According to our analysis, consumers were engaging with on-pack promotions in record numbers during the first lockdown.
We saw redemption rates rocket from April 2020 with increases of up to 380% compared to the previous year for the same campaign.
We looked at four separate on-pack promotions that have been run more than once, with the last version in each case being re-run during lockdown. All four showed significant increases in redemption rates irrespective of being in different categories – alcohol, food and mobile.
Same on-pack promotion compared year-by-year
Alcohol : Interestingly, both of the alcohol campaigns in the table above were offering headline prizes of holidays abroad – something you may have expected to cause apprehension during a time of flight restrictions. Yet both showed huge increases in redemption rates during lockdown. The biggest increase seen, at a staggering 380% up on the previous year, was an on-pack promotion that required entry via SMS rather than the more traditional online entry.
Food : The on-pack in the food category gave consumers the chance to win 1 of 1000 personalised garden gifts. With the same creative running over 3 years, it is interesting to see the that response rates were very similar for 2018 and 2019. Yet saw a 60% increase in 2020.
Mobile: This mobile provider runs gift-with-purchase promotions up to 5 times a year and usually sees little fluctuation in redemption rates. However their last promotion that ran in April/May achieved an astounding 55% increase with gifts of a similar value/nature.
Why are we seeing these extraordinary results?
The pace of life slowed down for many consumers during lockdown. They could dedicate time to quality engagement with the products they purchased. They had time to read the back of their cereal box whilst they enjoy a leisurely breakfast. Or go online to enter a competition during their working day. Or peruse a neck collar from a bottle of wine they’d just opened. For brands wanting to capture consumer’s attention, this was great news!
Why we think this upwards trend will continue
With companies like Twitter and Facebook leading the revolution for a future where remote working is the new normal… and with a recession looming and consumers already penny-pinching… on-pack promotions certainly look to be a promising and sensible staple in the marketing mix.
What’s in it for you?
Time-rich consumers who are actively engaging with prize/incentive led campaigns, really is an opportunity not to be missed. Whether your aim is acquisition, increasing loyalty, sales uplift, or growing your database… then now’s the time. Give us a call.