It is clear what the benefits of sales promotions are for consumers – and they know it. Demand for rewards and consumer incentives have grown immeasurably in the last year and it’s now what consumers expect wherever they shop. On the surface it would appear that this is a one-sided relationship in which consumers are holding businesses over a barrel. Sales promotion shouldn’t and mostly isn’t something that businesses are forced to resort to. Managed properly and thought out thoroughly, sales promotion can be mutually beneficial – particularly in the current economic climate. So what are the benefits of consumer sales promotions for businesses?

Consumer retention

In the long-term a loyal customer is worth far more to a business than an occasional high purchaser. When a customer is recognised as loyal the emotional involvement with the brand is increased. Showing recognition by offering consumer incentives for loyalty stands to solidify the idea of staying loyal to the brand. Loyalty can be rewarded in a number of ways from offering a coupon at the checkout to points collection cards.

Create positive brand associations

Working together with another brand creates a sense of corporate validation and helps your brand to tap into new loyal customer bases. Whatever you trade in there are sure to be a synergistic brands for you to work with, for example hotels and theatres or gyms and sports clothing retailers. It can also work well for pushing you brand’s image in a new direction by moving away from the logical partnerships, for example if you want to raise your green credentials how about teaming up with environmental brands such as The National Trust?

Increase brand recognition

Brand recognition is essential for enticing customers to buy your product/service over another. The authority recognition gives your brand offers consumers confidence in your product/service, as they know what to expect. Increasing brand recognition comes from offering your sales promotion to a wider audience than your regular customer base. A good example of this is featuring a consumer incentive or exclusive discount in a loyalty and membership programme or discount club. These programmes are usually a free marketing option, managed by an external agency that have an large existing customer base.

Reach new consumers

Sales promotion can be one of the most effective ways to catch new customers’ eye.  The best ways to offer a discount or consumer incentive is through a loyalty and membership programmes/ discount club or a chance to win a grand prize. By doing this you are giving consumers a reason to stray away from the brands they are usually loyal to. Competitions are an instant way to catch people’s attention but loyalty and membership programmes or discount clubs go out to an established customer base and can sustain a lasting message.

These rewards are useful to any business and however you want to represent your brand there is a sales promotion answer for your business, that can be effectively integrated to compliment any marketing plan.

Contact us if you would like to discuss how one of our loyalty and membership programmes/ discount clubs or consumer incentive and rewards can benefit your brand.

In the first half of 2009 the entire ad spend in the UK shrunk by 16.6% but online advertising accounted for 23.5% off this – a growth of 4.6%, according to a study by the Internet Advertising Bureau (IAB) – the trade body for digital marketing – in partnership with PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC). These statistics not only point towards the change in spending but they are very telling of the reasons why. Maybe this isn’t just a recession solution, might it be signalling a permanent change in the way marketers approach their marketing strategies? So if traditional medias such as TV are shrinking what are the other options in an ad saturated world?

Loyalty and membership programmes or discount clubs

Sales promotion is very appropriate at the moment as more and more people look for the best deal, whatever they buy. This is for a number of reasons – the most obvious being the recession but the rise in internet comparison sites and the culture of having access to a number of business websites, cannot be ignored. For businesses selling a product or service offering a discount or freebie is a great recession solution, but needs to be done in a controlled manner. Just releasing an offer onto the internet can lead to over-redemption and subsequently the devaluation of your brand.

By offering an exclusive offer through a loyalty and membership programme or discount club operated by a third party agency, you get free marketing to a new and often very large customer base. Your exclusive discount can be used by the members of the loyalty and membership programme or discount club and can successfully lead to a mutually beneficial brand loyalty. This is often a free marketing option and fully operated by the third party agency, in return for the exclusive discount. Whilst the coverage is not as wide spread as TV advertising the targeted nature (to people who seek discounts) can mean that a brand affiliation is more likely.

Online

As outlined above, this media seems to be enjoying the biggest growth in recent months and this isn’t necessarily just as a recession solution. The internet has become an intrinsic part of people’s lives whether they are using it for work or social purposes. The scope for reaching millions of people worldwide is immense. Marketers are finding that even when money is spent on online advertising it is considerably less than some other medias and its success can easily be tracked making it easy for you to justify the initial outlay. Paid for online media include banner ads, rich media ads and PPC, by paying for them they have the gravitas of looking like they are from a professional company, they are more likely to look like a trusted site.

Free marketing options include blogging – these can be targeted to certain interest groups or run from your own website, allowing consumers to know the identity of your brand, expose the expertise you can offer them and show an understanding of current issues. Social media sites such as Stumble Upon, Facebook and Twitter are a modern form of word of mouth advertising and should be taken seriously. Recommendations form such an important element in our brand choices as they give a personal validation and a real account of what a business offers. Getting people talking about your brand has always been important but now there is a platform for people to shout their opinions from, on a worldwide scale.

Press Releases

This is a good form of free marketing but will probably never replace the traditional advertising campaign, though it should always be run along side an advertising campaign to optimise brand visibility. This is also a good option for creating awareness as a recession solution when there is no advertising budget. It can also be a less intrusive and more transparent way of talking to consumers that are now very media savvy. Press releases can be released to local and national papers and magazines and can be particularly effective when released to specialist publications linked to the products service that you offer; you also have a more targeted captive audience. The rise in the amount of people consuming their news online has also opened up the floodgates for releasing press releases online. There are sites that you can pay to distribute your press release to the relevant sites such as prweb.com but there’s also an abundance of sites that are looking for content and will publish them for free; again these are usually focused on specific specialist areas so your audience should be interested in what you have to say.

Direct Mail

This is one of the oldest adversaries of traditional above the line advertising. Apart from being a cheaper option it also boasts many other attributes including the ability to personalise and target specialist audiences. It can also can carry a specific campaign message and build brand visibility and recognition. Slightly larger budgets allow companies to send samples etc. and can make the message an experiential communication which instantly gives the consumer an emotional tie to the brand. Talking to people in their own homes can be a double edged sword though, whilst it talks to consumers in their own environment they can feel intruded upon and it can be ignored and written off as ‘junk mail’.

If you are interest in sales promotion through a loyalty and membership programme or discount club as a free marketing option, please Contact Us on 0845 241 2135

Promotional marketing is a great way to reach your customers and engage with their purchasing experience by giving them more of what they want – encouraging customer retention and/or increase customer spending. There are a number of agencies that specialise in developing promotional marketing strategies and those that offer high quality sales promotion/ affinity marketing solutions. We’ve identified some of the key elements that make a successful campaign and promote customer retention so that you can see how sales promotion or affinity marketing can work for your business.

Create a powerful headline

Leading with a powerful, well targeted offer will hook the consumer in instantly. Stating a percentage or monetary value of the discount such as 50% off, save £10 or 2 for 1 hotel breaks can be the most effective communication of a saving. There’s no need to complicate the message, keep it short and basic to avoid confusion – if you have a strong enough offer it will talk for itself. It’s as simple as that!

Get it out there

There are increasingly more and more ways to communicate and distribute your consumer incentive and the more widely it is seen, the more successful it can perform. Advertising your consumer incentive doesn’t have to cost you as much as you might think and in most cases there’s a free marketing option. The internet is a good platform for reaching millions of new people but can be hard to control and can be subject to over-redemption. Online distribution methods include viral campaigns, voucher sites, social media – all of which are free marketing solutions. But remember mass-marketed campaigns can lead to brand devaluation! Keeping control of promotion distribution is now as essential as getting it out there at all.

You can also offer your consumer incentive to your existing customers at point of sale which gives you greater control of distribution numbers. Another option is to offer your consumer incentive to customers through a loyalty and membership programme or discount club, this way you are keeping it to a closed group which responds positively to discounts and could easily lead to a mutually loyal relationship.

Deliver!

When all of the hard work is done there are some checks that sound simple but that can make or break a promotional marketing campaign. First of all make sure your discount works – ensure the promo code or voucher code is active online, over the phone, in-store or by whatever redemption method you have chosen. Try not to tie you customers up in knots over the terms and conditions. Any overcomplicated, or unreadable small print will put people off – remember the purpose of the exercise is customer retention, so be friendly not intimidating.

Get some advice

Promotional marketing or sales promotion/ affinity marketing can seem daunting to set up but there are plenty of agencies out there that can help and it can still be a free marketing option when managed externally. All an external agency will ask for is an exclusive discount for the members of its loyalty and membership programme or discount club. By using an external agency such as The Rocket Marketing Group every aspect of your promotional marketing campaign will be managed from promotion to handling loyalty and membership programmes or discount club members.

Contact Us if you are interested in free marketing solutions that encourage customer retention through consumer incentives. We can discuss how loyalty and membership programmes or discount clubs can promote your brand through sales promotion/ affinity marketing.

As Morrisons announce an underlying profit before tax up 22% to £359m (2008/9: £295m) and the Halifax reporting that house prises rose another 0.8% last month there are now definite signs that the recession is slowing and maybe even that the end of our current economic problems are on the horizon. What does this mean for businesses and the average consumer? Will consumers maintain their spending ransom on businesses, forcing them into drastic recession solutions or will we eventually see the end of the sale season?

It’s hard to know whether people have just changed their spending habits and this is how it is going to stay or if it’s just a fashion/fad/phase that will pass. Businesses and marketing departments definitely have a tough road ahead rebuilding the worth of recession battered brands. This has been an important era for marketing as the spending culture has changed so dramatically. In some cases this is not just due to the recession but the increasingly wide spread use of online shopping, the recession has just acted to highlight the shortfalls of ageing business models – and these are possibly the businesses that won’t emerge from the sale.

Throughout the last year marketers have relied upon discounts and sales as the complete recession solution but now as we move out of this era will the lower prices be forced to remain and move from a desperate recession solution to the norm. All businesses need to start regaining their brand value by ending the sale season and finding other ways to offer consumer incentives. There are other free marketing solutions available which both benefit the consumer and business involved.

These free marketing solutions involve consumer incentives that promote brand loyalty rather than a ‘shop where’s cheapest’ mentality. A good way for businesses to tap into this culture but maintain their brand value is through affinity marketing. This is a free marketing tool which can offer consumer incentives in a number of ways including through loyalty and membership programmes or discount clubs. These clubs work well because they are not exclusively recession solutions. Companies such as The Rocket Marketing Group operate a number of loyalty and membership programmes or discount clubs. Businesses feature in the loyalty and membership programmes or discount clubs as a free marketing solution; all they have to do is offer members an exclusive discount. These discounts act as consumer incentives and they can effectively drive loyalty for the brands featured in the discount club.

If you are interested in free marketing through affinity marketing – featuring your business in one of The Rocket Marketing Group’s loyalty and membership programmes, purchasing a consumer incentive or selling the clubs and generating an incremental revenue please Contact Us.

It seems like all people want at the moment is the cheapest deal, and that lowering prices and putting huge sale posters up is the only way to entice consumers into a shop/business. But with sale savvy shoppers and the help of internet comparison sites how far can this go? Have prices finally reached rock-bottom and how has this aggressive discounting damaged the perceived value of these items/services? Have we allowed the financial panic to reduce brands’ value? The possible recession solutions have raised so many questions for marketing professionals and as we start to see light through the economic gloom the answers are starting to become clearer.

In hindsight it seems short-sighted of businesses to look at aggressive or competitive discounting as the complete recession solution, for example will Pizza Express ever be able to return their prices to the level they were 2 years ago? Many people only visit Pizza Express if they have a 2 for 1 voucher because there’s always an abundance of vouchers online and you can basically download them whenever you like. A lot has changed from 2 years ago when the brand was known to belong in the upper level of high street chain restaurants, to now when you might think of it as a discount Pizza restaurant. It has not only changed our perceptions of the price but also with it the type of people who eat there – in many people’s view it’s not the experience it once was. By heading such an onslaught of discounts, this recession solution has effectively but gradually and probably unintentionally rebranded their business and the brand value has suffered.

Another example of this recession solution is Waitrose, who introduced their Essentials range, giving customers the opportunity to buy quality produce at a low price. This was in response to reports that supermarket shoppers were switching to own-brand goods to save money. Waitrose has always been known as a more exclusive supermarket and this is surely the primary reason people are brand loyal and choose to shop there; so if people are prepared to pay a premium for your products why change that? Waitrose positioning themselves using the same marketing techniques as less aspirational brands was always going to pose the risk of missing the target market. It’s still early days but isn’t it potentially damaging to long term profits if the brand were to be devalued any further or reach the point where their identity was forced to change as Pizza Express’ has?

These are just two questionable aggressive discounting decisions but they are definitely not alone. Is it therefore possible to give customers what they want whilst marketing your business out of the situation? Reducing the price does tap into the mood of the nation but there are ways to do this which make the discounts appear exclusive rather than the norm. Surely this is less damaging to perceived brand value?

Discount hunters often belong to externally managed loyalty and membership programmes or discount clubs that offer their members’ discounts on a variety of products and services. The discounts offered are seen by members of the discount club as a privilege and the brands’ value remains higher than the discount price.

A good example of this is Champneys Health Resorts which is a company offering premium pampering breaks. It’s important that they remain as an elite product because that’s what makes the product/services appealing, so to aggressively discount them would damage the perception of exclusivity. This doesn’t mean that the recession does not hit their business as it has other businesses but they have to approach discounts in a different way. Champneys have chosen to put a select few offers on their website but also offer a discount to members of The Rocket Marketing Group’s loyalty and membership programmes. The brand is still seen as luxury because the offers are presented in a way that makes customers feel like the discount is special.  The 15 % discount they offer The Rocket Marketing Group’s loyalty and membership programme club members is a great offer and has prompted a number of redemptions.

Businesses use loyalty and membership programmes to market their brands to consumers who are specifically looking for a special offer, enticing them to become brand loyal. The idea being, that the members of the loyalty and membership programme or discount club will become brand loyal to the businesses within the savings clubs by giving them what they want in a controlled way. These savings clubs are often offered to businesses as a free marketing option with the proviso that they offer club members a discount on their brand.

The Rocket Marketing Group operates a number of loyalty and membership programmes helping businesses create brand loyal consumers, driving both retention and revenue.

Contact Us for details of how a loyalty and membership programme (discount club) can work effectively for your specific businesses.

Offers correct at time of publication and subject to terms and conditions.