Unlock the Secret to Risk-Free Promotions

Leonie Walker, Managing Director at Mando, provides insights into using data analytics to drive successful promotional campaigns and the benefits of fixed-fee risk management solutions. As pioneers in the field, Mando leverages its in-house promotional insights engine to predict response rates and calculate costs upfront. She highlights a case study with Sky Cinema, where customers can claim two free cinema tickets each month. This promotion poses a significant liability due to the high number of potential redemptions. To manage this, Mando offers a fixed-fee solution, allowing Sky Cinema to avoid monthly financial tracking and budget overruns, showcasing effective risk management. She also discusses the success of 19 Crimes’ instant win promotion, where finding a winning cork inside wine bottles offers a share of £100,000. This golden ticket-style promotion transforms the act of buying wine into an adult-oriented treasure hunt, spurring trial and curiosity about the brand, while effectively managing the financial risks associated with high redemption rates.

Andrew, with a summer of sports ahead, what are your top tips for engaging sports fans with promotions this summer?

Sport invites passion, commitment, and enthusiasm, which is why brands invest heavily in it. Avoid generic “label slap” promotions that could run any time of the year on any brand. Instead, tap into the unique connection between the brand and the fan. Focus on the experience and make it something that can only be offered through your partnership with a particular event, whether as an official partner or through clever guerrilla marketing. Be genuine and capture the heart of what the sport is all about.

Thank you, Andrew. Victor, anything to add?

Absolutely. Offer consumers a unique experience but avoid making them the centre of the action. For instance, don’t put them on the pitch with the English football team. Instead, offer exclusive experiences like access to the owner’s box, where they get something special without being the focal point. Many could feel embarrassed having their ability tested again the best? Try to inclusive but also offer something unique and enjoyable.

Leonie, how did you determine the fixed fee with the Asics promotion, not knowing the return rate?

With 40 years of experience, Mando uses predictive modelling based on our historical data to set a realistic fixed fee that covers potential redemptions without causing budget overruns. We also consider the specifics of each promotion, such as how the rewards are communicated to the consumers and the perceived value of these rewards. Our experience has shown that promotions requiring minimal effort, like submitting a simple form, tend to have higher redemption rates compared to those requiring more steps, like visiting a post office.

Andrew, we’re working with a brand that wants the promotion mechanic to include an element of skill instead of just potluck. Any advice?

Historically, every promotion required some element of skill or judgement to win. This meant doing something like answering a question or creating a phrase. While not instant, it built a connection with the brand. It’s a retro mechanic, really taking us back to the 1980s, where tie breakers or similar tasks added brand values to the selection process. This approach can still be effective today, especially if you tailor it to fit modern consumers’ expectations and preferences. Skill-based promotions not only engage participants more deeply but also ensure that those entering have a genuine interest in the brand. This can lead to higher quality interactions and potentially more loyal customers. However, it’s crucial to strike the right balance between making the task engaging and not too difficult that it deters participation.