Want to be more profitable in 2022? Bundle products with experiences
Running exciting promotions is a way to trigger brand love and increase sales. One thing’s certain for 2022: targets will come – and they’ll likely be increasingly ambitious.
Bundling your products with experiences lets you achieve short-term sales goals without stripping your sales and marketing teams of the tools you need to succeed.
1. ADD VALUE TO YOUR PRODUCT AND REDUCE PRICE SENSITIVITY
The mental account model in behavioral economics explains how an experience not only becomes an additional motivator to buy a product and gives customers more satisfaction when they do, it also leads to higher quality perception, leading customers to believe they got the best deal without compromising quality.
Adding experiences to your offering also increases the perceived value of your product – that is, consumers’ evaluations of the benefits and costs of your brand compared to another.
At RIX Rewards, for example, the value of rewards bundled with products as part of promotional campaigns is perceived five times higher by consumers than actual costs.
Higher perceived value makes consumers less price sensitive and paves the way for up to a 16% price premium on products, along with increased loyalty, according to a report by PWC.
As agency Killian Branding points out, “The most powerful value contribution of a strong brand is the ability to demand and defend higher prices than competitors.”
2. MAINTAIN PRICE INTEGRITY AND AVOID THE DISCOUNT SPIRAL
By bundling your products with experiences, you can run a magnetic sales promotion without discounting your product price, thus avoiding entering a discount spiral that squeezes margins and leaves your brand wide open to lazy threats from competitors.
Not only that, price integrity also appeals to the human desire for consistency when creating
emotional attachments. When consumers know what to expect from your brand, and are
confident they won’t be made to regret their full-price purchase, they’re far more likely to
trust you – which we know is the brand trait most highly regarded by today’s consumers.
“The most powerful value contribution of a strong brand is the ability to demand and defend higher prices than competitors.”
3. POSITION YOUR BRAND IN THE EXPERIENCE ECONOMY
4. EARN BETTER ROI FROM EXPERIENCE REWARDS OVER ADVERTISING
As a marketer, you work to a budget – and it’s your job to deliver maximum return on that
investment. Offering unique experiences can generate higher campaign awareness than
traditional advertising, with lower spend.
Example – Buy and Fly with GoPro
We have partnered with the action camera giant GoPro in Germany and Russia to deliver an enticing offer to push the sales of their Hero7 product right before the launch of the Hero8. As the GoPro audience loves to travel internationally, free flights were sure to catch potential customers’ attention.
Find out more about the goals, steps and results of the campaign here.
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!