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5 Things You Need to Know to Run a Successful Reward-Based Sales Promotion

Brainstorming marketing ideas to increase sales? You might be consid­ering offering rewards to incen­tivize purchases.

As it happens, we know a thing or two about reward-based sales promo­tions. That’s why we’re sharing our top tips for running a successful reward campaign that helps you increase sales and grow your brand sustain­ably.

1. CHOOSE A REWARD YOUR AUDIENCE CONNECTS WITH

Even the most valu­able reward won’t compel your target audi­ence to buy if it doesn’t fulfil their wants and needs. The halo effect tells us people form a posi­tive impres­sion of some­thing when it’s asso­ci­ated with another thing they like. So, what does your ideal customer aspire to? How can you appeal to their emotions and create a reason to buy?

It’s equally as impor­tant your reward reflects and elevates your brand. Marketers looking to tap into the expe­ri­ence economy will see rewards as an oppor­tu­nity to demon­strate how your product helps customers live their ideal life. For example, perhaps your latest smart­phone has a state-of-the-art camera – so how about giving your customers views worth photographing? Or maybe your kitchen device makes recre­ating recipes easier – so why not offer cooking lessons?

At RIX, we’ve worked with lots of brands to build reward-based promo­tional campaigns, so we know what works. We take the time to under­stand your target market and sales goals, then present you with unique sales promo­tion ideas to help you create emotional connec­tions with your audi­ence and increase your market share.

2. MAKE YOUR TERMS AND CONDITIONS CLEAR

Any smart marketer knows building and main­taining trust with consumers is crucial for growing brand loyalty. Sure, your main marketing message for your promo­tional campaign is about catching their atten­tion, but beyond that it’s vital to outline your terms and condi­tions in clear, simple terms from the get-go, so customers know exactly what to expect.

Not only is ambi­guity or confu­sion a barrier to purchase, unmet expec­ta­tions can also lead to consumer regret that taints their opinion of your brand. Consumers value trans­parency, so they’re moti­vated to buy a promo­tion when they feel confi­dent and comfort­able with the terms and condi­tions. They’re also more likely to feel satis­fied with their purchase – which trans­lates into posi­tive feel­ings towards your brand.

Map out every stage of the customer journey. How do they redeem their reward? How long do they have to do it? Which purchases are eligible? At RIX, we’re experts in running rewards-based promo­tional campaigns, which means we think of all the even­tu­al­i­ties you might not consider.

Your main marketing message for your promotional campaign is about catching their attention, but beyond that it’s vital to outline your terms and conditions in clear, simple terms.
3. INVEST IN ADVERTISING YOUR PROMOTION
If this is your first foray into rewards-based sales promo­tions, you might think taking a new approach means ditching your usual adver­tising. We’re here to tell you other­wise. While there’s no doubt the marketing shout is stronger for a reward-based sales promo­tion – than for a cash­back or discount promo­tion, for example – you nonethe­less won’t get far if no one sees or hears your promo­tion in the first place. And with over 5,000 marketing messages a day to contend with, you need to invest gener­ously and wisely in spreading the word in order to have the greatest impact.
3. ACCOUNT FOR A HIGH REDEMPTION RATE
When it comes to rewards-based sales promo­tions, it’s a fair bet not every eligible customer will redeem their reward. So, how do you calcu­late your expected redemp­tion rate to make sure you can reach the maximum number of customers, without smashing your budget? This is where working with a rewards agency like RIX pays divi­dends. Based on our expe­ri­ence running rewards campaigns, we’ve devised a formula to work out the number of redemp­tions you can expect from your campaign – meaning you can plan with peace of mind. We’re so confi­dent about our method that we’ll cover the cost of any addi­tional redemp­tions over the number we predict. Think of us as an insur­ance policy.
5. PLAN RESOURCES FOR FULFILMENT AND CUSTOMER SUPPORT
Any promo­tion to increase sales requires resource, but if you’re new to expe­ri­ence rewards you might not have the neces­sary infra­struc­ture in place. Trying to make do with what you have can lead to an over­stretched team and disap­pointed customers, if there are fulfil­ment delays or customer queries that go unan­swered. Worse still, inad­e­quate resource can have a detri­mental effect on your brand thanks to the power of word-of-mouth and social media among customers. At RIX, our dedi­cated team takes care of the project manage­ment, reward-fulfilment and all the customer support you need to make your promo­tion a success – from distrib­uting reward vouchers, to setting up a redemp­tion process, to liaising with customers to make sure they’re completely happy. We can scale to any size you need, and offer support in any language. Is that a weight off your mind, or what?