Consumer Promotion Look Book

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Consumer Promotion Look Book 21 Reward-Based Promotions to Boost Your Business Today

Transcript of Consumer Promotion Look Book

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Consumer Promotion Look Book

21 Reward-Based Promotions to Boost Your Business Today

© Blackhawk Network Inc. Confidential and not for replication or distribution. 2

21 Reward-Based Promotions to Boost Your Business Today

© Blackhawk Network Inc. Confidential and not for replication or distribution. 3

In the age of the customer, marketers know that each sale, customer acquisition and customer retained is hard-fought. Savvy shoppers are accustomed to promotions and rewards at every turn and respond better to frequent discounting than an everyday low price.* Businesses, in response, are left scrambling to constantly churn out new and compelling promotions that will break through the clutter.

Exhausting, right?

Hawk Incentives is here to help. We’ve compiled this look book to spark ideas for rewards-based promotions that you can implement today to drive sales, loyalty and customer satisfaction. We’ve even detailed 21 specific promotions that respond to marketing goals like customer acquisition, retention, appeasement, win-back and more.

The good news is there are more and better reward options than ever before, allowing you to design promotions that will delight consumers and meet them wherever they are: in store, online, on their mobile phone or even in mobile wallets.

Let’s continue for 21 market-tested promotion ideas to get your wheels turning.

Reward-Based Promotions to Boost Your Business

*“Price Commitments with Strategic Consumers: Why it can be Optimal to Discount More Frequently ... Than Optimal” was published in 2015 by the Haas School of Business, University of California Berkeley.

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Awareness & Trial

When consumers aren’t familiar with your brand, the first step of building awareness and interest is the hardest. So, rewarding promotions are an effective way to drive brand recall and compel consumers to give your company a try. Here are several promotions you can implement to drive awareness and trial.

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Awareness & Trial: Test Drive

Mail consumers an inactive prepaid card with an invitation to take a test drive, request a quote or some other action. Once complete, your sales associate instantly activates the card with $50.

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Awareness & Trial: App Download

Invite customers to download and try your mobile app with the promise of a $10 egift to use on their first in-app purchase.

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Awareness & Trial: Survey

Ask prospective customers to take a short online survey, which could introduce them to your brand and provide you with business intelligence and the survey takers’ email addresses. In exchange, give survey takers a $5 digital reward, delivered in real time.

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Awareness & Trial: Tradeshow

Use $25 instant-issue prepaid cards as a carrot to incent prospective customers to speak with you at a tradeshow or in-field event.

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Customer Acquisition

In the promotion-saturated world we live in, consumers are used to being marketed to all day, every day. So, when you’re hoping to turn a prospect into a customer, design your promotions to make them stand out by offering desirable rewards. Here are a few ideas for rewards-based promotions that drive customer acquisition.

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Customer Acquisition: Rebate

Offer a rebate that will give your customers the very lowest price on a certain product or service. Drive interest in the promotion by offering payout in the form of a Prepaid Mastercard® Virtual Account, which can be delivered faster via email.

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Customer Acquisition: Subscription

Email or mail your customers a code for a $10 egift that can be applied to their first bill when they start a subscription service.

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Customer Acquisition: Relevant Reward

Offer consumers a multi-merchant prepaid cardas a reward with purchase and make the card usable on goods or services complementary to the originally promoted item. For example, if the shopper bought an exercise bike, offer a prepaid card that can be spent at health and wellness retailers, spas or fitness centers.

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Customer Acquisition: Bundle

When shoppers buy a “bundle” of three or more products, offer them a $15 gift card from your brand—driving them in for the original promotion, and ensuring they’ll come back again to spend their reward.

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Loyalty & Retention

Consumer loyalty can be fleeting in the digital age, when the next best thing is just a mouse click or thumb swipe away. Shoppers are also savvier than ever and are willing to work to find the best deals. Infusing your loyalty programs with compelling promotions is a smart way to maximize loyalty and retain your customers. In fact, Hawk Incentives research found 79 percent of consumers look for deals in their loyalty and rewards programs before they shop.* Here are a few easy promotions that can bolster loyalty and retention and benefit your business in other key ways.

*“The Recession May Be Over, But Deal Seeking Isn’t” was an online survey conducted independently by Leger on behalf of Hawk Incentives between Feb. 28 and Mar. 12, 2017. The sample size included 2,001 American respondents ages 18+. A probability sample of the same size would yield a margin of error of +/-2.0%, 19 times out of 20.

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Loyalty & Retention: Surprise & Delight

Surprise consumers with a $10 “thanks for being our customer” egift delivered via email, this will delight consumers and also drive spend back to your brand.

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Loyalty & Retention: Stickiness

Offer a $50 prepaid card for an activity found to drive customer “stickiness” in your business, such as signing up for online bill pay.

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Loyalty & Retention: Reward Choices

Build a points-based loyalty program that offers a wide range of physical and digital prepaid and gift cards in various dollar values as rewards. Our research uncovered that consumers prefer prepaid rewards to other options.*

*“Reward Preference” is an online survey of 1,022 smartphone owning Americans completed by Leger for Hawk Incentives between February 10-28, 2017. A probability sample of the same size would yield a margin of error of +/-3.07%, 19 times out of 20.

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Loyalty & Retention: On-time Payments

For recurring expenses (like insurance, car payments, etc.) issue customers a reloadable prepaid card and automatically load $20 onto it after three consecutive on-time payments.

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Win Customers Back

Did a competitor manage to steal your customers? It’s frustrating, but two can play at this game. Get back in front of these consumers with compelling reward-based promotions they can’t refuse and make it easy for them to switch back to your brand. Here are several ideas for winning back your customers.

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Win Customers Back: Switch Back

For subscription services, mail an inactive prepaid card with a “we miss you” message to your former customers. After they make a quick phone call to switch back to your brand, instantly activate the card.

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Win Customers Back: Retail

In retail situations, customers can be swayed to visit different stores for even a small discount. Mail a $5 gift card (or email a $5 egift for ecommerce) to drive shoppers back to your brand. An added bonus: consumers typically spend more than they have on a gift card by $20. **The “consumer gift card study” is an internet-based study conducted by the Retail Gift Card Association in October 2015. The sample size was 1,000+ American respondents ages 18+.

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Win Customers Back: Mobile Savvy

Are your consumers particularly tech-savvy or do they frequently pay with mobile wallets? Demonstrate you can speak their language by offering a virtual reward that can be added to their mobile wallets if they switch back to your brand.

Virtual Account issued by MetaBank®, Member FDIC.

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Say “Thank You”

There is no greater compliment than your customers referring your brand to others. And this can be a powerful business driver; consumers consider recommendations from friends and family the most credible form of advertising.* Be sure to encourage these behaviors with reward-based promotions that respond quickly to referrals and other forms of advocacy.Here are a few ways for you to express your appreciation.

*The Nielsen “Global Survey of Trust in Advertising” was conducted between Feb. 23 - March 13, 2015 and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America.

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Say “Thank You”: Referral

When a customer signs up for service or makes a purchase, let them know that if they successfully refer more customers to you, they will be rewarded with a $50 gift card or egift,usable with your brand.

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Say “Thank You”: Holidays

Leverage holidays as a reason to ask your customers to refer others. Using an email campaign or online form, invite customers to “spread the cheer” at Christmas or “share the love” at Valentine’s Day by submitting a list of email addresses for friends and family that they’d like to refer to your brand. Reward them in real time with a digital reward.

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Say “Thank You”: Social Media

Customers often talk about their favorite brands and products on social media. When you see this happening, reach out via your brand’s page on the same social network to say thank you. Ask the consumer to connect with you directly, then issue a virtual reward code that is redeemable for a $5 prepaid or gift card reward.

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Say “I’m Sorry”

Mistakes happen. Sometimes a product doesn’t deliver what it promised, or service falls short of consumer expectations. But you can turn these challenges into opportunities with responsive promotions that smooth over the issue and ensure consumers come back. Here are a few appeasement rewards that can keep you in your customers’ good graces.

*The Nielsen “Global Survey of Trust in Advertising” was conducted between Feb. 23 - March 13, 2015 and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America.

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Say “I’m Sorry”: Reimbursement

When shoppers are dissatisfied with a product and return it, issue a gift card for the original price paid, even if the product has been used. This makes it right with your customers while encouraging them to shop again with your brand in the future.

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Say “I’m Sorry”: Service Issues

Quickly respond to customers who give you a low customer service score via phone survey or online by sending a $10 virtual prepaid card to apologize while the experience is still fresh in their minds.

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Say “I’m Sorry”: Out of Stock

In an ecommerce environment, if a shopper attempts to add an out-of-stock product to their shopping cart and then goes to leave website, issue them a $5 egift via pop-up to apologize and encourage them to stay and check out other options.

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Reward Glossary

Let’s take a closer look at the rewards you can use to power reward-based promotions. (So many great options!)Hawk Incentives is the reward expert, with access to the broadest reward selection in the US and abroad.

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Open-Loop Prepaid CardsWith near-universal acceptance (anywhere the issuing card network is accepted) cardholders can redeem them for just about anything imaginable.

Multi-Merchant Prepaid Cards Network-branded cards that let you direct cardholder spending to a specific category or group of merchants.

Five Back™ OptionOpen-loop prepaid cards that give recipients the opportunity to get back five percent of their total spend when they use the card to shop at participating merchants.

Instant-Issue Prepaid CardsDelivered in bulk, inactive and unfunded. When a card is ready to be issued, it can be loaded and activated instantly through an online portal, and handed to the participant, ready to use.

Digital Open-Loop Prepaid Cards An open-loop prepaid card with the added benefits of speed and digital convenience. Delivered via email, these rewards can be spent online or on mobile and added to mobile wallets.

Prepaid Cards

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Gift CardsAlso known as single-merchant cards, these feature the branding of a specific retailer or restaurant chain, and are always single-load.

eGiftsThe digital version of gift cards. These versatile rewards can be delivered instantly, used online, scanned from a mobile device, or printed out and used in-store.

Global RewardsMaking additional considerations for an international audience, these rewards are available in USD and CAD, with international delivery and acceptance.

OmniCodesA virtual reward code that’s delivered and redeemed digitally in a customizable gift card mall that offers an array of physical and digital gift and prepaid reward options. OmniCodesrequire no printing or card production, are brandable and instantly redeemable.

Other Rewards

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Reward Delivery Is Complex, but We Make It Simple

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There’s no end to the details of managing relationships with issuing banks, networks, card merchants and fulfillment companies. Compliance regulations and branding guidelines constantly shift; technology always needs updating. This is where the right partner makes all the difference. Hawk Incentives offers the broadest reward selection in the US and abroad, with the right rewards to drive the right behaviors. Not only that, we’re an industry leader in prepaid reward fulfillment, providing our partners seamless access to our deep consumer rewards portfolio through API, portal and platform. We connect you with a global selection of physical, digital, customized and mobile rewards, supported by robust, quick-to-launch technology and integration. All in one place.Hawk Incentives can be your single-vendor solution for promotional rewards, integrating seamlessly with your company’s workflow and offering you and your customers a better promotion experience.

Reward Delivery Is Complex, but We Make It Simple

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Hawk Incentives, a Blackhawk Network business, is a leading provider of rewards and incentives to organizations across the globe, including many of the Fortune 500. We power an inspiring brand experience with proven delivery of customized rewards for consumer, employee, sales and channel incentive programs. Our expansive rewards portfolio includes multiple patents and industry firsts, including digital and mobile rewards. To learn more, visit www.hawkincentives.com.Hawk Incentives, headquartered in Lewisville, Texas, is a division of Blackhawk Network.

866.219.7533HawkIncentives.com

About Hawk Incentives

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