Marketing distribution specialist mda has been acquired by European logistics business Staci for an undisclosed sum. Staci says the acquisition creates the first pan-European marketing logistics business for brands and retailers.

Creating, storing, distributing and activating point of sale and marketing materials for the world’s biggest brands including Heineken, Coca-Cola, Mars, Unilever, Diageo and Mercedes-Benz, mda, which recently celebrated 30 years of business, becomes part of a £250m Europe-wide fulfilment group with operations across France, Spain, Germany, Italy, Poland, BeNeLux and now the UK.

Wayne Chapman, mda Managing Director, says: “This is genuinely fantastic news for our clients and teams and we’re extremely excited about the years ahead. We’ve operated from the UK for 30 years, but in the last 24 months we’ve seen clients’ desire to operate facilities in multiple European territories under a single contract significantly increase.”

Mda, which currently has turnover of £5m a year, has 350 employees at five fulfilment centres across the UK.

Staci is the European leader in the B2B retail logistics segment for a large group of networks: retail, GMS and GSS, oil companies, agribusiness, hotel and restaurant chains, banks, insurance companies, operators telephone companies, car manufacturers, the pharmaceutical and cosmetics industry and the public sector.

Prior to the mda acquisition, Staci had 35 sites in Germany, Belgium, Spain, France, Italy and the Netherlands with a workforce of 1,550 employees.

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Andrew Rae of incentives, rewards and prize management company The Black Tomato Agency argues for the value of rolling out the red carpet to attract and retain key customers.

There are relatively few great mysteries left unsolved in the world today. We know how the pyramids were built, we’re pretty sure that the Loch Ness Monster doesn’t want to be found and we are certain that the retention of clients is paramount to business success.

Nowhere is this more apparent than in the FMCG sector, where the sheer volume of available options means that brands have to do their utmost to achieve two crucially important goals: the first is to immediately, at the point of purchase, distinguish themselves from their competitors. The second is to do what you can, at all costs, to foster brand loyalty. Account teams across the land are constantly set the challenge of turning a consumer into a fan.

In the incentive and rewards industry, we are regularly asked the same two questions: “what can we do to retain our customers?” and “how can we stand out from the crowd?”

The second question is relatively simple for us to answer; the former is more of a complex beast. Does brand loyalty still play a part in your customer’s purchasing decision? Are customers too cynical and time-poor to be swayed by incentives?

Reward to Retain

The conventional offers or rewards that are given to new customers are in general fairly similar and, dare we say it, not particularly engaging. The desire to keep on directing the customer back to the product with a voucher or money-off coupon is almost too alluring to move away from.  And in the right space, it is the perfect incentive.

But the question remains, if everyone is employing the same tactic, are you offering your customer the right incentive to choose and stay with you?

If you are confident that your product is the best around (which I’m sure you are, and I agree!), then make sure that confidence comes through in the sales funnel and reward the loyal with unique and remarkable experiences instead.

The sheer fact that your product offers the chance to win a tailored and unique experience is enough to automatically give you shelf appeal and set you apart from the crowd.

We recently handled prize creation and prize management for a client who was launching a product with a ‘Fire and Ice’ theme and wanted to create an experience intrinsically linked to the campaign messaging.

The objectives were, firstly, to set them apart from the crowd and, secondly, to reward their existing, loyal customers.

We created an experience where the winner was flown to Iceland to stay in the ION Adventure Hotel, and rode in a private helicopter over a live volcano before transferring by Super Jeep to another (dormant this time) volcano where a bespoke private dinner was laid out – within the magma chamber…

The effect was immediate and the impact tangible. By engaging with their customers in such a unique and remarkable way, their loyalty was rewarded and their custom retained.

However, sometimes the old methods are just as important – which is why we took the step of leaving a hamper of branded goodies in the guests’ room as a welcome gift. With a personal message included, it reaffirmed the brand message and reminded them of why they were there in a unique, personal and engaging way.

This method of rewarding or engaging customers by offering the chance to win experiences can be seen in a variety of different industries, not just FMCG.

Take Harley Davidson for example; they are currently offering potential customers the chance to win ‘The Tour of a Lifetime’ if they take a test drive. Now, more than ever, brands are seeing the benefit of experiences as incentives for customer acquisition and retention.

Creating a VIP Community

Moving on from the world of rewarding the individual, there is an increasing interest in the value of VIP community events and the opportunity for an elite few to share an experience with others in a similarly prestigious position.

In the same way that a private members club creates a sense of intrigue that sparks interest in those on the outside and pride from those within, a private VIP member’s community in the FMCG market can have an incredible impact on loyalty.

Many luxury brands have already taken this approach to rewarding VIP customers including Bentley, Rolls Royce and Johnnie Walker. They are increasingly using group experiences rather than more traditional gifting initiatives.

An event offers a brand an incredible opportunity to amplify its values and core message through creative and well-curated experiences helping the members identify with the lifestyle association of the brand.  What’s more, a reward that is shared by a community brings into play a unique dynamic that focuses on the human need to share experiences with others and a sense of pride in being recognised as one of an elite group by their peers.

Through effective pre- and post-event, as well as on-site, communications, the value of any event can have far wider reach and offers an incredible opportunity to create a legacy and drive significant longevity for each experience, thereby maximising Return on Investment.

Collateral such as images, videos and sound bites from these events can be repurposed to give those aspiring to be in the VIP club a glimpse into this exclusive world (and thereby encourage them to work towards this).

The combined budget of a group event can allow for otherwise unachievable experiences to be accessed and created.  The buying power of pooled reward budgets can often enable a group to negotiate the very best deals and open doors otherwise closed to the general public.

For a VIP group event, the challenge is always to create a ‘money-can’t-buy’ experience that is quite literally a ‘once-in-a-lifetime’ opportunity.  In recent years, we have organised everything from a complete buyout of Richard Branson’s Necker Island for a VIP group to camping in Alaska in search of bears and a supercar rally through the UAE.

So whether you are looking for a prize promotion to influence the purchasing decision at the point of sale, or thinking of engaging with a community of loyal brand advocates, always think of how you can Reward to Retain.

Andrew Rae is Head of Promotional Marketing at The Black Tomato Agency, which designs and manages award-winning experiences that engage with customers.

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All the companies which supply essential elements to translate great creative ideas into brilliant promotional marketing campaigns need to get their entries in for the IPM COGS Awards 2017 – the entry deadline is just three weeks away, at 23:59pm on Thursday, July 13 2017.

The Institute of Promotional Marketing (IPM) launched The COGS Awards seven years ago as a recognition programme for service partners to run alongside the IPM Awards, which are for the creative element of promotional campaigns.

Entry is open to any company from a range of business sectors which support great promotional marketing campaigns – handling, risk, print, staffing, digital, event and risk management to name but some.

Companies do not have to be IPM members to enter (although members pay lower costs) and the Institute – the marketing industry trade body which represents the interests of brands and organisations which use promotional techniques and the agencies and service providers which advise them — is encouraging members and non-members alike to seize the opportunity to show the world how their contributions have helped create world-class campaigns.

Now in its seventh year, The IPM COGS awards programme is constantly setting benchmarks and driving up the standard or promotional campaigns.

Examples of last year’s award-winning work can be found on the IPM website.

The full list of categories for The COGS Awards 2016 is below:

• Coupons
• Print Management
• Risk Management
• Digital
• Promotional Merchandise
• Experiential and Event
• Handling and Fulfilment
• Staffing
• Direct Marketing
• Loyalty
• Prize, Incentive and Reward
• PR and Marketing Communications
• Partnership and Sponsorship
• Innovation
• Multi Territory
• The IPM COGS Awards Company of the Year.

Information on the criteria for each category is on the IPM website https://www.theipm.org.uk/awards/COGS-Awards/The-IPM-COGS-Awards-2017-Categories.aspx as are details of how to enter, timings and costs.

You have to be logged in to the IPM site to view details of how to enter, but registration is free.

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Promotional risk management consultancy Umbrella has appointed Nicola Christie as its new Client Services Director.

Christie joins Umbrella from McCormick, the global leader in herbs and spices, where she worked across Brand Management, Category Management and Shopper Marketing for Schwartz.

Beth Johnson, Umbrella’s Founder, says: “Nicola’s skills and experience make her a perfect fit for Umbrella. Not only will she have first-hand experience of the hurdles our clients face, but her marketing expertise will really help steer their promotional campaigns in the right direction.”

Johnson adds: “Data analytics is a crucial part of our business and Nicola will really be able to add value in this area too, along with her understanding of the grocery environment, having worked with Tesco, Asda, Morrison’s, Sainsbury’s, Waitrose and other retailers such as Toys’R’Us.”

Christie comments: “It’s great working across such varied briefs and brands. Umbrella, as a consultancy, are all about challenging the brief, so I’m pleased to be involved in a continuous flow of brainstorm sessions and creative proposals.”

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For brands and services that sell through third-party channels, creating a strong and effective incentive program delivers real benefits, says Adam Whatling of incentive and loyalty experts Love2shop Business Services

Building a strong third party sales channel is essential to success in certain industries, including the telecoms, technology and automotive sectors. It is vital to ensure your product or service stands out from the crowd; but that is easier said than done when channel salespeople are bombarded with a variety of rewards and bonuses. In this highly competitive environment, aligning third party salespeople with your brand to promote your solution over those of your rivals is a challenge.

It is essential to first consider carefully the persona of individual, or groups of, salespeople. A person selling mobile phones in a retail store environment is likely to respond to different incentives to sell one product over another than a sales person who is part of an expert consultative team delivering IT services to other businesses.

Also don’t forget that salespeople in different industries may be able to help your brand in different ways. So, for example, salespeople in automotive dealerships are in a position to cross sell add-ons from service plans to finance packages. Incentivising these staff regularly and effectively to make appropriate add-on sales makes all the difference to the bottom line and transforms consumers into brand advocates.

Sales staff in the channel such as mobile phone shops or car dealerships expect rewards and recognition as part of their remuneration.  Depending on the type of business, they may be participating in a number of different incentive schemes and accessing more than one online rewards and recognition portal, typically building up points with a number of suppliers to redeem for rewards later on.

There are a number of techniques vendors can use to make sure that sales staff are accessing your incentives portal that will not only drive sales but also support desired behaviours. These might include cross-selling appropriate products and delivering levels of customer service that build loyalty, rather than making one-off sales or, in a worst-case scenario, mis-selling financial products.

Here are six top tips to improve the effectiveness of channel incentives:

• Segment channel sales staff just as you would the end user customer base. That way, it is possible to design rewards and recognition that meet the specific interests and motivations of individuals or groups of employees. Less experienced marketers commonly fall into the trap of focusing purely on the top performing sales people. In fact, incentivising middle tier sales staff to improve their performance delivers the greatest benefits. It is worth further segmenting the middle tier of sales staff – people at the top end might just be able to aspire to the performance and top rewards of the highest selling salespeople. Employees at the bottom end, and underperformers, need to see lower value rewards that they can aspire to and achieve if they are to improve. Highflyers who are hitting targets halfway through the year need a reason to continue to perform well – be ready to offer add-ons to the main incentive, such as a room upgrade within a holiday reward.
• Send regular tailored communications. Personalised push notifications are key to drive salespeople to your incentives portal. For example, let people know that this week they have earned 90 points and if they just manage to win 10 more there will be a reward for them on the portal.
• Make good use of management information. Gather actionable data – and act on it. Set KPIs and check regularly that they are being met. Are sales staff opening your emails or responding to your texts? Are staff in one dealership or region of the country less engaged with your programme than others? Offering frequent lower value tactical rewards to drive performance in response to this data can supplement more generous annual rewards.
• Don’t undervalue the motivational impact of kudos. The most effective rewards are not always the most expensive. In one dealership, top sales staff responded well to the incentive of not only a fancy holiday but also the kudos of sharing it with top management.
• Add bells and whistles. Set your online rewards and recognition portal apart from the competition with engaging add-ons. Consider encouraging sales staff to visit the portal to undertake rapid and relevant training modules or simple quizzes on your USPs – in return for points or rewards, of course. Gamify rewards and recognition, tapping into the ‘local ladder effect’ – the human desire to increase social standing relative to others – in a way that creates healthy competition between sales staff.
• Don’t rely on online alone – press the flesh. Supplement your online portal with regular face-to-face contact. This might include going out on roadshows to demonstrate products in depth to sales staff and being there in person for product launches. Follow-up on these face-to-face meetings with communications that drive sales staff once again to the online portal.

Engaging customer-facing sales teams that are bombarded with promotions is vital. At the same time, channel marketing goals need to be closely aligned with consumer marketing by rewarding channel staff for the sales behaviours that reflect the values the organisation promotes to consumers. Tailored and frequent rewards and recognition are key to transforming channel sales people into knowledgeable ambassadors for your product and service.

Adam Whatling is Head of Engagement and Development at Love2shop Business Services, the corporate division of Park Group plc, which delivers customer and employee engagement boosting programmes that utilise enticing rewards in recognition of consumer actions and workforce achievements. For further information visit https://www.love2shopbusiness.co.uk/customer/channel-incentives

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As part of the Smarter Working Initiative, leading conference call provider Powwownow has launched a social media campaign challenging people to take selfies of themselves working flexibly and post them on Instagram and Twitter using the campaign hashtag #Flexie – short for flexible working selfie.

The campaign, which will launch on 18^th July, encourages workers around the country working to show themselves working in a way or location that suits them best. The company says locations could be anything from the beach to the bedroom, so long as the photos capture individuals getting their work done.

The #Flexie campaign will run for two weeks until August 1^st 2016 with the #Flexie posts that best epitomise flexible working giving their creators the chance to win one of 10 flexible working mystery boxes.

The Smarter Working Initiative sees British businesses unite to showcase flexible working in the UK and how it benefits both the businesses and staff alike. Businesses involved include RED Driving School, Purplebricks.com and luxury fashion retailer Orlebar Brown. Other companies are being invited to sign up to test flexible working – which will be celebrated with its own day on July 25^th, 2016, the first official day of holidays for schools in the UK – at www.smarterworkinginitiative.com

Simon Prince, Marketing Director at Powwownow, says: “We’re encouraging workers that are lucky enough to be offered flexibility in their job to post pictures of how and where they work best. All individuals have different ideal working conditions whether this be in a silent room with no one else around or outside drawing inspiration from nature and their surroundings and we hope these images will capture that and prove that work can get done outside of the office and away from the desk.”

More information about Powwownow’s #Flexie competition can be found here.

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