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

Jan 20, 2021

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.

4. 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?


Would you like to find out how we can help you bring your sales promotion to the next level? Then schedule a free consultation today and get some unique ideas that will help you stand out from your competition!

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