5 Things to Consider for Your Next Sales Promotion

Sales promotions are effective revenue-boosting strategies that give customers compelling reasons to choose your brand. But launching a successful promotion requires careful planning across several key areas.

1. Technology

The technology behind your promotion determines the customer experience. On-pack promotions with unique codes require careful planning around lead times and budgets. Receipt and image recognition technology allows customers to upload receipt photos to promotional websites or via text. The platform you choose, whether social media, SMS, WhatsApp, or web, depends on your customer base and desired experience.

2. Budgeting

Your budget determines the type of promotion you can run. Competitions offer fixed costs regardless of participant numbers. Per-customer rewards scale with actual redemptions and can potentially exceed budgets if not managed carefully.

3. Fixed fee insurance

A fixed fee safeguards against over-redemption costs, providing complete financial security. This protective measure manages financial risk when costs threaten to exceed budgets, giving brands peace of mind to run ambitious campaigns.

4. Picking the right reward

The reward must be proportional to the product value and customer effort required. It should match customer demographics, be enticing and accessible. The 'everyone is a winner' concept, where all qualifying customers receive a reward, can be particularly effective.

5. Lottery licence requirements

Lottery licences are required when promotions include competitive elements with major prizes, specifically when a purchase is required and winners are randomly selected. Prize value restrictions apply with licensing, and strategies exist to structure promotions to manage these requirements.