How do prize promotions make your shopper marketing campaigns more successful?
Following the pandemic, there’s definitely a need to increase in-store footfall and prize promotions are perfect for this.
Prize promotions are a vital aspect of shopper marketing strategies for some of the biggest brands in the world. It’s no secret that if you get a customer excited or put them in a positive mood, they’ll choose your products over those of your competitors. But why are prize promotions so good at grabbing consumers’ attention and promoting purchases.
What is shopper marketing?
Shopper marketing is when a brand focuses on winning over a customer at the point of purchase. When someone is in the store, they’re at the purchasing stage, so shopper marketing aims to make an immediate impact and directly appeal to customers in the aisles.
These last-minute marketing efforts can take many forms, including unusual packaging, free gifts or samples, in-store discounts or prize promotions.
Why is a shopper marketing strategy important?
A huge number of customers make their purchasing decisions when they are actually in the store, so it’s important to whet their appetite at the exactly the right time – when they are just about to buy.
With so much shelf competition, brands need to maximise the chances of their product being picked. To help persuade shoppers, there needs to be something in-store and on the products to ensure that theirs stands out in the crowd.
And it’s not just brands that utilise shopper marketing campaigns. Retailers want customers to choose their store and to come back through their doors time and time again, week after week.
How can a prize promotion improve your shopping marketing strategy?
When customers walk down the aisle of a supermarket, they’re presented with a number of brands and they’ve got to make a choice. Sometimes the prices are very similar or they don’t have a go-to brand that’s their favourite. So, how do you get someone to buy your product over everyone else’s right at that moment?
There are a number of tactics that can be employed here, and one of the most successful is offering a prize promotion. Here are just a few of their benefits for shopper marketing:
Achieve stand out on the saturated shelf. A prize giveaway can ensure a prime shelf position for your product and give you a huge advantage over competitors.
Encourage customer retention and repeat purchases. Provide your customers with a positive, fun experience and they’ll remember you, making them far more likely to purchase again in the future.
Promote customer loyalty. Winning a prize develops a customer’s sense of loyalty.
Target your marketing precisely. On-pack prize promotions are in front of customers right at the point of purchase.
In-pack or on-pack prize promotions successfully deliver against a whole host of shopper marketing objectives – increasing sales, frequency of purchasing, and customer retention.
How do you use prize promotions for shopper marketing?
As competition for consumers’ cash becomes fiercer and fiercer, so shopper marketing and promotions – whether that’s prize or price –become more and more important. There is a wide range of prize promotion mechanisms that can be invaluable for shopper marketing, but I’d recommend the following three types to enhance your shopper marketing efforts:
From a customer’s point of view a text-to-win draw is really simple. The packaging and supporting materials tell them that when they purchase a product they’ll find a unique number inside that could win them a prize. They simply need to text this number to a short code to discover if they’re a winner.
From the prize promotions agency’s point of view it’s not quite so simple as there’s some complicated engineering behind the scenes, but, hey, at Prizeology that’s what we specialise in and that’s what we’re good at, so you can confidently leave that side of your shopper marketing campaign to us.
Text-to-wins are a popular choice for shopper marketing strategies, because they help products and brands stand out on the shelf and drive sales at the point of purchase. Here at Prizeology, we’ve run plenty of them for brands who want to enhance their shopper marketing. The KP snacks ‘Take your lunch to the next level’ campaign is a recent favourite. This was an on-pack text-to-win prize promotion where customers found out instantly after texting if they’d won a mega prize.
Similarly, other types of in-aisle on-pack promotions can also encourage sales. Customers might need to go online to input a unique code and find out if they’ve won a prize, but the basic principle is as already outlined.
And once you’ve driven customers to your website or a custom-built microsite (this is something Prizeology often creates for our clients) you have the opportunity to engage with them in even more ways.
Haribo ran its largest ever on-pack promotion with Prizeology. Once an hour, every day for six months, customers could win prizes by inputting a unique code printed on packets of sweets. There were 4,200 prizes available in total and the instant gratification of winning – not to mention the impeccable manner in which it was run! – made it a huge hit.
Some great examples of shopper marketing prize promotions
I’ve had the pleasure of running lots of successful prize promotions as part of the wider shopper marketing strategies for some of the biggest brands. I’d love to share with you some of my favourite campaigns that I’m really proud of and show you how effective prize promotions can be for your shopper marketing plans:
QVC’s instant win promotion
In January 2021, QVC ran an instant win prize promotion with Prizeology. We created the concept, built the mechanic, wrote the Ts&Cs, mailed the prizes and dealt with customer queries. Most importantly, we wanted to ensure we could measure the impact of the prize promotion, so we launched it when there wasn’t any other ongoing promotional activity.
A promotion with a large number of prizes on offer is particularly attractive to customers, because even if they don’t win the big prize, they have a better chance of winning something, even if it’s fairly small. For the QVC promotion, here were 1000 prizes to be won across a three-week period, coupled with one large £10,000 grand prize. With this prize structure, we created a highly appealing prize draw.
Customers simply had to make a purchase and used their order number to enter the draw. We used a virtual spin-the-wheel mechanism to make the winning moment both fun and memorable for customers. Winners of the smaller prizes received an instant on-screen notification and at the end of the promotion all the entries were put into a prize draw for the grand cash prize.
Did the promotion support QVC’s shopper marketing strategy? The promotion received an average of 30 entries a minute and therefore created a huge level of interaction between the brand and customers. In the words of the client, “The promotion was a great success with over 250,000 entries and a 38% engagement rate.”
Kingsmill’s magic moments promotion
By collecting a code from the ‘best before’ tag on their loaf of bread, Kingsmill customers could enter a prize promotion with cash prizes ranging from £10 to one major prize of £10,000 and including a special grand prize draw at the end of the promotion.
To input their code entrants visited a microsite, created by Prizeology. Importantly, this had built-in security and anti-fraud features. When they clicked, if entrants hit a predetermined ‘winning moment’ they found out instantly if they’d won.
Did the promotion support Kingsmill’s shopper marketing strategy? Yes, it did. Kingsmill achieved standout on the shelf and deepened its customer engagement.
Prizeology can help you make your shopper marketing campaign happen – just give us a call on 020 7856 0402 or drop us a line on firstname.lastname@example.org.
Sophie Robertson is Prizeology’s Senior Project manager.