Are you struggling to justify marketing spend to finance? Traditional advertising can be a gamble, offering murky results and making it difficult to pinpoint which campaigns actually drive sales and contribute to the bottom line. This is where Guaranteed Reward Campaigns with De Risk International’s Reward Risk Coverage come in, offering a data-driven approach that financiers will love.

The Challenge: Aligning Marketing Spend with Financial Goals

Businesses constantly seek effective ways to influence customer behavior and achieve marketing objectives. However, traditional advertising presents a challenge for finance teams:

• Difficulty Measuring ROI: Isolating the impact of advertising on sales and engagement within a complex marketing mix is complex, making it difficult to demonstrate a return on investment.
• Uncertain Budget Control: Unforeseen cost increases and unclear campaign performance can wreak havoc on marketing budgets.

Guaranteed Reward Campaigns: A Financially Savvy Marketing Approach

De Risk International offers a solution that mitigates risk and enhances financial clarity for marketing teams:

• Shifting the Focus to Measurable Outcomes: Guaranteed Reward Campaigns incentivize desired customer actions – purchases, sign-ups, or brand engagement – through rewards. This targeted approach is demonstrably more effective than traditional advertising, driving quantifiable results that finance teams appreciate.
• Targeted Customer Acquisition: Rewards tap into consumers’ desire for benefits, driving them to take actions that align with your business goals and directly contribute to revenue generation.
• Results-Based Cost Model: Costs are incurred only when the desired outcomes (e.g., purchases) are achieved, significantly mitigating campaign risks and ensuring efficient budget allocation.

De-Risking Your Marketing Investments: Predictability and Control

De Risk International’s Reward Risk Coverage empowers you to leverage the power of rewards with complete financial predictability:

• Fixed Upfront Fees: Eliminate budget uncertainty. De Risk International locks in a clear, fixed fee upfront per unit, giving you complete cost control and transparency, allowing for accurate budget planning and forecasting.
• Crystal-Clear ROI Measurement: Every sale directly translates to reward expense, making ROI measurement a breeze. You can confidently justify marketing spend to stakeholders with clear data demonstrating the campaign’s contribution to profitability.
• Risk Control and Cost Overrun Protection: De Risk International eliminates unknown costs and surprise liabilities, simplifying accounting. You’re protected from any cost overruns, ensuring your marketing budget stays on track.

The Benefits of Reward Risk Coverage:

• Confident Budgeting and Forecasting: Knowing your reward costs upfront allows for better budgeting and financial planning, ensuring marketing spend aligns with overall financial goals.
• Optimize Reward Value for Maximum ROI: De Risk International helps you strike a balance between offering attractive rewards and maintaining financial sustainability, maximizing the return on your marketing investment.
• Risk-Free Investment: You eliminate the risk of high redemption rates impacting your budget, protecting your marketing spend.
• Justify Marketing Spend: With clear ROI data, you can confidently present the value proposition of marketing initiatives to stakeholders and secure the budget you need for growth.

Turning Rewards into a Profit Engine: The Self-Funding Model

De Risk International’s fully underwritten Reward Risk Coverage unlocks the power of rewards, making them a self-funding investment that boosts sales and guarantees profitability. Here’s the magic:

• High-Value Rewards, Lower Costs: Unlike traditional programs, we enable you to offer truly attractive rewards at a fraction of the cost you’d pay if you took on the full liability yourself. We analyse your campaign and estimate the “breakage rate” (unredeemed rewards). Based on this analysis, we offer a fixed cost per reward that’s significantly lower than the full reward value.
• Fixed Price Peace of Mind: This fixed cost is locked in upfront, regardless of how successful the campaign is or how high the redemption rates become. You’ll never pay more than the agreed-upon price, eliminating budget surprises and ensuring financial predictability.
• Our fixed upfront fees per reward provide budget certainty. You can then strategically integrate this cost into your product pricing.
• For example, imagine you sell €100 appliances with a 30% profit margin (€30 per sale). Offering a €10 value reward (gift card, discount, etc.) becomes an attractive incentive for consumers. This increases the perceived value of your product and makes the justification of buying it, or taking the desired action (like opening an account), more compelling. As a result, consumers are more likely to convert, leading to increased sales.
• The increased sales generated by the successful campaign naturally cover the reward expense. With more sales due to the campaign’s success, the extra profit can easily cover the €10 reward cost per unit sold. This creates a closed-loop system that guarantees profitability.

In essence, you’re leveraging the marketing campaign to attract more customers, generate even higher profits, and seamlessly absorb the reward cost within your pricing strategy. You’re not just offering a reward, you’re making a strategic investment that boosts sales and profitability.