Most marketers are well versed in an annual calendar of campaigns, with zero ties from one campaign to the next. When a promotion comes to an end, it really comes to a halt. It’s a full stop, wrap-up, and wipe your hands clean of it until next year. The current method resembles the image below, three stand-alone promotions with little to no shopper knowledge being gained. This is how the advertising industry has been operating for years, but is it really the best we can do? We think not.
Our last blog, “The Philosophy of Purchase-Linked Promotions™”, talks about what happens when marketers link promotions month-to-month, season-to-season, and year-to-year. A simple, yet effective enhancement that provides better value to the current method of an annual calendar of campaigns.
In today’s blog we’re going to discuss three different types of Purchase-Linked Promotion™ (PLP) solutions:
- One & Done
- Collect & Get
Let’s take a look at each type of PLP and where the value comes from as marketers progress from one to the next.
1.“One & Done” :
The "One & Done" solution is excellent if marketers are looking to drive trial, build a shopper base or increase sales volume. It’s a fast and simple solution to enhance current campaigns and is the promotion type that most closely relates to marketers’ current approach with the added benefit of data collection and receipt analysis.
The process is simple - participants purchase a product, upload a photo of their receipt and product to a microsite, and get rewarded for their participation. Easy, right?
The typical promotional period is less than two months, and is designed to attract new users, brand-switchers, and shoppers who are price sensitive.
Some of the key data points collected for a One & Done-based promotion include:
- Number of participants, purchases, and rewards;
- Tracking against established goals and past performance benchmarks;
- Share of participants, transactions and sales by region, retailer and store
When applied to a promotion, these simple metrics can provide excellent insight into consumer behaviour, retailer compliance, and geographical impact.
2.“Collect & Get”:
A slightly more advanced version of Purchase-Linked Promotions™ is what we call a “Collect & Get”. This promotion style is designed to encourage repeat, cross-brand, or assorted SKU purchases and is perfect for rewarding loyal shoppers who buy multiple times.
Much like the One & Done solution, participants make a purchase, upload a photo of their receipt and products and are rewarded for their participation. The difference with a Collect & Get is the collection of credits over a series of shopping trips. A shopper will earn credits with each qualifying purchase and once they reach a credit threshold they will be rewarded.
This promotion type is well suited for campaigns running anywhere from 2-6 months (think seasonal), giving shoppers enough time to participate multiple times throughout the promotion period. It’s a great choice for retailer and product loyal shoppers.
The extended timeframe and multiple purchases scenario provide a larger collection of data points, such as:
- Number of participants, purchases, and rewards given;
- Social sharing and referrals;
- Share of participants, transactions, and sales by region, retailer and store;
- SKU mix, average transaction value and compliance by retailer;
- Demographic, behavioural, and supplemental “declared” data (i.e. Surveys, feedback, messaging);
- New vs. existing customers (from past promotions)
When compared to the “One & Done” promotion, the larger collection of data points provide a greater level of insight into consumer behaviour, retailer compliance, SKU level performance, and demographical and geographical impact.
The most advanced level of Purchase-Linked Promotions™ is the "Always-On" approach. This particular strategy is one that marketers will build to over time, until they get to the point of using two-way conversations and multiple promotions to keep consumers engaged year-round. An ideal scenario for 1:1 marketing and maximized sales, it is one that takes commitment to using data collection and receipt analysis to create a more comprehensive view of their consumers.
Observing the image below we can decipher where the increases in consumer knowledge is gained. As we move from "Promotion #1" to "Promotion#3" there is an increase in supplemental data collected as consumers become better acquainted with a brand. The blue "Subscribers" line represents the ability to build a CRM database of highly engaged consumers, while the teal "Always On Marketing & 1:1 Messaging" line shows how marketers keep participants and subscribers engaged year-round.
A natural increase in consumer insights will mature as the Always-On strategy is applied. Marketers will develop the ability to provide context-rich messaging for segmented audiences to generate a more personalized brand-to-consumer experience.