Promotion marketing is an excellent tool for driving traffic and increasing sales. However, some companies who aren’t experts in promotion try to run such programs on their own, and experience unintended, negative consequences.
To increase sales, Gallery Furniture in Houston, TX ran a promotion borrowing sizzle from the most recent Super Bowl. However, the store owner is an expert in furniture - not in promotion marketing.
Gallery’s offer was a simple one: Purchase furniture totaling at least $6,000, and if the Seahawks won the game, the purchase price would be refunded. The Seahawks prevailed, and Gallery’s refund to customers skyrocketed to $7,000,000. Gallery’s mistakes included:
- Not considering the economics of the offer
- Not insuring the offer to protect against a financially harmful payout
- Running a potentially illegal promotion — offering a chance to win a prize based on a purchase is considered illegal gambling in most states, which could result in a significant fine to the promotion sponsor
Promosis helps our clients avoid such pitfalls —
- We draw on our decades of experience to develop direct response promotions that enhance a company’s brand.
- When appropriate, we take advantage of our relationship with one of the most highly-rated insurers in the world to obtain affordable insurance that permits the opportunity for offering huge prizes without costing millions of dollars.
- We keep pace with constantly evolving Federal, State, and local promotion laws and guidelines.
- To provide peace of mind, our program administration services include indemnification - or protection - in the event an issue arises as a result of the promotion implementation.
Want to drive sales to your business or consumer clients with a direct-response promotion? We can help you keep it motivating, legal and affordable. Just shoot us an email or give me a ring to get started.