By having a deep understanding of the legal landscape, we can reverse-engineer ideas and prize mechanics to maximize a brand’s headline offers and promotions. With years of experience across an array of different industries, we know pretty quickly what will work, and what won’t… so get us involved early to save yourself time down the track.
Fundamentally, there are two types of promotional risk that we have at our disposal.
Firstly, there is Prize Risk, where we offer a huge prize headline without necessarily paying for the huge cash prize. Why pay $1,000,000 for a cash prize when ‘a chance to WIN $1,000,000’ is arguably as effective (but at a fraction of the cost)?
There are three different types of Prize Risk;
• Skill-based; or
Prize Risk is a relatively simple prizing strategy to generate a straightforward call-to-action. For example, to generate awareness and capture data, a brand might leverage their sports sponsorship property with a ‘Kick for $100,000 Cash’ promotion at half-time. The only element of Prize Risk is the actual kick and the distance, size of target, difficulty etc are the variables that will influence the cost.
Secondly, there is Redemption Risk (or Participation Risk), which covers a myriad of different promotional mechanics allowing us to make a brands’ budget work harder. These include;
• Cash Backs, Try Me Free, Money-Back-Guarantee, free samples, etc
• Gift With Purchase, Collect & Get, etc
• Instant Win, 1 in 5 Wins, etc
From shopper research and our own experiences, we know that ‘Buy X, Get Y FREE’ or ‘Instant Win’ promotions will sell more products than a traditional sweepstake campaign. But, along with the benefits of increased sales from running this type of offer, comes a risk to a brand’s marketing budget and its reputation. By paying an upfront ‘fixed fee’, our clients can rest assured that all of their variable redemption/claim costs (from 0% – 100%) are covered before the promotion hits market.
All of our promotions are legally compliant and morally sound. We always encourage our clients to be crystal clear about what the consumer has to do before they purchase a product or service and the chance of winning. Our clichéd recommendation is ‘if in doubt, spell it out’!
To find out more about how we work, give us a call or drop us an email… we love a chat!