The best marketing plans are flexible. While a solid roadmap is crucial, unforeseen trends, change in consumer behaviour, market shifts and opportunities can emerge. We explore justifying promotions outside your initial plan and how De Risk International’s Rewards Risk Coverage can empower you to act.

Capitalizing on Market Shifts

• Respond to trends: Consumer behavior can be fickle. A well-timed promotion based on a hot trend can supercharge sales and brand awareness. Be nimble and adapt your strategy to capture these fleeting moments.
• Fill marketing gaps: Identify areas where your current plan falls short. Promotions can address these gaps, like gathering customer data or boosting sales in a specific region.

Building Your Case for a Promotion

• Strategic fit: Demonstrate how the promotion aligns with your long-term goals. Does it target a new audience, elevate brand awareness, or clear out slow-moving inventory?
• Measurable impact: Outline how you’ll measure success. This could involve increased sales, website traffic, or social media engagement.
• Data-Driven Justification: Back your claims with market research or customer insights. Quantify the expected benefits whenever possible.

De-Risking Your Rewards Strategy: How Rewards Risk Coverage Empowers You

Picture this: You discover a red-hot trend with the potential to send sales soaring. A perfectly timed promotion could be a game-changer. But there’s a roadblock – the uncertain cost of rewards. Traditionally, you wouldn’t know the final expense until the campaign ends, based on how many rewards are redeemed. This makes budgeting tricky, as you shoulder the full financial liability (both Profit & Loss and potential Balance Sheet impacts.) 

Here’s where our Rewards Risk Coverage steps in, offering a solution to these budgeting headaches:

• Budget with Confidence: De Risk International analyses your campaign beforehand to understand the potential scope of rewards redemption. Based on this analysis, we provide a fully underwritten guaranteed upfront cost for your rewards coverage. This eliminates the budgetary uncertainty associated with traditional methods and allows for seamless integration into your existing marketing budget. No more scrambling for additional resources or facing budget overruns.
• Streamlined Approval Process: Knowing the exact cost upfront simplifies the approval process for promotions. This allows you to move quickly and capitalize on time-sensitive trends.
• Improved ROI Calculations: The guaranteed upfront cost empowers you to make more accurate Return on Investment (ROI) calculations. This strengthens your case when presenting the promotion to stakeholders and securing buy-in.
• Focus on Execution, Not Risk: With the financial risk mitigated by this fixed fee, your marketing team can focus their energy on the creative execution of the promotion instead of worrying about cost overruns.

Making it Work: A Seamless Integration

• Craft a clear message: Ensure the promotion aligns with your brand identity and resonates with your target audience.
• Simplicity is key: Prioritize easy-to-understand mechanics for faster implementation.
• Seamless Customer Experience: A smooth redemption process and clear communication are crucial for a positive customer experience.
• Compliance Matters: Ensure your promotion adheres to local regulations regarding consumer protection, data privacy, and promotions.

Rewards Promo Examples to Seize Opportunities

• Capitalize on Seasonal Trends:

1. Back-to-School: Offer rewards for school supplies or dorm essentials.

2. Holidays: Create gift bundles with bonus rewards for popular holiday gifts.

3. Shoulder season Travel bookings:  Offer travel-based rewards (e.g., hotel stays, local flights, cruises) for booking during off-peak times.

• Responding to Customer Behaviour:

1. Trending Product: Bundle a less popular product with a trending one and offer cashback for buying both.

2. New Customer Acquisition: Provide a special welcome offer for first-time purchases.

• Encouraging Specific Actions:

1. Social Media Engagement: Run a contest with an attention grabbing headline for user-generated content related to your brand.

2. App Downloads: Offer exclusive rewards for downloading your brand’s mobile app.

• Seizing Shifting Opportunities:

Trend: Unexpected cold snap impacting summer sales.

Reward: Free tote bag with every swimsuit purchase (encourages future beach trips).

Real World Campaign Example

Patagonia: Doubling Down on Sustainability with Rewards:

Patagonia, renowned for its commitment to the environment, saw a surge in reusable water bottle interest.

• The Challenge: Capitalize on the trend while staying true to their brand values.
• The Solution: “Refill, Not Landfill” rewards program.
• The Reward: Double rewards points for every reusable water bottle purchase, redeemable for discounts on Patagonia’s sustainable clothing lines.
• The Results: A smashing success! 100% increase in reusable water bottle sales during the promotion. Customers redeemed points towards sustainable clothing at a higher rate. Positive social media buzz praising Patagonia’s commitment to the environment.

Patagonia proves that you can jump on relevant trends and use rewards programs as powerful tools to not only boost sales but also reinforce brand values.

By strategically justifying and implementing promotions, businesses can capitalize on trends and achieve marketing goals. De Risk International’s Rewards Risk Coverage removes a layer of risk, making it easier to leverage these valuable marketing opportunities. Remember, a flexible approach combined with data-driven insights and risk management can turn unexpected events into marketing triumphs.