Increasing sales with a promotion: which one to choose 8 September 2023 Let’s take a look at promotional mechanisms to help you impact your sales Why organise a promotional initiative to increase your sales? Simple, because the opportunity to win a prize or the certainty of receiving a gift or a refund on a purchase are very effective levers to make the consumer choose your product or service instead of the competition. To impact sales, one of the best solutions is to organise a prize competition that requires the purchase of the promoted product or service, allowing participation only to those who provide adequate evidence of the purchase. Other effective formulas are prize promotions and cashback campaigns on which, subject to making a purchase, you can offer freebies or refunds to consumers. Let’s look at the most appropriate types of promotional initiatives to help you increase the sales of your products or services. Increasing sales with a promotional initiative There are several promotional mechanisms you can choose from to impact sales: Online prize draws and competitions with purchase Online prize draws and competitions with card Gift with purchase promotions Cashback Let’s take a look at each of these mechanisms together to help you choose the one that’s right for you. Online prize draws and competitions with purchase To participate in an online prize draws and competition with purchase, the user, after purchasing the promoted product, will have to connect to the initiative website and register with the data required by the regulations. Prizes can be awarded, depending on the mechanism of the competition: with a final draw in Instant win mode; A fundamental component of an online prize draw or competition with purchase is the way in which the user demonstrates that they have made the purchase and, therefore, has the right to participate. The proof of purchase can consist ofthe purchase receipt or a unique code found in each individual product, you can choose the mode you prefer yourself. Be careful, however, because both solutions have advantages and disadvantages that you have to weigh up to make the most suitable choice for your draw or competition. The Unique Code offers you greater security that the purchase has actually been made but it is a more expensive solution because it requires you to apply the code on the product packaging, which is not always compatible with the production processes. The purchase receipt does not involve additional costs but offers you less participation security , it conforms to rules of participation in accordance with the rules of the contest. Among other reasons, it is valuable because nowadays there are many tools that allow you to falsify receipts and returns. Participation in the prize competition, therefore, can take place in several ways: by requesting the insertion of the unique code in a special online form or on WhatsApp by uploading the receipt on the prize draw website or on WhatsApp after requesting the numerical data that make it unique Online prize draws and competitions with card Even in the Internet age, prize competitions with card contests are still widespread, especially in specific situations. They are used, for example, if you want to carry out a competition at a trade fair or at the point of sale, engaging customers with the help of sales staff. There are three types of cards you can use in a prize contest aimed at boosting sales: scratch card: after purchasing the product at the point of sale, the consumer receives the card and immediately finds out if he/she has woncoupons to be filled in: when the customer buys the product, he/she receives at the checkout a card to be filled in and put in the urn at the time or to be sent together with the receipt to a specific address with a unique code: in this case it is a combined + online mechanism. At the checkout, the customer receives a postcard containing a unique code that must be entered, after registration, on the promotion site. The most used winning mechanisms for the prize competitions described are: with a final drawInstant win; a combination of the two Instant win and final draw mechanisms, winning a super prize. Gift with purchase promotions In gift with purchase promotions, we offer a free gift to all people who buy a certain product or service. You can decide to structure your prize promotion in several ways, for example: with delivery of the prize at the same time as the purchase of the promoted product or activation of the service against single or multiple purchases or when a precise spending threshold is reached by collecting a specific number of proofs of purchase or stamps requesting a financial contribution that allows the purchase of a second product at a discounted price In the event that you require the consumer to make multiple purchases to receive the prize, as is the case, for example, in short collections or with loyalty cards, your prize promotion operation may have a long duration to allow you achieve the level of customer loyalty. Incentive campaigns that can be aimed at employees, retailers, professionals, etc., to motivate them to contribute to the achievement of your company’s sales goals, are also part of this promotional category. Cashback With a cashback campaign you give back to your customers some of the money they spent on the purchase of your product or service. This formula is increasingly appealing to consumers who appreciate the possibility of obtaining a real refund that they can receive with a bank transfer directly to their bank account or by PayPal. You can decide to set up your cashback campaign in several ways, here are some examples: draw up a list of products from which the consumer must choose in order to participate define a maximum limit on the number of refunds that a consumer, or their household, can request You can activate a cashback for any product or service by creating an online platform that allows consumers to register and upload the purchase document to request a refund, but you can also request that it goes to a specially created post office box. The cashback can also ensure you provide for the reimbursement of the full cost incurred by consumers if, among your objectives, you also include making new products or services known. In these cases, the promotional formula is called “try it for free”. Increase your sales anywhere in the world You can organise these promotional initiatives in your country and abroad. Remember that each country has its own regulations on promotional initiatives and certain mechanisms are often regulated differently or, in some cases, may even be prohibited. To give you just a few examples, draws and contests with purchases are prohibited in the United States and Canada, they are subject to more complex requirements in the Czech Republic and are legal only if of short duration in Switzerland. Relying on the support of an agency specialised in international prize draws and competitions, as well as prize promotions, protects you from making mistakes that could cost you in fines. 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