Promotional Risk Coverage Extends Your Promotional Marketing Budget
Promotional risk coverage allows your company to launch high-impact promotions without the fear of going over budget. Have you ever wondered how your competitors are able to offer huge cash prizes? Have you ever watched in dismay as smaller companies in your market are able to engage your customers with large-value incentives? How can their marketing budgets possibly handle the potential volume of redemption? Your competitors are relying on promotional risk coverage in order to stretch the marketing reach of every promotional dollar. They are offering customers a chance to win valuable prizes and premiums at a fixed cost. They are launching exciting rebate and coupon promotions without fear of going over budget, even if those promotions become huge successes.
You can do the same. You can leverage promotional risk coverage to inject a new level of excitement into your market without worrying about cost overruns.
In this article, you'll discover how over redemption coverage eliminates budgetary uncertainty. We'll explain how promotional risk coverage works and how you can use it to plan each of your marketing campaigns to the penny. You will also learn how to launch large scale promotions with large prizes while paying only a fraction of the associated cost.
Over Redemption Coverage Eliminates The Risk Of Uncertain Outcomes
Imagine this scenario: You've launched a promotion to build new product awareness among millions of consumers. To do so, you're offering a tie-in premium with the purchase of a well-known, entrenched brand. The problem is, your budget can only handle a 20% redemption rate. If response to your promotion exceeds 20%, it will decimate your budget. How can you launch this type of promotion given the uncertainty of your market's response?
Promotional risk coverage eliminates that uncertainty. It provides financial protection in the event that your promotion's redemption rate skyrockets. You'll enjoy the marketing advantages of a high response to your promotion while dramatically limiting your cost.
How Promotional Risk Coverage Works
The lever that allows you to offer high-value prizes, premiums, and coupons without the risk of devastating budget overruns is insurance. Your promotional risk coverage is provided by an A+ insurance company. The insurance company assumes the risk of awarding prize winners and the costs associated with higher-than-anticipated redemption rates.
It's important to realize that promotions offering guaranteed prizes cannot be shielded with promotional risk coverage. The coverage is based upon odds. Once the insurance company calculates the odds of a high-value prize being awarded, they'll quantify the risk and extend coverage for a fixed fee. Odds are also calculated for redemption rates of premiums, coupons, and rebates.
Promotional Risk Mitigation Protects Your Marketing Budget
Your company's marketing budget has limits. The challenge is to work within those limits while squeezing the most value from your promotional campaigns. Promotional risk coverage preserves your budget and lets you plan your marketing costs to the penny. It gives you the flexibility to launch promotions that deliver a stunning impact to your market without assuming the risk of over-redemption or awarding winners. Your budget is protected. Whether your customer wins a one million dollar prize or your premium redemption rate hits 100%, promotional risk coverage protects you from the financial risk.
Promotional Risk Coverage: Large-Scale Promotions At A Fraction Of The Potential Cost
Games and contests that offer consumers a chance to win prizes with a high-perceived value attract enormous attention. The bigger the prize, the higher the response. Without promotional risk coverage, these types of promotions would be all but impossible to launch without assuming an inordinate level of risk.
For example, suppose you wanted to launch an on-pack promotion on a popular brand through which customers could redeem a coupon for a free tank of gas. Further suppose you don't have the financial protection of promotional risk coverage. What would happen if one million consumers redeemed your coupon? Could your budget withstand the expense?
Promotional risk coverage allows you to launch these marketing campaigns without the worry of your budget imploding from a higher-than-expected response. It delivers the marketing exposure at a fraction of the potential cost.
Leverage Promotional Risk Coverage For Your Business
Can large-impact promotions with high-value prizes help your company build brand awareness while motivating a market response? Consider these findings...
According to eMarketer, "The chance to win is the number one most effective tool to motivate consumers to participate in permission-based marketing efforts."
According to Jupiter Research, "82% of consumers will provide private information in exchange for the chance to win."
Promotional risk coverage lets you launch high-impact promotions with budget certainty. It lets you stretch your marketing budget while generating awareness and prompting a response from your customers. Expand your brand; educate your market; excite your customers; drive sales. Promotional risk coverage protects you financially while helping you accomplish all four goals.
Questions and Answers
Promotion budget planning may just be the thing that saves your job, when you remember to include one very important item: Promotional Risk Coverage. Promotional risk coverage becomes an important addition to your promotion budget. Basically, you insure your promotion, including a chance to win, against the odds of someone actually winning the prize.
Promotional risk coverage eliminates the budget uncertainty associated with offering large prizes, attractive coupons, and generous rebates and premiums to your market. It gives you an opportunity to launch exciting marketing campaigns through which you offer high-value promotions that would otherwise lie beyond your budget.
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Promotional risk coverage eliminates the budget uncertainty associated with offering large prizes, attractive coupons, and generous rebates and premiums to your market. It gives you an opportunity to launch exciting marketing campaigns through which you offer high-value promotions that would otherwise lie beyond your budget.
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