1、20182018 Prizing Report Nine Insights for a Solid Prizing Strategy 2018, HelloWorld, Inc. HelloWorld, Inc. / 2018 Prizing Report2 METHODOLOGY We originally polled consumers in 2016 to determine what prizes motivated them most. We found that bigger prizes arent always better and, when it comes to par
2、ticipation, high odds of winning a prize motivate consumers more than the size or value of the prize. As our world becomes increasingly digital and new technologies enter the market - and consumers daily lives - weve decided to take another look at how consumers approach promotions and rewards. We c
3、ollected 1,100 responses in a new 2018 independent survey to update our understanding of the value of prizing and support our industry expertise. INTRODUCTION The challenge to convert consumers is greater than ever. Between traditional advertising, email blasts, text messaging, and various social me
4、dia outlets, consumers are inundated with endless communications from brands. As a result, it has become more difficult to capture consumers attention or make meaningful connections that convert casual shoppers into brand advocates. In looking to do so, the correct promotion strategy with an effecti
5、ve prizing mix can help meet those objectives. HelloWorlds 2018 Prizing Report found out what motivates consumers most and the takeaways are clear: When it comes to promotional or loyalty programs, brands that embrace simplicity, focus on value, and build relationships with customers will have the b
6、iggest impact. 49% The participants represented a broad age group of 18 to 60+, and 49% of them were aged 18 to 44. 67% Over 67% surveyed indicated that they participate in promotions at least once a month. 3HelloWorld, Inc. / 2018 Prizing Report Share content/photo with your social network Consumer
7、s appreciate ease and authenticity, so dont overthink your promotion experience. Make opting in hassle free. And when it comes to prizes, theres no need to reinvent the wheel or splurge on rewards with a hefty price tag to capture consumer attention. We suspected that consumers would be willing to p
8、rovide an email address, watch a video, and even use their phones in store; however, we were surprised that 84% of consumers are willing to leave a product or brand review in exchange for a reward. This shows us that consumers want to be heard, even if it takes a little effort. Consider where in the
9、 promotional experience it might be relevant to provide a way for consumers to share their opinion about your brand or products. MAKE IT EFFORTLESS Low-effort initiatives work well, as consumers across the board are busier than ever and value their privacy. Both men and women are equally willing to
10、watch a brand video, leave a review, or provide their email address to enter a sweepstakes. However, when participation takes more effort (visiting a retail location or enrolling in a loyalty program) or seems to make a personal statement (sharing with social media), interest among consumers can wan
11、e a bit. Keep It Simple 80% Provide an email address 27% Enroll in a loyalty program 53% Use mobile in store (text, scan product, enter code) 63% Watch a brand video 83% Review a brand/product 84% Visit physical location or event 40% Upload a photo of a receipt from your purchase 69% SURVEY QUESTION
12、 Which would you be most likely to do to win a reward? - HelloWorld Prizing Report, November 2018 4HelloWorld, Inc. / 2018 Prizing Report STICK WITH CLASSIC PRIZES Traditional prizes like vacations (70%), shopping sprees (62%), and a lifetime supply of their favorite brand (41%) are still the most e
13、nticing grand prizes. Less conventional options attendance at an exclusive event, the chance to become a brands beta tester, or the chance to appear in a commercial were the least popular rewards. According to the data, its best to keep prizes simple in most cases. Remember this and stick to traditi
14、onal prizes that appeal to everyone. DONT BREAK THE BANK Consumers appreciate almost any display of generosity. Similar to findings in our 2016 report, the likelihood of participation increases only slightly when consumers are offered a $250,000 prize, compared to a $10,000 prize. Whats more, when t
15、he option rises to $1,000,000, incremental interest in participating is negligible. Remember that bigger isnt much better and you dont have to max out your prize budget to motivate consumers. Comparing a $10,000 prize to a $1,000,000 prize: Is the marginal increase in participation worth 100 times t
16、he cost to you? Unless your goal is to make a big PR splash, probably not. SURVEY QUESTION If you found out you won a large value prize, which of these would be most appealing? TOP FOUR PRIZES -VS- WOMENMEN 11 22 3 34 4 ACTUAL WINNER “The trip was WONDERFUL. I love Italy. Ready to go back. We made i
17、t to Florence, Siena, Luca, and Cinque Terre. The hotel was a real castle from the 12th century. It was a trip of a lifetime for me. Thanks again for all your help and patience.” Winner of a CPG client promotion Kitchen Makeover Vacation Home Technology Upgrade Shopping Spree Lifetime Supply of Favo
18、rite Brand - HelloWorld Prizing Report, November 2018 5HelloWorld, Inc. / 2018 Prizing Report CONSUMERS CRAVE CONVENIENCE When asked what they would rather win, 64% of consumers chose a reward that makes their day-to-day lives easier, such as a grocery store gift card or housekeeping service, over a
19、 reward that makes them feel special, like a massage. This response was consistent across age groups, demonstrating that value has evolved for all consumers to encompass the things that save them both money and time. No one is immune to this, as all income levels, even high income respondents, would
20、 rather win something that makes their lives easier over something that makes them feel special. SURVEY QUESTION Which type of prize would you rather win? Makes life easierMakes you feel special ACTUAL WINNER “I am just in tears of happiness. THANK YOU FROM THE BOTTOM OF MY HEART! The $250 visa gift
21、 card I spent at the grocery store to fill up the kitchen cabinets and freezer with so much needed food! The joy in my heart is over whelming of Thanksgiving! The blessing is beyond measure! Thank you, thank you!” - Winner of a CPG client promotion 68% 32% 59% 41% 64% 36% Low Income up to $49,999 Mi
22、ddle Income $50,000 to $124,999 High Income $125,000 and up Align On Value Todays consumers are busier than ever. As a result, they have come to define “value” as anything that enhances how they navigate their busy lives. Brands should consider prizes that meet a clear need and are simple to redeem.
23、 - HelloWorld Prizing Report, November 2018 6HelloWorld, Inc. / 2018 Prizing Report FLEXIBILITY GOES A LONG WAY In addition to convenience, todays consumers value and yearn for choice. When asked how theyd most prefer to receive a $500 prize, consumers were most interested in the versatility of a Vi
24、sa gift card or an Amazon gift card. Brands should prioritize accessible and flexible rewards that are easy to redeem. KNOW YOUR DEMOGRAPHIC Value and perceived value can vary among different demographic groups. As we learned earlier, consumers would rather win something for themselves than win some
25、thing that “helps” the brand (running the brands social media, participating in a commercial, or being a beta-tester, for instance). However, as you put together your prizing strategy, there might be some exceptions based on your target market: 4 If youve run a campaign to beef up brand advocacy, yo
26、u would have some influencers who would be very interested in appearing in your commercials or running your social media accounts. 4 Even though a home technology upgrade was middle of the pack when it came to prize preferences, if your demographic is mainly digitally savvy millennials, it would per
27、form better. 4 If you know your target market contains a lot of early adopters, youd get better participation results for a beta tester prize. 4 Bottom line: If you dont want to stick with traditional prizes that appeal to everyone, closely examine your target market to come up with a more specific
28、prizing strategy. While a Visa gift card was the overall top choice, brands should keep in mind that Venmo balance and mobile wallet deposit options are on the rise among younger generations. SURVEY QUESTION If you won a prize valued at $500, how would you prefer to receive it? Visa Gift CardAmazon
29、Gift CardStore Gift CardMobile Wallet DepositPayPal or Venmo Credit Age 18 to 29 34% 9% 23% 22% 11% Age 30 to 44 52% 6%12% 19% 11% Age 45 to 60 67% 4% 7% 8% 14% Age 61+ 63% 5%5% 8% 19% - HelloWorld Prizing Report, November 2018 7HelloWorld, Inc. / 2018 Prizing Report The key is to build a dynamic an
30、d lasting relationship with consumers. They want to feel appreciated and know the brand understands their preferences. Instant wins and daily prizes prove that time spent with your brand is worthwhile, but these experiences need to be supported by larger prizes that are tailored to consumers specifi
31、c wants and needs. PATIENCE IS NOT NECESSARILY A VIRTUE In 2016, there was a greater divide between consumers who would rather receive a $50 reward immediately (35%) and those who would rather wait four to six weeks to receive a $75 reward (65%). However, the split between those who want a smaller r
32、eward now (46%) and those who will wait for a larger reward (54%) is shrinking. In todays increasingly digital world where instant gratification is the norm, consumers expect immediacy and want to feel acknowledged and rewarded in real time. SURVEY QUESTION Which would you rather win? Win $50 nowWin
33、 $75 in 4 to 6 weeks 2018 2016 35% 65% 46% 54% Relationships & Personalization Matter ACTUAL WINNER “The winnings allowed me to pay off my student debt. I am very grateful for the great impact on my financial life. The companys tools to financially empower me are unparalleled.” Winner of a finance c
34、lient promotion - HelloWorld Prizing Report, November 2018 8HelloWorld, Inc. / 2018 Prizing Report READ THE ROOM Consumer age must be taken into account when figuring out your prizing or reward strategy. A majority of millennials (65%) find a guaranteed $5 reward more appealing than the chance to wi
35、n $10,000, indicating that they would rather receive something small over nothing at all. This split is closer to 50/50 for older generations who, generally speaking, dont crave the same degree of immediacy as millennials and remain motivated by chances to win. In fact, respondents aged 60+ would ra
36、ther have the chance to win big (60%) over a guaranteed smaller reward. Brands must consider who is in their audience before designing a winning prize strategy tailor- made for their consumer base. A NEW DAY IS A NEW CHANCE TO WIN We asked consumers which reward structures they found most appealing
37、and 37% of respondents chose the chance to win both daily prizes and a large grand prize. Personalization also reared its head, as 28% of consumers want the option to choose their own grand prize. While large prizes remain enticing, consumers also appreciate personalization, as well as the chance to
38、 be rewarded early and often to validate their participation and interest in a brand. To help build your relationship with your consumers, find ways to communicate value and drive fresh excitement each day. SURVEY QUESTION Which of these is most appealing to you? A small reward each time you interac
39、t with the brand (loyalty points, etc.) 18% Chance to win thousands of smaller prizes each day 12% Chance to win a choice of several grand prizes (all similar value) 28% Chance to win daily prizes and a large grand prize 37% Everyone gets a mystery offer 6% When it comes to prizing structures, consu
40、mers are pretty self-serving, as “everyone gets a mystery offer” is the least appealing prize. SURVEY QUESTION Which of these is more appealing? The chance to win $10,000A guaranteed small reward ($5 gift card) 60% 65% age 1829 age 3044 age 4560age 60 35% 45% 55%54% 46% 40% - HelloWorld Prizing Repo
41、rt, November 2018 - HelloWorld Prizing Report, November 2018 HelloWorld, Inc. / 2018 Prizing Report9 SUMMARY As you move forward with a prizing strategy for a new campaign, remember our key takeaways: Keep It Simple Include lower-effort experiences for your consumers, stick with classic prizes for g
42、eneral audiences, and remember that bigger isnt necessarily better when it comes to your grand prize. Align On Value Provide prizing that enhances how your consumers navigate their busy lives by knowing your demographic and offering convenient and flexible prizing that matches your target market. Re
43、lationships & Personalization Matter Build dynamic and lasting relationships with your consumers and know that while they expect immediacy, they also crave prizes and experiences that appeal specifically to them, their lives, and how they interact with your brand. HelloWorld, Inc. / 2018 Prizing Rep
44、ort10 HOW WE CAN HELP The HelloWorld experts are passionate about creating solutions with engaging prizing structures to help change the way you interact with your consumers. For questions about your prizing strategy or loyalty rewards structure, please contact us at: ABOUT HELLOWORLD HelloWorld, a
45、Merkle company, is a leader in loyalty solutions and promotional marketing, motivating and incentivizing consumer behavior through innovative prize opportunities, engaging online experiences, and exclusive rewards. We understand the impact the right prize can have on driving consumer engagement. Sin
46、ce 2016, we have fulfilled over 250 million prizes and were proud to administer four times more promotions than any other company year after year. Here are some of the great brands with which we work: With an army of in-house prizing experts from strategy to account management and from procurement t
47、o the winner experience team, we have an empirical view of what sparks interest with consumers. The importance of defining the right reward is absolutely vital and we fully understand the difference between giving away prizes and awarding “must have prizing” that truly motivates a consumer toward conversion.
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