participate.
Everyone likes to win a prize
Analysis of PromoVeritas’ data against the CACI profiling system, showed a strong relationship between someone’s level of wealth and their participation in a prize promotion. Specifically, the wealthier a demographic (to a point), the more likely they were to participate in a prize promotion. These findings challenge the conventional assumption that affluent groups are less likely to engage in promotions since they’re already wealthy, while those more stretched, would look to boost their income by winning prizes. So, prize promotions can be an effective way to engage with and gather data on those with high levels of disposable incomes. Luxury brands and those catering to high-end markets could benefit from using prize promotions as a key pillar of their marketing strategy. One might have thought financially stretched groups would use promotions as a means to alleviate their struggles. Instead, the data suggests that wealthier groups are using promotions to maintain their lifestyles while cutting back in other areas.
If it works – build on it, don’t change it
Do not be afraid to repeat a successful formula, perhaps refresh it with varied prizes or graphics. A great example of this is Cadbury Crème Egg who have been running Hunt the Egg each year for the past 12 years. Controlled (Prize-winning) Product Placement is amongst the range of services we provide, along with manning the Crème Egg Hotline. WATCH the promotion in action.
Run It Right.
Promotions can be a great brand differentiator and cost-effective marketing tool, but they also carry risk. Risk of fraud, abuse, too many of the wrong thing, unexpected costs and complaints about fairness and integrity. This can all lead to reputational and financial harm. So always make sure that your brand and team is protected, that you have used a professional promotions specialist such as PromoVeritas, to oversee the terms and conditions, the messaging on product packaging and POS (point of sale), the promotion mechanics and the independent winner selection. Regular lawyers just won’t know about what can go wrong, and crucially, how to prevent disasters. Run things right.
Contact us for advice on your next promotion or a FREE no obligations chat, email or give us a call.
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Delivery
Trust us to take care of every detail so your prize winners, wherever they are in the world, have a memorable brand experience and will tell their friends and family about forever.
Digital
Trust us to design and build engaging and memorable digital experiences for your audience anywhere in the world, we can roll out in multiple languages and countries, securely capture and manage first party data with data kill dates and right to forget support built-in.
Insights
Trust us to safely manage consumer PII and prepare actionable insights & learnings from your promotion to drive your business forward.
Legal Advice
Trust our lawyer and compliance team to draft lawful Terms & Conditions, translated when necessary and to brief you on the rules & regulations governing participating markets.
Promotional Expertise
Trust to advise you on the right promotional mechanic to meet your objectives – Win £ $ €, Enter a Game of Skill / Competition, Claim a Free Gift with Purchase – we know which lever you should pull and what can legally be run in-markets around the world.
