Partnerships based on advanced sports analytics can lower costs and open up creative sales promotions opportunities around major sporting events, says Martin Bailey of Opia

Data analytics now dominate the coverage of sport, as broadcasters and journalists gain access to detailed performance statistics used by coaches and bookmakers.

The ever-growing sophistication of sports analytics conducted by powerful algorithms and machine-learning provides instantaneous breakdowns of almost every useful match or career detail, from passes completed, to their direction, length and recipients. Goal-scoring opportunities, yardage covered, cautions incurred on a wet Tuesday – all the data is there along with its analysis.

There are massive benefits for marketers, too: tapping into this data offers brands and agencies the opportunity to run bespoke sports-based promotional campaigns around specific events.

The biggest opportunity in the world

With the FIFA World Cup, the world’s biggest single-sport tournament, looming, retailers and manufacturers will use the unmatched pulling-power of football to boost sales promotions for everything from consumer electronics to cars, fuel and furniture, with cash-for-goals or cashback campaigns relating to wins by the UK home nations.

Sports marketing has been around for decades; but developments in technology and social media have revolutionised opportunities for creativity.

One example is the English Sports Council’s 2015 #ThisGirlCan campaign, which addressed health issues such as obesity after research showed that two million more men than women participated in sports in the UK. In this case, the use of sports analytics was backed up by showing positive, normal women as role models. The resulting video content was viewed and shared over eight million times. Two years later the hashtag is still going strong and women across the country have been inspired to be more active.

Real Madrid recently cemented its position as one of the biggest international football brands by launching its own Snapchat account. In just three months, the club gained almost half a million subscribers.

These sporting organisations used insights derived from data analysis to enable them to engage with fans effectively. They used analytics to segment their fans, estimate customer lifetime values (CLV), generate leads, predict retention of existing fans, and measure performance of marketing activities. All to great effect.

Big sports data is the difference

Until now, the approach used to calculate insurance rates involved in a sports cashback promotion has been based largely on assumptions, loss ratios and subjective form, with bookmaker odds often acting as a base point. This means rates have been historically impacted by cognitive bias (for example the expectation that England will do better than they are actually likely to do in the World Cup) and influenced by a herd mentality on how the rest of the market acts.

As more bets are placed on the home nations the cost to place the bet increases, simply because more bets have been placed. In reality, the underlying conditions have not changed.

Accurate sports data can remove this bias and ensure the most accurate promotional pricing.

Disrupting sport risk promotion market

More recently, we have seen new partnerships disrupt the status quo, for example between consultancies designing customer-grabbing, bold, creative sales promotions and incentives, and the companies supplying the data to the sport and betting industries. Sales promotion strategies are now crafted from these advanced data-sets, reflecting the reality on the pitch and not the sudden enthusiasms or group-think of the betting market.

Now, insurance underwriters can see that the consultancy has designed a sports risk promotion based on hard, detailed and thoroughly-analysed data from sports risk companies.

The significant advantage to retailers and manufacturers in all this is that premiums become lower. It means that far more companies can undertake the kind of creative promotions they have hitherto only considered as fantasy football items on a wish-list marketing plan.

Creativity and expertise in promotion-design

Promotions can be quirky and distinctive, but they need to be easily understood so that the ordinary consumer feels included. It would be too easy to use the wealth of big data analysis to come up with a promotion that appeals to a relatively narrow band of devoted fans.

A cashback offer that rewards a consumer buying a high-value washing machine for every goal scored by a high-profile team or player is more likely to hit the right demographic than one related to the number of bookings achieved by players with poor disciplinary records. This is an obvious example, but it is all too easy to get it wrong and end up with a costly flop or a promotion that over-achieves and leads to higher-than-expected levels of redemption and very high costs. This is where access to consultancies with the creativity and long experience of running such campaigns, is a pre-requisite.

Retailers and OEMs must launch their promotions now

In fact, the science of promotions has been operational for a decade, using predictive analytics and specialist underwriting guarantees to ensure that the promotion hits the back of the net without the retailer or manufacturer ending up out-of-pocket. Ordinarily, the downside of not being able to predict how many customers will take up the offer would be the risk of the promotion lingering on a firm’s balance sheet, as well as the potential financial risks if the promotion was more popular than anticipated.

Now, however, end-to-end management of risk-managed promotions with a sports hook has been taken to the next level of performance through the application of big data sports analytics. This heightened level of big data insight, combined with the creative expertise and flair of a risk-backed sales promotion consultancy is an unbeatable pairing. It will enable any retailer or manufacturer to stand out from the crowd and achieve far greater revenues than competitors when the World Cup comes round. The tournament is however, approaching fast and organisations need to grasp the opportunity now. It should be a great summer.

Martin Bailey is an Account Director with creative sales promotion consultancy Opia. Opia has recently partnered exclusively with sports risk experts Siepe Sports, who specialise in the provision of sports analytics data to the insurance industry, to enhance the assessment of risk levels in sports-related promotions.

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There’s been a lot of negative comment about the Winning Moments mechanic now being used in many prize promotions. But is the problem with the mechanic, or how promotions are being explained to consumers, asks Steve Berry of Emirat

Following some negative press about the overall odds of winning and the number of actual winners in some recent prize promotions, frozen food company McCain has become the latest brand to announce that they won’t be running any more Winning Moments-style prize promotions in the future.

The complaints about Winning Moments, and the strategic reaction by many promoters to them, lead many to ask if this reflects how all consumers feel. Is everyone losing faith in Winning Moments? I would argue not.

The average consumer would more than likely take a promotion in the spirit it was created – as a bit of fun. I am certain that McCain in no way set out to do anything other than inspire and delight their consumers with a fun and attractive promotion.

I don’t, in truth, know the facts – I didn’t work on this promotion – but I would guess McCain, working within a set budget, used fixed fee or promotional insurance to stretch that budget and provide the opportunity to win as many prizes as possible. Their intent ultimately would have been to make it more exciting, more appealing and to get a better response.

Compliance with the CAP Code

If this promotion was set up and implemented in accordance with the Committees of Advertising Practice (CAP) codes, the rules which govern all marketing activity in the UK, which I imagine it was, then all the prizes which the public were told could be won were in fact available to be won.

Therefore, the fact remains, had more people played, more prizes would have been won.

Let’s not forget, the whole idea of a promotion is as an enticement to purchase, the end goal being that you purchase the product, not enter a promotion. Furthermore, not all promotions guarantee a reward in exchange for this purchase, and they are not intended to. It’s a bonus, an add-on, a supplement to the product which is, most importantly, what you are actually buying!

The bag of chips cost no more than usual, therefore it hasn’t cost anything to enter this promotion. What then is there to feel disgruntled about? It’s not like buying a lottery ticket where you are actually paying to enter a competition. But again, with this too, you are only given a chance to win and no guarantees are given.

So why then, in the context of a promotion, which you are not paying to enter, does the idea that someone ‘could’ win seem to be an alienating concept all of a sudden?

I have read a lot of criticism and cries for promotional prizes to be ‘guaranteed’; but before promoters react, I would ask that they put this into context. While a promotion might guarantee prizes and therefore winners, it doesn’t dictate any differential in the ultimate appeal or number of participants that engage in a promotion. More winners, yes. More entries? Sadly, no.

Having a small number of guaranteed prizes can actually harm your promotion and objectives. This is due to the fact that the average consumer will perceive that, with only a few prizes to be won, they have very little chance of winning and so won’t bother to take part.

Worse still, they may not even buy the product, or in the frequency you are looking for, which is the whole reasoning for running the promotion in the first place!

The prizes are then only won by those that bother to take part, who perhaps aren’t the target audience that the promotion is aimed at.

I have seen for myself the same pool of participants winning prizes repeatedly during a promotion and in lots of cases, across a variety of promotions. These people are naturally the first to criticise a promotion with longer odds and no guaranteed winners because, frankly, they aren’t winning.

Your average consumer probably wouldn’t have the same view and it’s a shame for any brand to shy away from a Winning Moments promotion because of the view of a minority.

Winning Moments – indeed, all prize promotions with a ‘chance’ element – have their benefits. They allow for more inspiring and exciting promotions, which we all know have a far greater marketing impact, reach and ROI than your average free prize draw. They can help facilitate the creative, fun and fabulous promotions that we love to see on the shelves, by making them affordable and exciting at the same time. I don’t want to see promotional marketing like this disappear, especially when it really doesn’t have to.

In all fairness, though, there are perhaps two sides to this argument. You could argue that if you usually buy a different brand and made a buying choice solely based on the ‘chance’ to win something, do you deserve better odds? Maybe a guaranteed reward? I can certainly see the point to this argument.

Striking a happy medium

Perhaps, then, there has to be a balance with these things, a way to offer a fantastic promotion and keep the odds reasonable; by being just that.

Here, in my humble opinion, is how to go about striking that balance:

• Create a good ratio of packs to wins – 100m packs and a few prizes that ‘could’ be won isn’t a good ratio to go on. Decide what would be reasonable for your customers, what you’d expect to see as a consumer and go with that.
• Guarantee some of the prizes – put aside some of the budget to ensure you have winners.
• Use the other part of the budget to cover additional prizes and have ‘winning opportunities’. This will allow for the budget to go further and the promotion be as exciting as you’d like it to be!
• Mop Up – have a prize draw after the close of the promotion to compensate for late entries and entrants who’ve entered during the promotion and not won.
• Limit the number of winning individuals – so that the same people don’t get all the prizes and it’s fair for everyone.
• Don’t scrimp! The promotional website shouldn’t cost more than the promotional prizes! If it does, you probably need to look at it again.
• Be upfront. If you’re clear about the prizes and the odds, the choice for consumers is easy – buy and take part or don’t. It’s not about misleading anyone, ever!
• Choose your words carefully. Transparency is key; ‘’to be won’’ isn’t the same as ‘’could be won’’. Make sure you’re using language that can’t be misunderstood.

Steve Berry is managing director of fixed fee and promotional risk management company EMIRAT.

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Promotions are complex processes, and to get them right you must impose rigorous control on all elements of the activity, says Neil Barnes of Enable Promotional Marketing

All it takes is one promotion to go wrong to seriously damage a brand’s reputation – even today, there are UK consumers who remember the Hoover Free Flights fiasco from 1992.

Currently, Cadbury is feeling the pain on their “Hunt for the White Creme Egg” promotion that is being widely criticised, where consumers are urged to find a rare White Creme Egg to win. Sounds simple; however, it has been widely reported that consumers and retail staff have been spotted peeling back the foil wrapper, then putting the egg back. Some claim the white egg has different ingredients listed to the standard one, which could give the game away.

This isn’t anything like the scale of the Hoover disaster; but it is a major embarrassment for the brand, with the potential for the risk of product recall on tampering grounds.

Nobody compliments brands, agencies and all the other service providers who work on a brilliantly successful campaign; but all it takes is one poorly executed campaign to create a social media storm and damage the reputation of all of us who work in promotional marketing.

Consumers used to complain to the newspapers and television consumer TV programmes; not any more. Today, the customers drive the news agenda, sharing their complaints not just with their social network in the UK but around the world via Twitter, Facebook and other social platforms to highlight faults with a promotion.

The truth is, no well-run promotion should ever lead to the product being compromised or complaints that the activation is vulnerable to the unscrupulous.

To run successful promotions, the devil is in the detail; and that detail involves an integrated approach which incorporates compliance, security and logistic tasks with capability and knowledge in all areas of expertise from initial print and production, supply chain, legal and on into areas such as digital.

At Enable, we’ve developed a process which we call Operational Management – other people will call it something else, but what you call it doesn’t matter, so long as you include it in your promotions.

Promotions are complex and involve many different tasks; to manage them properly you must start with an expert team that sees and understands the complete picture. A promotion must be planned in its entirety, not piecemeal. You can’t just take a few services and cobble them together.

If things go wrong, it usually stems from a lack of understanding of the complexities of the subject and of the rigorous management controls and monitoring necessary to achieve a successful implementation.

Work out what should happen in any promotion, and then look at everything that could go wrong. Explore even scenarios which are highly unlikely – it’s only by being prepared for the worst, not hoping for the best, that we can ensure a smooth path to success.

All stakeholders should be involved in the planning from as early as possible. Partnership and collaborative working are vital to success. This is even more important when a promotion is being delivered or supported via a variety of media channels and technical disciplines, when a promotion is being run with different retail partners (particularly if some of them have tailored versions of the promotion) and when a promotion is being run in more than one country.

You must bring in experts on compliance, security and logistics to work alongside the marketing and creative teams. In an ideal world, everyone working on a promotion should be a member of the Institute of Promotional Marketing and fully up to speed on promotional best practice.

The total collaboration of Operational Management and creative should ensure that attention to detail combined with the creative artistry works cohesively for the perfect promotion. Without these two in partnership, no matter how beautiful something looks, or how clever it is, if it doesn’t work or if it backfires, the creativity will be overlooked by disappointed customers.

We’ve helped run promotions where some of the ingredients were changed to indicate a winning pack. We engaged packaging and specialist legal experts and involved them from the start, providing a solution where you simply just change the wording on all promotional packs to include the details for the special ingredient as well as for the normal product.

Thankfully, many brands are becoming more aware of the risk to their reputations from poorly-executed promotions, and are seeking support from operational experts in order to protect the integrity of the promotion or the product.

However, for every brand that understands the need for the highest levels of operational control, there are still far too many that ask what they need this level of attention to detail for. Often, it’s only when a catastrophic failure is detected and prevented by following the right operational procedures that these clients understand the harsh realities of the marketing world today.

The goal should be to ensure that every promotion is enjoyed fairly and honestly by consumers, while protecting brands from the detrimental harm of ‘operational blunders’ and inexperienced or unconsidered implementation of a project.

Whether you are the marketing director, the brand manager, or work for the creative agency or a service provider, your goal should always be the same: to protect and safeguard the reputation of the promotion, the brand, the company, and the marketing industry.

The reputational and financial risk of a poorly executed promotion can be enormous. In some cases, in the past these have made a brand toxic and devalued it in the eyes of consumers.

It is only by meticulous planning, attention to detail and asking the question “what if?” when you consider every single stage that you will end with a promotion that works for all.

Neil Barnes founded Enable in 1993, and the company is celebrating its 25^th anniversary in 2018. Enable is acknowledged in the industry as expert in ensuring promotional marketing campaigns meet best practice, are legal and compliant with UK marketing codes, free from fraud or theft and are logistically sound.

Enable works with FMCG companies, suppliers, digital solutions agencies, printers, insurance companies, and creative promotional marketing agencies alike, assisting in the smooth running of their promotional marketing campaigns and helping implement protective measures against fraudulent entry or other activity which could damage the integrity of a promotion.

Enable is a member of the IPM, and is an IPM Education and Training ‘Module Hero’, supporting the IPM Diploma in Promotional Marketing.

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Fixed-fee company Mando has launched a new partnerships agency, Mando-Connect, which uses a data-fuelled approach to leverage a range of different data-sets to develop partnerships based on science.

Mando is part of global marketing services group WPP, and Sir Martin Sorrell, WPP’s Chief Executive, says: “Mando-Connect makes smart use of over 40 years’ hard-won knowledge of people’s response to promotions. Their clients should love it”.

Mando-Connect will design partnerships and rewards based on the smart use of cutting-edge data and insight. Its custom-built Partnership Engine leverages three extensive data sets, including WPP and YouGov data, Mando’s own ProNet database, covering 20 data points from over 3,000 promotions, and the Connect PartnerBank, which covers 2,000 audited brand partners.

Mando-Connect will specialise in partnerships for customer acquisition and awareness, loyalty, promotions and brand perception shift.

It is already working with Merlin Entertainments, MoveGB, Readly and breast cancer awareness charity Coppafeel!.

Charlie Hills, Managing Director of Mando-Connect and also its Head of Strategy, says that smart use of data can create more impactful partnerships, with higher ROI for clients. She observes: “Our unique data-fuelled insights enable us to know which partnerships will meet our client’s expectations, and which will exceed them. Did you know, for example, that by including an element of personalisation in your approach, a brand can see up to seven times more impact from a promotional partnership?”

The Mando-Connect senior leadership team includes Becky Munday (Mando CEO and former Chairman of UK marketing industry trade body, the IPM), Charlie Hills and Jo Ashdown, Head of Partnerships. The three bring decades of experience in partnerships across sectors including media, leisure, sport, travel, telecommunications, financial services, restaurants, FMCG and retail.

Becky Munday is excited to make the step-change: “Mando’s unique promotional and rewards data is the fuel that will enable us at Mando-Connect to propel partnerships to the next level. By working together and leveraging our unique data, brands can achieve far more together than they can alone, creating purposeful and cost-effective relationships.”

The picture show (left to right) Jo Ashdown, Becky Munday and Charlie Hills.

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No matter what new technological invention or innovation in promotion you choose, the challenge of standing out in a crowded marketplace remains, says Chris Baldwin of Sodexo. PROMOTIONAL FEATURE

Brands risk devaluing their campaign products by discounting too frequently, and with tight margins to meet it just isn’t economical.

This is where adding value is key. Marketers would be better not lopping pennies off in store for a meagre splash but instead adding value or being creative with ‘discount’ for a big eye catching impact.

Adding value is the easy bit – promotions, prizes, trade-ins and guarantees can help brands stand out for all the right reasons. But with so many different promotional mechanics, how do marketers choose which is best for their campaign?

Looking at what they want to achieve is a pretty good start…

Promoting value

Snipping coupons is old school, right? Wrong! This mechanic’s popularity shows no sign of dwindling. The use of money-off coupons is as popular as ever. Even truly old school methods like cutting out vouchers in newspapers still draws a crowd.

Sodexo, part of the Sodexo family, worked with John Smith’s to create a coupon in the Mirror that saw readers receiving £1 off their next purchase. Creating a robust alignment between The Mirror and the brewery – and putting savings in consumers’ hands. With Sodexo covering all the possible redemptions, remaining financing liable and providing campaign analysis, John Smith’s were able to reach an offline audience and inspire a purchase.

Another ‘discount’ mechanic on the block, cashback, has the potential to increase sell out while enabling marketers to reduce the profit sacrificed by a true, flat discount. By highlighting the ‘discount’ (savings made once cashback is paid) rather than the reduced price, marketers can create a greater sense of urgency and give consumers a reason to ‘buy now’.

Plus, cashback allows marketers to sell a product at full price, increasing basket spend for the retailer, while knowing that, once the offer has finished, they’re not left with the damaging effects of price erosion.

Instant gratification

Before AR, VR, QR and the rest, scratch cards were literally the most interactive way to promotionally market to consumers en masse. Odds on scratch cards tend to be greater than in other mechanics, and the compulsion of finding out if you’re an instant winner is hard to shake.

An instant win promotion requires a relatively large prize pool which can put agencies and manufacturers off. But instant wins need not blow the budget – with the right risk management in place, marketers really can afford to reward everyone and reap all the excitement in their follow up collateral.

Gift with purchase is a great example of instant gratification. From the high tech to the cuddly, a gift with purchase rewards impulse buys as well as repeat customers. We can enlist the help of risk management agencies to help calculate levels of participation, expected reward claims and cover the promotion with a fixed-fee to protect their budget.

Inspiring confidence

Marketers that are looking to develop consumer trust through their offering need to drive forward campaigns that inspire confidence and conviction in their products and services. And there are a number of different mechanics that help build relationships in this way.

Whether inspiring consumers to switch brands or try a product for the first time, Try Me Free promotions are a great idea to help encourage confidence in potential customers and inspire repeat purchase and new-found loyalty. Brands look like they are so sure of their product that they will give it away for free, knowing that consumers won’t be able to resist a repeat purchase. And with the help of some agency expertise, brands can work work out how many product samples are likely to be claimed so they don’t spend a penny over budget.

Another confidence-inspiring mechanic with consumers is the product guarantee. How much more can a brand do to prove it has 100% faith in its product than literally give dissatisfied consumer their money back? The problem is, product guarantees can strike fear into brands who worry that a flood of claims will see them hit financial ruin. But it doesn’t have to be that way. By understanding the risk, and calculating the likely number of claims a balanced budget can be achieved.

Buy and Try de-risks the purchase process for consumers – often related to high value purchases. It removes purchase barriers for nervous or thrifty customers, as they can buy what they really want, safe in the knowledge that they have up to 90 days to return it, no questions asked!

Building anticipation

The Advertising Standards Authority describes prize draws as when ‘Prizes are only awarded to those who return the winning code or symbol to the promoter within the promotional period.’

By running a prize draw campaign, marketers can build anticipation – and brand awareness – by offering amazing prizes (think cars, holidays, one of a kind experiences) but limit the opportunity to win and avoid any substantial risk. The most important thing is offering something spectacular that’s worth entering for – and being clear in the terms and conditions.

Driving loyalty

When customers feel like they get something extra from a brand they will bring their custom back time and time again – why would they look elsewhere for less? Marketers can reap the benefits of loyal consumers by rewarding a purchase with points or offers that they can’t get anywhere else. Points and offers which drive consumers back to spend again, attracted by the idea that they’re getting something for nothing thanks to a previous purchase.

Collector schemes are another great way for brands to drive loyalty. Sales are increased as shoppers collect tokens etc. and the customer is enticed to buy more and more in order to fulfill the gift or prize requirement.  Again, a smart promotional agency can protect brands’ budgets – and ensure all consumers get the rewards they’ve been promised.

Removing barriers to purchase

In a crowded marketplace where prices fluctuate and competition is fierce, consumers hold onto their purchases for longer than ever before. No matter how loyal a consumer is to a brand, once they have a household product (for example), they just don’t need to get another similar version.

So, how do marketers get consumers interested in upgrading to the latest and greatest models when they already have the old one in full working order stacked up in their broom cupboard?  This is where trade ins come in – by offering the customer something tangible for their old product, marketers are removing the barriers to purchase.

In our latest Case Study we explore how popular cleaning brand Kärcher ran a trade in campaign to encourage existing customers to upgrade to their latest model. The July 2016 promotion was focused on current window vac owners and offered them a cash incentive to move on to a better machine – if they bought the new Kärcher WV5, with an RRP of £89.99, and traded in their old machine they could receive up to £30 in cashback.

The campaign involved a number of different parties to ensure a seamless delivery to the consumer, from the receipt validation to the cashback payment Sodexo sourced and handled every element meticulously. Sodexo also built the microsite which looked to consumers as simply an extension of the Kärcher website – the site housed the claim area, all the promotion information including contact details, where and what to buy, how to claim and the FAQs. With hundreds of stores involved and a relatively complex offer to make simple, the campaign had the potential to be challenging but was pulled off expertly and with plenty of lessons learned.

Clearly, campaign mechanics aren’t ‘one size fits all’ and each, however old or new, serves a purpose in today’s busy marketplace. The challenge for marketers is choosing the right one for their needs, measuring its success and being reflective as the embark on the next one.

Chris Baldwin is Director of Consumer Promotions and Loyalty at Sodexo. 

Sodexo has published a new eBook,  How new technology is driving the promotional marketing industry, taking a closer look at the digital revolution and how it can help marketers influence shoppers. For a free copy, click here.

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