SOMETIMES IT’S GOOD
TO TAKE A RISK

So you and your marketing department have a great plan for a promotion that could cause your products to fly off the shelf, make your brand a household name, and send your profits soaring. There’s just one problem: what if too many consumers take advantage of your super idea, and you drain your budget trying to fulfill all of the redemptions?

Risk underwriting is a solution for promotions for which a redemption rate is difficult to predict. Although the term may sound intimidating, it’s essentially an insurance policy used to “fix” the cost of a promotion. The result is that there are no expensive surprises if the redemption is unusually large, which is something you can count on in today’s uncertain economic times. The cost of underwriting is built into the price per product, making the overall cost for the promotion predictable and sustainable in a company’s bottom line.

“It’s the secret sauce to pricing digital products,” says Barry Schaffer, president of Promotional Currency. “We work closely with SCA Promotions, the largest underwriter in the world and the best in the business. Together, we keep it uncomplicated for our clients.”

A timely example of the advantage of using risk underwriting for a promotion is Sara Lee’s free loaf of bread giveaway last year, when over 22 million FSIs (free-standing inserts) found their way into homes nationwide. A normal redemption for this type of promotion is 1 – 3%; but with consumers’ mindsets being altered by our changed economy, this redemption was an amazing 8% (that’s a lot of bread). Because Promotional Currency worked with Sara Lee and SCA for risk underwriting, the unexpected redemption was kept in check at the smaller amount, preset before the promotion started. Sara Lee moved forward, enjoying the success of the promotion without a negative impact on their marketing budget.

THERE’S NO “RISK” IN BLOGGING…OR IS THERE?

Learn even more about risk underwriting for promotions by visiting the blog Risky Business, written by promotions expert Steve Dersch.

Says Barry, “We’re pleased to feature Steve’s blog as a tool that easily explains the benefits of risk underwriting and the positive role that a successful promotion can play in growing a company.”

Steve’s purpose is to create an environment that explains risk underwriting and contingent promotions for a layman who says I don’t understand it, but I know I need it. “Long term,” he says, “I’d like to see the blog become an online forum, where companies and brands from a variety of industries can engage in discussions on promotions in general: what’s effective, what didn’t work well, what to look for in the marketplace.”

From insight on music promotions, successful branding, coupons and all things digital, subscribe and look forward to Steve’s updates at http://promotionalrisk.blogspot.com/. 

Promotion Spotlight:
Chaps’ Music Wears Beautifully

Looking fabulous never sounded so good as when a stylish clothing manufacturer gives you a free music download card for purchasing cool clothes. Chaps, licensed by the Polo Ralph Lauren Corporation, is nationally recognized for featuring unique, American-style fashion wear and accessories. Chaps looks to amp up brand awareness by co-branding with music powerhouse Billboard for a yearlong promotion.

The Chaps incentive is fashionably simple. After purchasing any Chaps brand clothing or home item from participating Belk department stores, customers instantly receive a gift card for 10 free music downloads through Billboard’s online music store as a free gift with purchase. The free music with purchase offer runs from June 1, 2009 to May 31, 2010.
 

Survey Says...

Take lead generation to the next level by adding an online survey to your next digital promotion. Survey forms are the perfect marketing tool because they prompt visitors to provide vital information such as name, age, email and zip code in exchange for free downloads (everyone wins!). The beauty of incorporating a survey into your promotion lies in the fact that it’s a relatively simple way to collect valuable data. You can generate feedback by learning your customer’s preferences or personalize your campaign by gathering contact information. The value of the download, or number of free songs, determines the number of questions on a survey. The rule of thumb is that one download is usually equal to 2 questions. You can even customize your survey by applying graphics, colors and logos pertaining to your product. Want to learn more about incorporating surveys into your promotion? Contact us today at 888-701-3873.

Promotional Currency specializes in the development of customized, turnkey digital entertainment promotions for brands and retailers.

Promotional Currency is the Exclusive U.S. Digital Promotions Partner for:

a leading North American digital music provider that specializes in digital music promotions

a leading mobile entertainment media company 

We Offer:

• Solutions for U.S. and Canada
• Digital Music Promotions
• Mobile Content Promotions
• PC Games Promotions
• Online Instant Win Games
• Entertainment Licensing
• Promotional Risk Coverage
• Customized, Turnkey Solutions
• Spanish Language Promotions

For more information call:

888-701-3873

Email: info@promotionalcurrency.com

Visit: www.promotionalcurrency.com