Opinion from Andrew Ryan, Director at Halo

When John Pemberton invented Coca-Cola in 1886, not even their catchy positioning of “Delicious! Refreshing! Exhilarating! Invigorating!” could persuade consumers to try it over all the other carbonated wonder tonics and elixirs already on the market.

So, to help increase sales his bookkeeper started giving away tickets for free tastes of Coke, but Pemberton chastised him for extravagance. Fast forward a few years when tycoon Asa Griggs Candler bought the company in 1888, he revisited the bookkeeper’s idea, and distributed thousands of bits of paper like the ones above, and so the coupon as we know it was born.

By 1913, Coca-Cola had redeemed over 8.5 million free drink coupons.

Thankfully the humble coupon itself has made a smooth transition to the 21st century and the new dawn of digital coupons will soon be the norm. If you want to boost your sales and attract more consumers, couponing is still a solid marketing tool to use. Coupons can help you create a sense of urgency, reward loyal consumers and increase brand awareness.

This is especially true in the cost-of-living crisis when consumers are even more value conscious. The tightening of consumer purse strings is placing an even greater demand on the need to deliver value where it matters. This is being born out from our findings across the UK, Europe, Africa and the US that there is a noticeable increase in response and uptake on any promotion that delivers real consumer value. Free and Save messages are currently outperforming all other mechanics.

However, unknown performance can place greater demands on budgets which is where Fixed Fee comes in to provide much needed cost certainty. Fixed Fee is perfect for when costs are variable and the final outcome is unknown. It allows a campaign to be budgeted for regardless of the final performance, protecting the variable costs under a one off completely covered​ Fixed Fee with the backing of re-insurance.

By combining the powerful mechanic of couponing with the cost certainty benefits of Fixed Fee, brands can better navigate these tough trading conditions.​

Why coupons?

1. Couponing creates a sense of urgency. When consumers see that a coupon has an expiration date, they are more likely to act fast and make a purchase before they miss out on a good deal.
2. Couponing appeals to the masses, everyone loves saving money, and couponing allows consumers to feel like they are getting more value for their money.
3. Couponing encourages repeat purchases. By offering coupons that can be redeemed on future purchases, you can increase consumer retention and loyalty. You can also use coupons to cross-sell or upsell other products or services that complement your main offer.
4. Couponing generates word-of-mouth. Social sharing. When consumers are happy with purchases, they’re more likely to share their positive experiences with friends and family. You can also incentivize referrals by offering coupons to both the referrer and the referee.

  Quick couponing checklist                                         

• Set clear goals and objectives for your coupon campaign. What do you want to achieve? Who do you want to target? How will you measure your success?
• Choose the right type of coupon for your offer. There are different types of coupons, such as percentage off, £1 off, buy one get one free, free delivery. Choose the one that best suits your product or service and your target audience.

Tracking, ROI and first party data

• Analyse and optimise your coupon campaign. You can monitor and evaluate the results of your coupon campaign regularly. You can use metrics such as redemption rate, conversion rate, average order value, consumer acquisition cost, consumer lifetime value. You can also collect feedback from your consumers to improve your offer and consumer experience.
• Coupons can help you collect valuable consumer data and feedback. You can use coupons to ask consumers for their email addresses, phone numbers, or opinions. This can help you build your consumer database and improve your marketing strategies.

The humble coupon might not get the recognition it deserves, especially at awards events, but you clients will thank you for the direct impact it can have on driving trade.

Couponing is certainly not broken, far from it, but they might need fixing in which case we’d be delighted to help.

The post Isn’t It Time We Fixed Couponing? appeared first on IPM Bitesize.

The promotion agency Umbrella briefed B Corp prize provider The Happy Prize Company to deliver an experience for the online car seller, cinch.  Cinch are official sponsors of the NFL UK and as part of the partnership they provided two lucky winners with a once-in-a-lifetime opportunity to watch Super Bowl LVI in LA!!  

The Happy Prize Company put together a carbon-neutral prize consisting of two luxury 4-night breaks to LA, including a meet and greet on arrival (which included Cinch’s filming company, responsible for capturing the prize winner’s experiences), 4 nights at the Amarano hotel in Burbank, a day out with the film crew exploring the best that LA has to offer, along with VIP tickets to the Super Bowl, including tickets to the exclusive Tailgate party, provided by cinch. One winner described the trip ‘Such a huge thing to do – a proper bucket-list experience’,  and the campaign aligned strongly to cinch’s ethos which is to deliver on what they promise. 

The core of cinch’s business is customer service and every part of the prize had to encapsulate this ethos; every detail had to ‘be a cinch’ and here is the experience we helped deliver! Watch Video

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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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Hyperion Adjusters, which provides specialist promotional marketing insurance and risk management products for brands and agencies, has sold a majority interest in its business to leading specialised loss adjuster, QuestGates.  The two businesses will be integrated but Hyperion will continue to trade as Hyperion Adjusters and the current management team and staff will all be retained.

The investment comes as Hyperion Adjusters beefs up its specialist promotional marketing offering with the recruitment of new staff and the launch of a redesigned website (www.hyperionadjusters.com), which highlights the company’s in-depth knowledge and experience in the field of promotional risk management, the handling of over-redemption insurance claims and the provision of judging and adjudication services.

Andrew Pinnion, Co-Founder and Director of Hyperion, says: “With new technology adding to the complexity of the promotional landscape, and with consumers who have become far more savvy about promotions of all kinds, brands and agencies must be ultra-careful when they run promotions.”

Hyperion Adjusters is a member of the Institute of Promotional Marketing and has been working with most of the major promotional risk management companies for the past 10 years.

Among the services it provides are:

• Promotion and insurance policy analysis.
• Pre-risk assessment which includes identification of the controlling elements and ensuring that satisfactory and adequate processes and procedures are implemented and adhered to.
• Audit and assessment of service providers, including web design agencies, handling houses and recyclers.
• Promotional website functionality and analysis.
• Systems, data encryption solutions and processes for the secure receipt, verification and storage of confidential data.
• Statistical analysis of large volumes of data.
• Security marking.
• Loss quantification.

In addition to the services it offers promotional marketers, Hyperion also advises on issues including handling production losses for Film, Television and Music Video together with contingency and non-appearance claims, lottery and gaming mechanics, systems, processes and security, verification of jackpots and winners and detailed analysis and supervision of televised quiz/game shows.

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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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Opia, the international risk-managed sales promotions consultancy, has appointed Darryl Postelnick, former Microsoft Vice President of US Retail Sales as Sales Director for the North American market.

Postelnick has been recruited by Opia after a 15-year career at Microsoft, which he joined after eight years as Director of Sales at Disney’s Buena Vista Home Entertainment division.

At Microsoft, Postelnick was given the brief to assemble the team that would successfully launch the Xbox console, functioning as Director of Sales within the Xbox division for two years before moving into general management of all Microsoft consumer goods over a 10-year period. Most recently, Postelnick functioned as Vice President of US Retail Sales, managing a team of 80 employees and a $6 billion budget.

As Opia’s Sales Director, North America, Postelnick will bolster the fixed fee and risk management expert’s position in the US markets, leading sales efforts and scaling business through partner relationships, as well as identifying and developing key verticals to aid Opia’s growth in the US.

“Retailers are so used to running the same promotions all the time. Opia’s promotions are creative and accomplish the priorities of their partners,” Postelnick said. “Opia has the unique ability to address each client’s priorities in a way that is exciting and from outside the box.”

He added: “I think that Opia will become a turnkey solution in the electronic retailers’ toolkit. Opia provides solutions that solve the problems for a lot reputable global electronics brands, especially when it comes to addressing the refresh cycle. Being able to provide great sales promotions to give people the incentives to upgrade earlier is what attracted me to the company.”

Opia Managing Director Andrew Marwick observed: “Darryl is a proven industry leader who brings with him a wealth of experience and expertise that will prove instrumental in expanding our operations in the US. We’ve already collaborated with Darryl on a consultancy level and now we’re delighted to welcome him on board to head up our sales strategy in this incredible market. This is another great milestone for Opia.”

Opia is an industry expert in risk managed sales promotions, with a proven track record in results-driven business and consumer campaigns for brand owners in the hi-tech, telecoms, FMCG, retail and automotive sectors.

Supported by a 24/7 customer service team fluent in 18 languages, Opia’s global reach enables it to offer multilingual redemption campaigns in over 60 countries, including EMEA, North and South America and Asia-Pacific.

Opia was acquired by Australian media and entertainment company Village Roadshow Ltd (VRL) in December 2015. VRL bought 80% of the business for approximately £24 million. Opia Managing Director Andrew Marwick and Sales Director Steve Gales retained a 20% holding in the company and continue to run the business on a day-to-day basis. Opia became part of Village Roadshow’s Digital Division, together with Edge Loyalty Systems Pty Ltd, which VRL acquired in 2012.

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Price cuts are short term responses which can damage brand values, says Chris Baldwin of Sodexo. Instead, brands should build value with intelligent promotional activities. PROMOTIONAL FEATURE

With a fluctuating pound and ongoing political uncertainty, the pressure is on for UK brands who are facing potentially higher import and export costs to still offer customers value while protecting both their margins and their reputations.

Manufacturers who have already tried to compensate for the additional costs caused by the falling post-Brexit pound have faced criticism in the media and resistance from retailers happy to position themselves as the consumers’ champions. Tesco and Unilever’s row over Marmite and other iconic brands was put to bed at record speed but the issue itself looks set to run and run.

Cutting price is often seen as simple ‘quick-fix’ when trying to appear good value; but the problem with price cuts is that, unless they are part of a long term strategy aligned with the budget sector of the market, in the medium to long term, they damage a brand’s reputation and cheapen the identity as a whole. Put simply, the long-term consequence of price cuts is devaluing the brand.

Brands and manufacturers need to think instead of their long-term goals. A quick fix is very rarely the answer and will more likely create further problems down the line.

The price of loyalty

With a longer term strategy, such as a focus on loyalty, brands can instead start building up consumer engagement and retention. According to forbes.com, just a 5% increase in customer retention can boost a company’s profitability by a staggering 75%. This impressive statistic highlights just how important consumer loyalty is – and the huge value in repeat customers.

Experts say that it can be six to seven times more expensive to acquire a new customer than to keep an existing one, so the importance of loyalty is clear.

Risk and reputation

Savvy consumers will look always for value – but rarely at the expense of quality. Resorting to price cuts will only serve to cheapen a brand’s identity, creating the impression of poor quality. If a brand wants to be seen as still delivering quality products, and so drive customer interest, while still achieving margin targets, it would be far better to get clever about tapping into the consumer psyche.

Clever brands think of their objectives with every consumer campaign, whether the activity involves creating a buzz with coupons offering the opportunity to ‘try me free’ at launches, or driving repeat purchase and building loyalty with ‘Money Off Next Purchase’ offers or encouraging one-off purchases with well-aligned, inspiring prizes.

Manufacturers need to focus on what their brand associations are and offer something completely complementary to these. Something tangible like a prize or a getaway adds value to a product, balances risk and increases the opportunity to connect with the customer in further marketing and social media communications.

Sodexo’s Savvy Cynics report found that over a third of consumers interviewed were more likely to buy a product that was part of a promotional campaign, which clearly demonstrates that the potential impact of a well-planned campaign is massive.

Just the ticket

For clever brands who have researched and developed their strategy, focused in on their target audiences and settled on their key objectives, the trickiest part can be deciding which prize mechanism works best to excite and reward their customers – should marketers opt for adding value with physical prizes that have great product synergy or should they be exploring something a little more personal, like a tailor-made holiday experience?

Research suggests that the Millennial generation of consumers does find far more value in an experience than in a physical thing, with three in four of them saying they are willing to spend more on events and experiences than ever before.

Events and experiences doesn’t just mean winning exotic holidays, or dream trips to sporting events; cinema offers another tried and trusted option. Brands can partner with the latest blockbuster film via competitions offering tickets as prizes to create a real buzz around a product, while shrewd brands may also consider aligning with film in a more general sense, offering longer-term promotional activations giving people discounts on cinema tickets for example. Linking with individual films or with the cinema in general can be hugely attractive – over 70% of 16-24 year olds cite cost as a reason why they don’t visit the cinema as often as they would like.

Consumer cred: adding value

The key to keeping consumers on side is not offering them something for less, but rather something more. Price cuts and BOGOFs can only go so far before a product starts to lose value. They can also put customers off with confusing price points that seem to fluctuate throughout the year or, worse, make more consumers into promiscuous shoppers.

By keeping prices relatively stable but supporting brands with value-added promotions, marketers can maintain or even increase long term brand value and avoid cheapening brand image.

Added-value promotions also allow marketers to capitalise on a range of opportunities to raise the profile of their products, boost sales and be seen by consumers as offering something a bit extra. Clever promotional marketing campaigns can see help manufacturers align with the latest trends, whether in cinema, travel, music, sports or consumer goods while maintaining a healthy brand image.

Promotional marketing gives a brand the opportunity and environment to display its personality and drive engagement and conversation with their target shopper, or potential shopper, in a way that a BOGOF simply cannot.

Chris Baldwin is Director of Consumer Programs at Sodexo. The Sodexo family, which includes the Promorati brands Protravel, Filmology, Fotorama and Entice, is Headline Sponsor of The IPM Awards 2017.

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