The football World Cup is a bandwagon that you might feel is nearly full. Toshiba have promised to refund the price of your TV if England win although there are certain conditions and the JVC I bought is excluded. There is a retail consortium offering £100 or more against any old TV offered in part exchange for a new one and Currys are promising £10 for every goal England score.
One would assume that giants such as these have worked out the likely cost of each promotion and have concluded the risk is worth it. I will not mention Hoover and their air-miles offer. Would you consider any of these a justifiable gamble for your company?
Although two offers are in essence bets, all three differ fundamentally from the other two and deciding which type would be best for a business your size should be quite easy.
After seeing England play I have to say that Toshiba’s promotion seems to be the least risky. But what are the odds? One large betting company is offering 13:2 against an England victory and still attracting customers. You might wonder if the risk of losing the entire value of all sales, including on-costs, might ruin your appreciation of the tournament. It would certainly make the final, if England get there, a real nail-biter.
It might appear that the costs are quantifiable but the big variable is the number of sets sold.
And how many goals will England score? This promotion has all the air of possible disaster. Would you want to be subject of a headline: Rampant Rooney Killed my Company? There is always the possibility of a goal-fest. Unlikely, but by no means impossible.
The retail consortium is offering a fixed deal: a minimum of £100 off new TVs by named manufacturers. Any increase in the offer is subject to the shop’s discretion. There is little risk attached. If the take-up is rather slow then the extra can be increased, and vice versa. One might also assume that there is a limit on stocks. Once they are exhausted then no more £100.
Which you should go for will depend on what your customers are like. Your email marketing software will tell you what their response is likely to be. Whilst the £100 is by far the safest, it is the dullest to the same degree. It is no good being safe if it doesn’t generate sales. But then your customers might well appreciate the safe, predictable type of offer.
The big companies can afford to take qualified risks. You can, with a little thought, offer a display figure better than Curry’s £10 and still retain control.
Perhaps unpredictable is what will excite your customers. You might want to ask for the time of the last England goal. They log on to your website, give their email address, and enter the time. Those who get it spot on are entered into a prize draw, and for more than £10.
Your email marketing software defines your customers. Use it to show the best way to go.