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promotion-incentives

How to Choose Incentives to Dramatically Boost your Promotion Results

‘People respond to incentives’ – These four words have been spoken by every major economist that has ever lived. The concept of using incentives to motivate a certain action or behaviour has been around since time began. It has been a major cornerstone of many fields of study, as well as one of the most important elements that we use when devising a successful promotion. In this blog we explore how to choose incentives to dramatically boost your promotion results.

 

What is a Promotion Incentive?

An incentive is essentially the ‘prize’ the user has a chance of winning by entering your promotion (another way to think about incentives is the ‘carrot on the stick’ you use to get your audience to do whatever you want them to do). It’s important to remember every promotion is a value exchange between you and your audience:

  • Your business needs the user to perform some type of desired action in order for your promotion to achieve its objective.
  • On the flip side, the user will only perform the desired action because they believe there is enough value in doing so.

 

How to Choose a Promotion Incentive

Choosing the right incentive actually requires that you do the proper preparation for your promotion first. This includes understanding your objectives and target audience, as well how much of a ’barrier to entry’ there is to entering your promotion (discussed in our last blog about promotional mechanics). With that in mind we have included some concepts below to help make the process of choosing your promotion incentives a lot more clearer.

 

Freedom of Choice – The Allure of Cash

‘Cash is king’ and much more desired over types of class promotional prizes such as trips, cars and tickets to special events. What is the reason for this? Simple, cash gives freedom of choice which is a hugely influential factor.

 

Human beings are a broad bunch of people, and if the holiday or car offered in a promotion is not the ideal prize for a particular user the chances of them entering will diminish.

 

Does this mean you should only use cash for promotions? Well no, while this is an important concept to consider when your promotion is aimed at a broad audience it is not always the superior option.

 

Relevance is Key – Reflect your Brand and Target Market

Cash can be a very powerful incentive, especially when your promotion is aimed at the masses, however, the majority of brands do have a well-defined target market. Therefore the best prize is going to one that complements your brand and appeals to your target customer.

 

Remember the objective of your promotion to attract people who will be interested in your brand. If you appeal to the wrong target market you won’t attract the right kind of people. Therefore think like your target customer, understand their needs, wants and desires, and choose an incentive that they won’t be able to resist.

 

Once you can understand this concept you could use a range of different products or experiences as your promotion incentive to great effect. For example, if your brand is sporting related then tickets to a major sporting event or grand final would be highly motivating to any sporting fanatic. If your brand is fashion related then a new season wardrobe or tickets to fashion week would be an irresistible incentive to any fashionista.

 

Perceived Chance of Winning

Every promotion needs a major prize, it’s the lure we use to attract people to enter our promotion. However contrary to popular belief they are not the be all end all to what drives people to enter. Even if your major prize is great it still may not be motivating enough to get consumers to participate if they perceive their chances of winning are remote.

 

How to do you counteract this? Simple, offer multiple smaller prizes instead. Consumers are more likely to enter a promotion that has multiple smaller prizes on offer than one major prize simply because they believe they have a higher chance of winning.

 

One again these smaller prizes need to be on brand and suited to your target market. For example, if your target customer loves skincare products, a high chance of winning a small but desirable skin care relevant prize could win their affections over the slim chance to win a bigger generic prize.

 

Note: Instant Win mechanics are great for promotions when you have multiple smaller prizes on offer. They not only appeal to the consumers chance of winning but appeals to their desire for instant gratification.

 

Some Final Tips on Choosing Incentives

You may now be asking yourself what is the better incentive to use for my promotion? One (or a few) major prizes, or, multiple smaller prizes? Well, why not use both, using a major prize combined with multiple smaller is a great way to appeal to customers from multiple angles, and ensure a high opt-in rate for your next promotion.   

promotion mechanics - toy robots

How to Choose Promotion Mechanics that Drive Conversions

Over the last few weeks Peazie has been educating our audience on what are some of the most important elements used to devise a successful promotion, some of these elements have included mechanics, incentives and creative concepts. While you can argue that all the elements work hand in hand to create a successful promotion we believe there is still some value in examining them individually. So without further ado we present -How to Choose Promotion Mechanics that Drive Conversions.

 

What is a Promotion Mechanic?

Put simply the mechanic is the ‘tool’ or ‘method’ you require a person to use to be able to enter your promotion. For example, the ‘Image Upload Mechanic’ (suitable for a brand engagement campaign) requires your audience to upload a photo to your promotion page (or social channel) in order to be allowed to enter.

 

How to Choose a Promotion Mechanic

There are many different types of mechanics you could choose for your promotion. To understand which one to use it is important to understand the characteristics of each mechanic, what is the objective of your promotion, and what action you require from your audience. We have provided a graph below to help better visualise how to choose a promotion mechanic.
Promotion Mechanic Matrix

Objective

Taking a step back and looking at the big picture you need to ask yourself “What is the reason I am doing the promotion in the first place?” My guess is you are trying to achieve some type of marketing objective. Objectives correspond with each part of the marketing funnel from database growth, to engagement, to sales.

 

Action Required

To accomplish the marketing objective of your promotion will require your audience to complete some type of action. For example, if your objective is database growth then the action you require from your audience is to provide some type of personal details such as an email.

 

Barrier to Entry

This relates to how much effort is required on behalf of your audience to complete the action needed for the promotion. For example, if the only action you require from your audience is to provide an email then your promotion would have a low barrier to entry, which in turn would result in a higher volume of entries. If the action you require involves more effort such as your audience actually going into a store to purchase a product, then this type of promotion would have a higher barrier to entry.

 

Mechanic Type

The above factors will give you a good understanding of how to structure your promotion, this in turn will influence what type of mechanic you use. The type of mechanics can be broken into three broad classifications:

  • Chance Based Mechanics: These require the user to only enter their details for a chance to win the promotion, but requires no further effort than this. An example would be an Instant Win Mechanic where the users enter their details and they instantly find out if they have won a prize (Low Barrier = Higher Volume).
  • Skill Based Mechanics: These require some type of active engagement on behalf of the user to be able to win the promotion, however the effort is related to getting them to actively engage with your campaign. An example would be an Image Upload Mechanic where the user uploads a unique photo to be able to enter the promotion, and therefore the prize winner will be judged by skill, and not by chance (Medium Barrier = Medium Volume).
  • Behavioural Mechanics: These require the user to enter their details, redeem some type of coupon or voucher, then complete the action required of the promotion. An example would be a Digital Coupon where the user presents the coupon in-store to purchase a product, usually at a discount (High Barrier = Lower Volume).

 

Some Extra Tips on Choosing Promotion Mechanics

By now you should have a better understanding of what mechanics are, the different types, and how they can be used in your promotions depending on what your objective is. However please note this has just been an overview, there are many complexities to understanding how to choose mechanics, such as how to use different mechanics in the same promotion in order to drive maximum results.

 

We have discussed how a promotion with a low barrier to entry will receive more entries than a promotion with a high barrier (and vice versa). However, keep in mind that promotions with a higher barrier are trying to achieve a higher value objective (eg. sales).

 

Another thing to remember about when choosing mechanics is they are directly related to the incentive on offer. This is because your audience will enter your promotion based on their perceived value of it which is made up of both the:

  • Ease of entry (i.e. mechanic), and the…
  • Value of the prize (i.e. incentive).

Therefore a promotion with a high barrier can still be very successful when paired with a high-value incentive. In our next article will educate you on how to choose the right incentives in order to get the most from your promotion.

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The 6 Step Guide to Devising Your Promotion: PART 2

Welcome to our Part 2 of our ‘6 Step Guide to Devising Your Promotion’. In our previous article, we discussed the first three steps that included (1) campaign objectives, (2) campaign dates, and (3) incentives, now let’s get right into by discussing the next three steps. By the end of this article you will be well on your way to devising your own perfect promotion.

 

Step 4. Mechanics

The mechanic is the method that you will use to allow consumers to enter your promotion. There are dozens, if not hundreds of mechanics you could use. Some classic promotion mechanics that you may have seen both from online promotions as well as in-store include ‘Enter to Wins’ or ‘Instant Wins’.

 

When choosing what mechanic to select for your promotion make sure to choose one that aligns with the marketing objective you are trying to achieve, for example:

  • Database Growth Mechanics: The objective here is to get the user’s details such as name and email into your database. There is a broad range of mechanics that could work with this objective as most promotions require the consumer to enter their details, just make sure the incentive is motivating enough.
  • Brand Engagement Mechanics: One of the most popular ways to create brand engagement is on social media. Therefore mechanics such as a ‘#hashtag upload’ or an ‘image upload’ promotion are perfect for this. Peazie’s ‘canvas tool mechanics’ that allow for interactive promotions are great for this as well.
  • Sales Mechanics: When trying to push someone in-store a good type of mechanic to use is some type of ‘digital coupon’ mechanic. It should offer some type of free trial or discount and should be able to be tracked so you can assign attribution.

 

Step 5. Campaign Design and Creative

Once you have planned all the objectives and elements of your promotion it is now time to design it. When designing your promotion it’s imperative that you use a good graphic designer. Having great visual elements that are on par with your brand makes all the difference when grabbing the attention of the consumer.

          

While the campaign visuals are extremely important the magic is in the copy. Make sure your promotion clearly communicates the following to the consumer:

  • WIIFI – What’s In It For Me? (The Incentive)
  • Who is the brand giving this prize away (Your Company)
  • How to enter the promotion (The Mechanic)

The more clearly you communicate the above 3 points the higher your conversions will be.

 

Step 6. Promotion Traffic

Everybody has heard the saying ‘build it and they will come’. Well, that’s not true in the online world. Once you build your promotion, you must send traffic to it or else no one will know about it. There are many different options to chose from when deciding the best way to send traffic to your promotion, here are some of the most effective ways:                         

  • Social: Do you have a large social following on Facebook? How about Instagram? Spread the word through your social channels.
  • Paid Social: Social is great, but engagement can sometimes be low. However using paid social options, especially Facebook Advertising provides plenty of opportunities to advertise to a highly targeted audience.
  • EDM: Do you have an existing database or email list? Then emailing your existing contacts about your promotion is a great way to target interested consumers.
  • Influencer Marketing: The appears to be the new buzz word at the moment, however, it can produce great results (especially if you’re targeting a younger demographic). Getting an ‘influencer’ to spread the word with their followers to enter your promotion can result in huge traffic to your campaign (Keep in mind usually you might need to find a way to incentivise an influencer to do this for you).
  • Partnerships: This is one of our favourites here at Peazie. Find a partner company that has a similar demographic and do a joint promotion together. This enables you to share the costs and leverage each other’s audience.
  • Traditional: Depending on the budget you have you could benefit from using traditional forms of advertising such as radio and billboards. This works best if your promotion has mass appeal.

 

Final Notes

Well there you have it, the 6 steps to devise a successful promotion campaign. Implement these right and you will be well on your way to achieving your marketing objectives.

 

Of course there is a lot more that goes in devising a promotion, such as the legal and permits side. Also knowing how to select the right mechanic and incentive is a science in itself. That’s the whole reason why Peazie created a custom platform to run its promotions through. Apart from being able to dramatically increase the time it takes to implement a campaign, we now have a database of thousands of campaigns where every element of the promotion has been tracked. We built a tool to query the campaign data to inform us of what types of mechanics, incentives and other elements to use to design the perfect promotion no matter what the marketing objective and situation may be.

 

We hope you found the tips in this blog to be helpful. If you need help to create you own highly successful promotion make sure to get in touch.

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The 6 Step Guide to Devising Your Promotion: PART 1

If you have read any of Peazie’s latest blogs you would definitely be starting to understand the huge benefits of running promotion campaigns, and how they can be one of the most effective ways for any organisation to achieve their high-level marketing objectives. For all the converts out there who do understand the power of promotions but are just a little lost in how to get started this blog is dedicated to you. We present the 6 step guide to devising a successful promotion (Part 1).

 

Step 1. Campaign Objectives

A promotion, like any good marketing campaign, starts with understanding your objectives. What is your business trying to achieve from doing a promotion? Here are some typical marketing objectives to help you decide:

  • Database Acquisition: Building your ‘owned’ audience is one of the smartest and high leverage activities a company can do. It gives you access to a list of subscribers who you know are interested in your business as they voluntarily opted into receiving messages from you.
  • Brand Engagement: In today’s media landscape getting consumers to engage with your brand is harder than ever. If your brand engagement is at an all-time low the right promotion could re-ignite that emotional attachment you want your customers to have with your brand.
  • Online and Offline Sales: Sales is usually one of the most important objectives for any organisation because at the end of the day this is what drives profits. Promotions can be effective for both online and offline sales.

 

Step 2. Campaign Dates

Choosing a date for your promotion may seem obvious, however carefully planning when all the major milestones will be for each stage of the promotion is extremely important to setting clear timelines for you (and your team), as well as making sure the promotion runs smoothly.

 

Important dates to set in advance to create your timeline include:

  • Start Date
  • End Date
  • Prize Draw Dates

 

Depending on what your marketing objective is your promotion may need to coincide with a certain holiday period, special event, or maybe a product launch, therefore make sure to take this into consideration when planning your promotion timeline dates.

 

Step 3. Incentives (Prizes)

Without the right incentive consumers will not be motivated enough to enter your promotion. Remember it’s a value exchange between what you want (eg. an email address for your database) and what the consumer wants (e.g. a prize). Here are some considerations to keeping in mind when deciding your promotion incentives:

  • What is your major prize going to be? Every promotion needs a prize that is highly relevant and compelling to your target audience. The prize should also align to your overall brand offering. For example, if your audience is ‘youth-oriented music fans’ the perfect prize could be ‘2 tickets to an exclusive music festival’.
  • What are your minor prizes? Minor prizes aren’t something that everyone decides to add to their promotion, but most times it’s something they should be doing. Everyone loves a great major prize, but what else everyone loves is the feeling they have a high chance to win something. How do you achieve this? Supplement your major prize with multiple minor prizes, giving users a higher chance to win. Perfect prizes could include giveaways of your product or service.
  • Prize Distribution? This one goes back to campaign planning. Make sure you decide in advance how you are going to distribute your prizes (eg. Post, Email). Organising distribution in advance ensures happy consumers as everyone gets their prizes in a timely manner.

 

Well there you have it, Part 1 of our ‘6 Step Guide to Devising Your Promotion’. We look forward to seeing you next time next time where we will go through the final three steps.