DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Rewards More Effective Than Competitions When Choosing On-Pack Promotions, Study Finds

By Steve Wynne-Jones
Share this article
Rewards More Effective Than Competitions When Choosing On-Pack Promotions, Study Finds

On-pack promotions that offer rewards are more effective than competitions, a study has found.

Promotions firm Hive undertook analysis of the types of on-pack promotions available in three UK supermarket chains, and it found that competitions, a popular choice of mechanism when it comes to customer engagement, outnumber rewards by three to one.

However, it found that rewards-based promotions can have as high as a 23% response rate, compared to a 1% response rate for competition-based promotions.

“Brewer Charles Wells is a prime example of the value of a reward mechanism," said Jonathan Jackson, CEO of Hive. "It used a cash-back offer that paid £5 by cash transfer into a beneficiary’s bank account. By the end of the promotion, Charles Wells had a redemption rate of 23%, compared to an industry standard of around 1% for competition-led on-pack promotions.”

Hive also found that 87% of promotions in FMCG now require proof of purchase, and about half achieve this through unique codes printed on pack.

© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.

ADVERTISEMENT
Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.