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Umbrella seeing impact of changing consumer behaviour
Is your sales promotion safe from over-redemption?
It was once possible to deem a campaign safe from over-redemption by looking at historical results data.
But now, with an unpredictable economy… comes unpredictable purchasing behaviour.
It’s inevitable that as the purse strings get tighter, consumers will be drawn to those sales promotions that help them make their pounds stretch further.
Working across the whole spectrum of sales promotions, Umbrella are witnessing the impact of these changes on redemption levels on a weekly basis. And more and more, we're seeing examples of sales promotions exceeding all expectations. Often the ones you least expect…
Case study: John Smith’s shock redemptions levels
There was nothing particularly unusual about this promotion. It offered pub-goers a £1 bet voucher when they purchased a pint of John Smiths ale.
Once upon a time, this type of promotion could have been confidently forecast without the need for risk protection.
But luckily John Smiths agency Space, had discussed a fixed fee with us. This really paid off for them, as redemptions flooded in way beyond expectations. So they were able to sit happy in the knowledge that they weren’t forking out for anything over their budget. Read full case study...
How a fixed fee protects you
Sales promotion budgets have limits… and if your forecast underestimates redemption rates, then the result could be that you need to find tens of thousands of extra pounds from else where.
Remember it’s not only the additional rewards that need to be sourced and paid for, it’s also the additional cost of handling, fulfillment and delivery. The cost can be huge.
By taking out a fixed fee, your budget is protected. However high redemptions come in, you don’t pay anything additional to what you budgeted for.
Great peace of mind in an unpredictable market!