An increasing number of marketers are using promotional currencies such as free movie tickets, music downloads, and high-value coupons to generate more sales, Web site visits, and brand awareness. Marketers can distribute promotional currencies via in-product packaging, advertising, or online. These types of promotions help marketers stand out over the competition.
What is Promotional Currency?
Promotional currency can best be described as a "themed cash replacement." It works
just like cash or as a cash discount on specified purchases. This currency can vary from
gift
cards, coupons, and rebates and can be exchanged for specific rewards such as music,
movies, and gas. One of the most popular is Movie Cash™, a universally accepted movie
ticket voucher.
Why use promotional currency in a promotion?
The key benefit is that unlike cash, where the entire amount will be spent, only a
percentage of promotional currency is redeemed. This allows you to create a much larger
promotion for the same budget. For example, you may distribute 100,000 certificates for
free movies found in-pack, but only a certain percentage of those will actually be
redeemed.
In addition, promotional currency allows you to study redemption patterns, track where
consumers purchase your product, and even learn which movie the consumer selected.
Can My Campaign Be Too Successful?
Promotional currency can be risky because the promotion could redeem over your
expectations. It is always unknown how many offers will actually be redeemed. The
more compelling the offer, the higher the risk of an over-redemption situation. If your
promotion is "too successful," it could blow your budget.
With SCA's over-redemption coverage, you pay a fixed fee that eliminates the risk of
excess redemptions. If an unexpected number of consumers redeem the offer, you're
protected with SCA. Your budget won't be blown.
For example, let's say that the estimated response rate for your campaign was 10%. After the campaign, the actual redemption was 19%. SCA's over-redemption coverage assumes the cost of the additional 9%.
Getting Started
SCA works with you to design a promotional currency program to fit your marketing
objectives and budget. You decide how to pay for the program - either by paying only for
the offers actually redeemed (you benefit from any slippage) or simply by paying a single
upfront, discounted price for a specified number of offers.
A program can be set up and implemented in one to two weeks. For more information,
contact SCA Promotions at 888-860-3700.