The Consumer Promotions: What Shoppers Think survey gives us a priceless glimpse into the mind of the consumer.
Now socially savvy cynics, they’re using social media more and more as a way to engage with brands, and try their luck with competitions and promotions.
Brands are turning up online, but many are still failing to truly harness the power of social media. Simply being where your audience hangs out isn’t enough. Marketers need to better understand what consumers want from them in these crowded environments, learn how to inspire action in a space where attention is the currency, connect their digital experience to the physical, and adapt their strategies accordingly. Those who master it can steal a march on competitors and keep pace with the digital revolution…
FOREWARD
Carey Trevill, Managing Director at The Institute of Promotional Marketing (IPM)
The Savvy Cynics report gives us an insight into the development of consumer behaviour that echoes the control we are all looking for in the information we digest, participate in, and pass on. Our personal dashboard has never been more powerful as consumers.
To grab and, more importantly, hold attention, brands need to be using the right media for the right reasons to ensure advocacy. As we become more and more comfortable with what is possible, brands will need to consider the most effective touch points for their audience types.
This report demonstrates that brands can no longer make broad assumptions, like Instagram only appeals to a southern UK demographic or that older consumers revert to websites to enter promotions when Twitter is emerging as the preferred option. Understanding the attractors that typically haven’t changed for consumers is also critical; cash, cars, holidays still feature high on the list for many consumers at a time when brands are searching for what works. This report holds the key to some of the burning questions brands are asking today, and can help you avoid the pitfalls of implementing a bad retail sales promotion.
THE HEADLINE FINDINGS
FACEBOOK IS AN INCREASINGLY POPULAR WAY OF ENTERING COMPETITIONS
Last year 27% of respondents to our consumer survey said they use Facebook to enter competitions promoted by a brand either ‘very often’ or‘ sometimes ’. It is a platform that keeps growing in popularity - this year the figure has risen to over 37%, a rise of over 10%.
Many brands simply ask consumers to like or comment on a post to be in with a chance of winning a prize. But they could do more to get more bang for their buck when it comes to their promotional marketing. For example, in the US, The Chicago Bears run an ongoing contest asking fans to caption photos of players for a chance to win a Dunkin’ Donuts gift card. The posts encourage fan engagement, connect the social to the football game ‘experience’ and regularly attract between 400 and 1,000 comments.
This shift towards Facebook as a competition hub has been compounded by the fact that people are less averse to seeing competitions on the platform.
In 2016, 20% of people told us they found them ‘annoying and intrusive’, but this dropped to 17% in 2017. What 2018 will bring will certainly be interesting thanks to changes to the way Facebook presents advertising to its users.
“Social competitions have become part of the furniture of the social environment,” says Niall O’ Malley, founder of digital consultancy, Wraithfire. “It's a staple of the new marketing mix and consumers are becoming more and more comfortable with the mechanic. However, with this comfortable usage a new challenge has emerged - how can competitions stand out in an increasingly busy landscape?”
WOMEN ARE DRIVING THE POPULARITY OF SOCIAL MEDIA
It seems women are driving the trend towards entering promotions and competitions on social media. In 2016, the number of men and women who claimed to prefer taking part in brand promotions and competitions using social media such as Twitter and Facebook were almost equal at 9% and 7% respectively. 2017 saw that women have stolen a march, with 13% telling us that social media is their preferred channel, compared to just 8% of men.
When it comes to Facebook specifically, just over 40% of women say they enter competitions promoted by a brand through Facebook – this number has jumped over 10% compared to last year. Instagram has also risen in popularity, with over 15% of women telling us they enter competitions via the channel, 6% more than last year.
THERE HAS BEEN A SHIFT IN THE AVERAGE AUDIENCE AGE OF SOCIAL PLATFORMS
Using social for your brand promotions has some real benefits and some pretty big negatives, too; but regardless, it is a popular way of spreading the word about attractive brand competitions and promotions. However, there has been a shift in the platforms preferred by different age groups over the last 12 months.
For example, in 2017, Facebook was the most popular social media network for sharing news of competitions and promotions among 35-44 year olds (31%), but last year it was 25-34 year olds who most commonly flocked to Facebook to share their excitement.
2016 also saw 35-44 year olds favouring Twitter (6%) for telling friends and family about competitions and promotions, while this year Twitter proved to be the most popular platform among 18-24 year olds (12.2%). Instagram was a hit among 25-34 year olds (3%) last year, while this year 35-44 year olds are the group most frequently using the platform to broadcast such opportunities. This upward trend isn’t expected to slow down any time soon.
SOCIAL MEDIA USERS ARE GETTING OLDER
As Niall O’Malley, founder of digital consultancy, Wraithfire says, “Generally, social media users are getting older, but the big exception to this is Twitter. Recent seismic political events like the US election have played out over Twitter - attracting a swathe of young, vocal users. Twitter is in a state of flux at the moment, so it ’ll be interesting to see if this trend continues.”
FACEBOOK WAS THE MOST POPULAR SOCIAL MEDIA NETWORK FOR SHARING NEWS OF COMPETITIONS AND PROMOTIONS AMONG 35-44 YEAR OLDS (31%)
HOW DO YOU TYPICALLY PREFER TO TELL FRIENDS AND FAMILY MEMBERS ABOUT PRODUCT PROMOTIONS OR COMPETITIONS?
INSTAGRAM IS NO LONGER THE PRESERVE OF THE CAPITAL
No longer are Londoners leading the way by using Instagram to enter competitions (15% said they used it for this purpose last year). This year it is the people of Yorkshire and Humberside who have embraced the platform, with one in five saying they enter competitions via Instagram.
Instagram's own figures this year also show a fairly even split between urban (39%), suburban (28%) and rural (31%) users, suggesting it is no longer just hipsters from Shoreditch who are getting creative…
MONEY OFF NEXT PURCHASE GROWS EVER MORE ATTRACTIVE
Over 50% of people told us that receiving money off their next purchase was the most attractive instant win promotion. This number has edged up slightly from 2016, when 47% cited this as their favoured way to be rewarded on the spot. This is no doubt being driven by the discount culture which is now shaping the sales promotions industry.
It is six to seven times more expensive to attract a new customer than it is to retain an existing one (source: ThinkJar). The money off next purchase mechanism taps into this truth, encouraging shoppers to become brand loyal and removing barriers to purchase.
2017 SAW THE PEOPLE OF YORKSHIRE AND HUMBERSIDE EMBRACING THE PLATFORM, WITH ONE IN FIVE SAYING THEY ENTER COMPETITIONS VIA INSTAGRAM.
Do you ever enter competitions promoted by a brand through Instagram?
50% OF PEOPLE TOLD US THAT RECEIVING MONEY OFF THEIR NEXT PURCHASE WAS THE MOST ATTRACTIVE INSTANT WIN PROMOTION
IN GENERAL, WHICH TYPE OF INSTANT WIN PROMOTIONS (WHERE YOU HAVE THE OPPORTUNITY TO GET A REWARD IMMEDIATELY), DO YOU TYPICALLY / WOULD YOU FIND THE MOST APPEALING?
PARENTS ARE MORE INCLINED TO SPREAD THE WORD
When asked if they ever tell friends and family members about product sales promotions or competitions they’ve entered, only 6% of parents said they did last year, compared to 5% of non-parents.
Yet, it seems parents have become more avid sharers; with 12% telling us that the spread the word to others in 2017, compared to just 6% of non-parents during the same year.
FRESH FOOD HAS GAINED A YOUNGER APPEAL
When participating in sales promotions and competitions for specific product categories, fresh food proved most popular among the over 55s last year (26%). 2017 has seen a significant shift, with fresh food promotions crying out to 25-34 year olds (28%).
Food brands are ahead of the curve when it comes to using experiential promotions to boost sales; encouraged by millennials who seemingly have a passion for healthy living, which perhaps explains their growing interest in fresh food. Last year PwC reported that nearly half of 18-34 year olds had changed their eating habits towards a healthier diet - compared to just 23% of people aged over 55.
Chris Baldwin, Director of Consumer Promotions and Loyalty at Sodexo drills further down into this finding. “Brands recognise health as a key driver for younger women in particular. As a result, they often feature zero sugar or low-fat products in their promotions in an effort to target this audience.”
2017 A SIGNIFICANT SHIFT, WITH FRESH FOOD PROMOTIONS CRYING OUT TO 25-34 YEAR OLDS (28%).
WE ASKED PEOPLE WHAT SALES PROMOTIONS OR COMPETITIONS FROM WHICH OF THE FOLLOWING PRODUCT CATEGORIES IN A SUPERMARKET ARE YOU/ WOULD YOU BE MOST LIKELY TO PARTICIPATE IN?
CARS ATTRACT THE TOP EARNERS …
In 2016, those earning £ 50-60k (30%) said they were attracted to sales promotions and competitions within the automotive industry but this year the group most seduced by the chance to win a car - or something car related – proved most appealing to those earning over £ 80k (35%).
Pricey electric cars are particularly hot property. This summer alone, Scottish Power gave away a Nissan Leaf worth over £30k to one lucky winner, while express.co.uk offered readers the chance to win a Renault Zoe Dynamique, which retails at over £27k.
In 2017, THE GROUP MOST SEDUCED BY THE CHANCE TO WIN A CAR - OR SOMETHING CAR RELATED - PROVED MOST APPEALING TO THOSE EARNING OVER £80K (35%).
IN GENERAL, WHICH TYPE OF MAJOR HEADLINE COMPETITION PRIZES DO YOU/WOULD YOU FIND THE MOST APPEALING?
MEN ARE BECOMING MORE AWARE OF WHAT’S ON OFFER
Less than half of men said they were consciously aware of promotional messages and offers on product packaging when we asked them last year (44%). This year they have become more engaged, with over half (51%) of men telling us that they sometimes see promotions on packaging and can’t help but be curious…
MORE PEOPLE ARE WINNING PROMOTIONAL COMPETITIONS…
When we asked people if they had ever won anything when taking part in a brand's competition, nearly a quarter of respondents gleefully told us of their success last year.
2017 gave even greater cause for celebration, with happy winners nearly doubling from 25% to 43%. A hugely positive factor when we know people are using social media more and more – more winners, means more chances for winners to show off and encourage others to take a chance on taking part.
2017 HAS GIVEN EVEN GREATER CAUSE FOR CELEBRATION, WITH HAPPY WINNERS NEARLY DOUBLING FROM 25% TO 43%.
BRANDS NEED TO WORK HARDER TO MAKE ON-PACK CONSUMER PROMOTIONS RELEVANT
On-pack sales promotions are a proven method to drive people online; be it to a dedicated website or social page, plus they grab consumer's interest in a retail environment, too. In 2017, 33% of people said they are more likely to buy a particular product if it has an offer or promotion printed on the packaging. This figure has dropped slightly from 37% of respondents who were tempted into making such purchases in 2016, but there are a number of factors involved in this statistic.
“This figure could change significantly depending upon the category and type of shopper,” says Jonathan Jackson, Managing Partner at iPackaging, which advises organisations such as PepsiCo, ABF, Mars and Nestle on intelligent packaging. “Categories that discount 70% and above, like tea, bread and cheese, will likely influence purchase more if they have a promotion on pack.
Furthermore, making sure the promotion is relevant requires understanding who the target the demographic is. For instance, a promotion aimed at demographic that the brand wishes to reach, as opposed to their existing demographic, means the promotion will be less relevant to their current shopper. Therefore hitting 30% may be a good result if they’ve attracted new consumers from their target demographic.
“Our research shows seven distinct promotional segments which means relevance is vital both in terms of the mechanic and the actual incentive. If both are aligned with the target demographic it will make for a much more impactful promotion."
“Lastly, too many promotions do not stand out on pack. Designs are often too sympathetic to the brand and therefore lack the stand out for consumers to even notice the promotion.”
KEY POINTS:
■ Consumer promotions need to be closely tied in to the target audience’s demographic in order to resonate with the right consumers.
■ If promotions are quick and easy to enter (and understand) they will attract more consumers. Increasingly this means driving people online to a dedicated digital presence where they can enter with the touch of a few buttons on their smartphone.
■ Promotions need to stand out on pack – the louder and prouder the better.
33% OF PEOPLE SAID THEY ARE MORE LIKELY TO BUY A PARTICULAR PRODUCT
DOES THE BIG SCREEN HOLD EVEN BIGGER OPPORTUNITIES?
Last year 34% of people told us they would be more likely to buy a product if it was part of a free cinema tickets promotion, but this year the number had dipped to 29%. Yet cinema still has a bright future in brand promotions when it comes to rewarding consumers, with nearly one in five people claiming to have visited the cinema within the last three months.
"There is clearly a disconnect here,” says Paul Parry, Head of Filmology at Sodexo. “There are tonnes of ways to enjoy films these days that are slightly out of the ordinary, and brands need to recognise that consumers are looking for new and different experiences."
For example, look at the consumer trends behind cinema's success; event cinema, alternative content, VIP seats, or even the chance to see the film in a different way – maybe a midnight ‘spookfest' at Halloween, or a Christmas Eve festive marathon? Brands need to be smart about how they maximise the opportunities cinema offers to their audience, product and price point.
KEY POINTS:
■ Consumer promotion campaigns can stand out if they are tailored to a specific film or genre, or if they offer a personalised or VIP cinema experience…
■ There is a particular opportunity for brands looking to reach higher earners. Last year the group ‘much more likely’ to buy if it was part of a free cinema tickets promotion was those earning £70-80k (14%).
In 2017, cinema won the hearts of those earning over £80k (15%). But as Parry says, brands need to look carefully at the product and the price point to ensure it works. “We’ve seen high–value products offering high-value cinema rewards. So, cars with free Annual Cinema Passes that retail at over £200. Here, clearly two free tickets wasn’t going to entice a consumer to part with serious ‘car money’!”
WOMEN ARE LESS ENGAGED WITH PROMOTIONS WHILE IN-STORE
The number of women redeeming a coupon or entering a draw in store has dropped, from 24% in 2016, to 17% in 2017. This trend is expected to continue into 2018 and beyond, so it's important to think outside the traditional retail space and encourage women with their promotional campaigns via digital and social platforms, like Facebook.
“I wonder if shopping habits towards more shops per week across multiple retailers may be the cause?” says Jonathan Jackson, Managing Partner at iPackaging. “This fragmentation means shoppers are probably not thinking about coupons or entering a draw in store as much as they did.”
The proliferation of supermarkets means consumers are certainly spoilt for choice. According to research from retail marketing agency TCC Global in February 2017, shoppers have access to five ‘very easily reachable ’ stores on average, as well as 10 ‘easily reachable ’ shops; it has never been easier to switch between retailers on a whim.
KEY POINTS:
■ There is a shift towards digital, and women are driving the trend to enter competitions and promotions via social media. Brands need to take an omni-channel view with promotions, and ensure they can be entered either in-store, via social or via the supermarket or brand web site.
■ The choice of supermarkets on offer, and in particular the growth in popularity of discount stores, may be encouraging consumers to flit between retailers. Brands may have to work harder to engage shoppers who are less habitual than they used to be.
45-54 YEAR OLDS TAKE A CHANCE ON A HIGH RETURN
When it comes to brand competitions, 45-54 year olds are most likely to be attracted by a prize or prizes with a high monetary value but low odds of winning. Last year the age group most happy to take a chance on a high return was the 18-24 year olds (19%), but this year it is the older generation (16%) who are drawn by the chance – however slim - to win a hefty sum of money.
The group most interested in having the odds in their favour – despite a prize with low monetary value - is 25-34 year olds (33%), while last year it was 35-44 year olds (25%).
KEY points:
■ A survey by PwC in January 2017 revealed that 45-54 year olds were the most pessimistic about their personal wealth in 2017, with 31% expecting to be worse off this year. Perhaps this is supported by their appetite to win a large sum of money or higher value prize, even if the chances of winning are low. Brands looking to appeal to this group can tap into this need for greater financial security.
■ The same PwC survey revealed that 31% of 25-34 year olds believed that their disposable income would increase in 2017, perhaps supporting their desire to win smaller amounts of money or lower value experiences for personal spending or pleasure rather than essentials.
45-54 YEAR OLDS WERE the most PESSIMISTIC ABOUT THEIR PERSONAL WEALTH IN 2017
IF A BRAND WAS RUNNING A COMPETITION THAT YOU COULD ENTER WHEN BUYING A PARTICULAR PRODUCT, WHICH OF THE FOLLOWING TYPES OF PRIZE/ODDS OF WINNING DO YOU THINK WOULD MAKE YOU MOST LIKELY TO BUY THE PRODUCT AND ENTER THE COMPETITION?
MILLENNIALS WOULD LOVE A DREAM HOLIDAY …
When it comes to major headline competition prizes and promotions, what do millennials really want? A dream holiday or luxury trip proved most appealing to the 25-34 year old millennial segment (17%), supporting the well-documented belief that experiences trump material things for the majority of this generation.
More specifically, when asked what type of travel prize they would prefer, 25-34 year olds remain most attracted by an exotic all expenses paid beach holiday (22%), something which also proved most popular among this age group last year…
This aspiration is supported by the fact that the ‘dream holiday or luxury trip’ was most attractive to those earning £ 25-30k (15%) in 2017 – a bracket likely to include a large chunk of millennials - a departure from 2016 when it held the most allure for those earning £70-80k (21%).
“Millennials' appetite for experiences is inextricably linked to the ubiquity of social media,” says Chris Baldwin, Director of Consumer Promotions and Loyalty at Sodexo.
“This generation want to share everything on social platforms, and experiences such as exotic holidays are very visual, lending themselves perfectly to that. One of our clients is running a pan-European campaign targeted at 18-35 year olds, offering consumers the chance to win experiences if they snap themselves with the brand's product. It is a great example of companies capitalising on this trend for showing off on social.”
KEY point:
■ Brands looking to engage 25-34 year olds can tap into this need to dream about the exotic, the extraordinary, the memorable. They are looking for something colourful that will capture their imaginations and offer true escapism. Tying this in with the visual and viral nature of social media too, can really deliver.
YOUNGSTERS PREFER MOBILE TEXT FOR MONEY VOUCHERS
Last year, 18-24 year olds told us that email was their preferred way to receive a ‘money off your next purchase’ voucher from a retailer or brand, and this year the same holds true. But there has also been a noticeable - and unexpected – jump in the popularity of on-pack coupons among this age group, rising from 19% to 24% this year. This young audience is nothing if not unpredictable….
KEY POINT:
■ Brands must avoid using digital for the sake of it. Digital channels enable brands to add value to sales and consumer promotions through personalisation and interactivity, for example. But well-targeted on-pack promotions such as ‘money off your next purchase’ will often benefit from immediacy and simplicity - meeting young people’s well documented demand for instant gratification.
DOES NORTHERN IRELAND HOLD UNTAPPED POTENTIAL?
While last year the East Midlands were the unluckiest in competitions, with 80% of people confiding that they had never won anything, this year it was Northern Ireland, with 76% of people telling us they had never been lucky. Are brands missing a trick by not bringing some joy to this audience?
KEY POINT:
■ Many UK sales promotions exclude Northern Ireland, largely as a result of the Gambling Act 2005, which still requires any Northern Ireland promotion to include a No Purchase Necessary (NPN) route to entry – something which is no longer required in the UK. Brands should consider including Northern Ireland in promotions by setting up an NPN route for Northern Ireland only, enabling them to reach this ripe but forgotten audience.
TWITTER AND INSTAGRAM ARE ALSO PLAYING A GROWING ROLE
In 2017, over 20% of people told us that they enter competitions via Twitter, up from less than 15% last year. Instagram also saw a jump, with over 14% of people saying that they used this platform to enter competitions – a growth of nearly 5%.
Expedia is one company that frequently holds competitions for its Instagram and Twitter followers. For example, its Travel Yourself Interesting campaign identified what it deemed to be the UK ’s ‘most boring ’ tweets and sent these to exotic locations around the world where production teams filmed a more interesting version. Within minutes these short, branded films were tweeted back to the originator to share.
Expedia ’s Twitter followers increased by 40% as a result of the campaign. “Twitter has been trying really hard to evolve its offering over the last couple of years, so it's no surprise that their audience is responding with more engagement, ” says Niall O'Malley, of Wraithfire.
“The extension to 280 characters might make it easier to communicate Terms and Conditions to contestants (at the moment brands host these on their site). More characters means brands can be more explanatory about what is involved to avoid any misunderstanding.”
This last point is very poignant given that more than one in five people shamefully admitted to us that they never read the Terms and Conditions of competitions or promotions…
KEY POINTs:
■ Instagram lends itself well to high impact visual campaigns that tap into the huge consumer appetite for taking and sharing photos. Using this as a quick and easy means of entry encourages entrants to engage.
■ Twitter’s recent extension from 140 characters per tweet to 280 gives brands an opportunity to better communicate the Terms and Conditions of competitions and promotions on the platform, minimising the risk of misunderstanding.
THIS YEAR, OVER 20% OF PEOPLE TOLD US THAT THEY ENTER COMPETITIONS VIA TWITTER, UP FROM LESS THAN 15% LAST YEAR.
DO YOU EVER ENTER COMPETITIONS PROMOTED BY A BRAND THROUGH TWITTER?
HIGH EARNERS ARE ATTRACTED TO BIG CASH PRIZES WITH LOW ODDS
In 2016, the group most attracted to buying a product with the chance to win a high monetary prize despite low odds of winning, was those earning £ 25k-30k (14%). In 2017, it was the high earners who are most keen to pit their wits against the odds, with those earning £ 60k-70k (29%) coming out top, closely followed by those on salaries of £ 70-80k (25%).
KEY POINT:
■ Luxury brands looking to engage high earners can tap into this appetite to win a potentially life changing amount of money against the odds, focusing on offering fewer, high value cash prizes that can reinforce the perception of exclusivity.
THE RICH ARE GETTING RICHER…
Perhaps those in high salaried jobs achieved their status, in part, by taking risks and challenging odds, hence their success rate when entering brand competitions. Those earning £70-80k continue to win more than anyone else (36% last year and 75% this year), suggesting the rich are getting richer… but you have to be in it to win it.
“It's interesting to see that high earners are proving more successful in promotions and competitions than those in other salary brackets,” says Chris Baldwin, Director of Consumer Promotions and Loyalty at Sodexo. “Perhaps having tasted success within their professional lives they have a greater appetite for the thrill of winning and being rewarded, hence their penchant for promotions.”
KEY POINT:
■ This finding suggests that high earners are a very receptive audience to competitions and sales promotions, presenting an opportunity for luxury or high-end brands looking to reach this group of consumers.
10 ways for brands to get it right
1
Keep your finger on the pulse
Audiences are continually shifting from one social media platform to another so get hold of up to date research to verify who is using what – and how.
2
Think beyond the platform
Consumers might be increasingly comfortable entering brand promotions and competitions via Facebook, but brand marketing still has to stand out on Facebook and engage people in an increasingly crowded space.
3
Make it viral
Consumers are naturally using social media to spread the word about their favourite promotions and competitions, so brands need to be all over Facebook and social platforms to enhance their general audience appeal. Make it easy – and attractive - for people to share. Getting your consumers directly involved in you promotions creates real impact, and making it viral can be a key factor in this.
4
Keep it simple
Digital offers almost limitless scope for creativity and sophistication, but don’t neglect age-old mechanisms such as ‘money off your next purchase’. These remain hugely popular and will continue to deliver on specific objectives.
5
Be creative
On pack promotions may have lost their edge slightly. Keep the customer front of mind when creating the messaging, tone and imagery to stand out in a crowded space. Think outside the box.
6
Unleash the power of cinema
It continues to have a strong and enduring appeal, yet the big screen is perhaps not packing as much punch when it comes to promotions. Be smart about tailoring cinema experiences to your audience and making them
7
stand out
Take an omni-channel view: Increasing numbers of consumers shop online, and many also visit more than one supermarket for their weekly shop. Keep pace by ensuring promotions can be entered online and offline, and don’t rely on shoppers being predictable.
8
Allow millennials to dream
Build an experience which is inspiring, unique, exotic – and visual – tapping into this audience’s love of sharing their ‘wow’ moments on social media.
9
Get the size of the carrot right
Different audiences respond to different incentives, with younger people perhaps more attracted to better odds and more mature people happy to take a gamble. Pitch the incentive correctly to incite maximum excitement.
10
Never assume
As technology continues to quickly advance, urban digital natives don’t have a monopoly on specific devices or platforms for long; instead, they swiftly enter the mainstream. Be sure to keep on top of changing consumer habits and how your promotions can influence consumer behaviours. Case in point: until her recent death, the oldest person on Twitter was 104 years old…
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