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Promogaming, or the art of revitalising promotional marketing

Chloé Gardent - Lucky Cart

By Chloé Gardent
Communication & Partnerships
On 10 June 2016

French marketing blog Marketing PGC has published an article on the advantages of Promogaming® and its utility in the saturated world of promotional marketing. With players in the world of e-commerce already won over, large retailers are now taking an interest in this tool that transforms shopper experience. With other innovative alternatives also on the test bench, promotional marketing 2.0 is now underway!

“From the retailer’s point of view, the investment remains the same, but to the customer the offer looks more attractive and tempting.”

Cyril Marchal, CEO of Lucky Cart

 

Initially posted on Marketing PCG, please find below the English version of the expert talk « Promogaming, or the art of revitalising promotional marketing ».

 

Promogaming, or the art of revitalising promotional marketing

Excessive use of promotional marketing campaigns has a number of adverse effects (see: Are promotional marketing campaigns of any real use?) :reduced margins, brand depreciation, price cutting rendered ordinary and commonplace, and the “habituation” effect.

In fact, consumers have become addicted to it all, especially on internet. One in three consumers systematically search for promotional codes before finalising the purchase of their online shopping basket contents. In essence, the problem is that the various types of offers are all the same: loyalty cards providing instant discounts, cash back rewards, vouchers to use against the next purchase, “buy two get one free” type offers, gift vouchers, etc.

20% MORE REVENUE THAN AN EQUIVALENT DISCOUNT

How can one successfully stand out from the crowd in the eyes of consumers who are already completely overwhelmed and inundated with all these offers? This is the challenge that Lucky Cart is rising to, with its endeavours to promote and grow Promogaming in Europe. With Promogaming, rather than being offered 10% off a shopping basket the customer is instead offered a 1-in-10 chance of winning the whole basket contents. From the retailer’s point of view, the investment remains the same, but to the customer the offer looks more attractive and tempting. “In the case of a shopping basket of 70 euros, 60% of consumers say they would prefer to have a 5% chance of winning the whole contents rather than a 5% discount,” as Cyril Marchal, founder and CEO of Lucky Cart, points out. “This mechanism enables you to make small discounts [10% and less] attractive,” he further explains. Lucky Cart, therefore, promises 20% more revenue than an equivalent discount of the classic kind. “Furthermore, the buying experience is transformed. Who specifically remembers placing an order when a 5% rebate is involved? If you win your whole order and don’t have to pay for it, however, you will remember the website where it happened.” When you take into account the fact that in 2015 the French spent 13.7 billion euros on the various games of chance provided by France’s national lottery operator (Loto, Euromillions, scratchcards, etc.), you can see that Promogaming definitely has a future ahead of it.

FIRST IT WAS E-COMMERCE, AND NOW LARGE RETAILERS ARE FOLLOWING SUIT

Having initially targeted the world of e-commerce, Lucky Cart is now focussing its attention on brick-and-mortar stores, large retailers in particular. Last April saw the organisation of the first ever campaign for French grocery chain Franprix, with 800 stores involved. By logging into the chain’s website after completing their in-store purchases, Franprix’s loyalty card-holding customers got the chance to win a reimbursement of the cost of their shopping, no matter what the total amount involved. French retailers Auchan and Leclerc, as well as other major brands, are likely to follow suit in the near future.

REWARD AS A DRIVER OF SALES

Other initiatives exist that are also seeking to breathe new life into promotional marketing. Ifeelgoods rewards customers with personalised gifts: a music track to download from iTunes, a voucher to use at Décathlon sports stores, a ticket to see a favourite singer in concert, and why not even a bouquet of flowers when ordering lingerie? The Shopkick app, in the United States, rewards visitors as soon as they enter stores and before they’ve even made any purchase at all. It’s an interesting system with the potential, for example, to boost the number of visitors to a shopping centre.

In short, there are plenty of reasons to believe that retailers are no longer going to be content to just send us brochures offering reduced prices on products we never purchase, or to hand out discount coupons and promotional codes left, right and centre.

Would you like to find out more?

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