Matt Butcher, director, PIMS-SCA
I regularly sit down with marketers reviewing and advising on their promotions and more often than not, clients are surprised by our expectations of the likely results. So it’s no surprise to me when the Institute of Promotional Marketing’s Marketing Gap Study confirms what my company already knows; that what marketers think consumers do fails to measure up to reality. As one example, marketers tend to vastly overestimate the degree to which consumers abuse the use of money-off coupons.
Getting redemption estimates wrong can be costly, particularly if promotions are uninsured. Our business relies upon an intimate knowledge of how consumers respond to promotions, using a database built over 25 years. Armed with this knowledge, I invite you to take a lighthearted test to see how you shape up!
The following are based on actual promotions that took place in recent years. Check your answers at the bottom.
1. Free Product Coupon
A leading bread brand put a coupon in a major tabloid newspaper giving consumers a free loaf of bread when redeemed at supermarkets. Consumers had one week to redeem the coupon.
What redemption level did this achieve? A. 2% B. 5% C. 6.5% D. 8%
2. Match & Win
A shopping centre did a door drop leaflet around the local catchment area offering consumers the chance to win a car. All the consumer has to do was take the leaflet to the shopping centre and match the number plate on the leaflet with the number plate on the car.
What redemption / check level did this achieve?: A. 2% B. 5% C. 10% D. 15%
3. Free Mail In
A fruit juice brand ran a collector promotion for free classic DVDs. The consumer had the option to collect 8 PoPs to get a free DVD or 4 PoPs plus £2 towards postage.
What redemption level did this achieve overall?: A. 2% B. 3% C. 5% D. 7%
4. Instant Win
A carbonated soft drinks brand ran an on pack Instant Win promotion to win holidays. The consumer had to look under the label of the bottle to see if they had won.
Redemption / check level?: A. 25% B. 30% C. 40% D. 45%
5. Try Me Free
A children’s soft drink brand ran an on pack Try Me Free promotion. The cost of the product was £1.20. The consumer had to mail in a proof of purchase to get the cost of the product refunded to them.
Redemption level?: A. 4% B. 6% C. 7% D. 10%
6. Online Check & Win
A breakfast cereal brand ran an on pack promotion offering £5 million in cash and gadget prizes. The consumer had to check the unique code from inside the pack and enter this on the promotional web site to see what they had won.
Redemption level?: A. 2.5% B. 4% C. 5.5% D. 6%
7. Money Off Next Purchase Coupon
A household kitchen towel brand ran a door drop campaign where the leaflet had a coupon for 50p off their next purchase. The RRP of the product was £1.50. The coupon was valid for 30 days.
Redemption level?: A. 3% B. 4% C. 5% D. 7%
8. Retailer Promotion – Game Card
A major super market gave consumers a Peel & Reveal game card when they spent over £20 in store. The promotion offered millions of prizes to be won including free products, free shopping and major prizes such as holidays.
What was the redemption rate?: A. 30% B. 40% C. 50% D. 60%
9. Money Back Guarantee
A frozen Pizza brand offered consumers their money back if they didn’t think it was the best tasting frozen pizza. Cost of the product was £2.
The consumer had to mail in a proof of purchase along with a 15-word statement explaining why they did not like the product.
Redemption level?: A. 0.25% B. 0.5% C. 1% D. 2.5%
A soft drink brand offered 25,000 coupons online for a free bottle of the drink which was worth £1.25.
What percentage of the 25,000 coupons were redeemed?: A. 7% B. 12% C. 18% D. 25%
Q1. Correct Answer: D. 8%
Q2. Correct Answer: C. 10%
Q3. Correct Answer: B. 3%
Q4. Correct Answer: B. 30%
Q5. Correct Answer: A. 4%
Q6. Correct Answer: A. 2.5%
Q7. Correct Answer: C. 5%
Q8. Correct Answer: D. 60%
Q9. Correct Answer: A. 0.25%
Q10. Correct Answer: B. 12%
So how did you get on?
8 or more questions right = Promotions Genius
5 or more questions right = Better than the average marketer
Under 5 questions right = Must try harder!