These days, more and more brands are focusing their attention and budgets on loyalty to better connect with consumers to drive sales and advocacy. In today’s world, where social media is cutting more into consumer perception, a loyalty strategy really is essential to the overall attraction to your brand.
This is where using promotions can build and sustain a successful loyalty strategy for the long haul. Promotions play a big part in the success of many marketing initiatives and have attracted millions of consumers to join, engage, and advocate a brand. Incorporating promotions into your marketing mix means you give your consumers the option to immediately engage with your brand and marketing programs for chances to win.
If you leverage prize insurance into your promotional pool, you can also entice consumers to engage for chances to win larger prizes like cars, trips, houses, and stacks of cash. You’ll never award a prize that exceeds your fixed budget which means you have a finite and controlled amount of liability. For example, if you implement an insured game of chance where every game play has a chance to win, and you have more winners or more prizes awarded than you had budgeted for, your insurance provider covers these prizes, not you. All you have to do is cover the prize insurance premium at the outset of the promotion at a fraction of the total available prize pool.
When it comes to rewards and loyalty programs, promotions go a long way to enhancing your solution. Often consumers might earn points in your program but struggle to spend their points. In traditional loyalty programs, consumers spend years collecting enough points to award themselves with a reward from your catalog. A slow point collection by your members is not enough to keep them excited. There is a fundamental flaw when it takes years for a member to get rewarded in a loyalty program. Consumers want to interact with you, they want to find value in your brand, and they want to brag about how great your products are to their friends, and even better, how great your loyalty program is.