{"id":299,"date":"2025-05-01T11:39:15","date_gmt":"2025-05-01T11:39:15","guid":{"rendered":"https:\/\/calexis.com\/?p=299"},"modified":"2025-11-14T19:37:15","modified_gmt":"2025-11-14T19:37:15","slug":"you-think-its-a-contest-we-think-its-a-coupon-drop","status":"publish","type":"post","link":"https:\/\/calexis.com\/index.php\/2025\/05\/01\/you-think-its-a-contest-we-think-its-a-coupon-drop\/","title":{"rendered":"You Think It\u2019s a Contest; We Think It\u2019s a Coupon Drop"},"content":{"rendered":"\n

Everyone gets excited by a big retail contest: there are prizes to be won, discounts to be won, a game to be played.  But while consumers consider this kind of promotion to be like a lottery with millions to win, marketers see the event as a massive coupon drop.<\/p>\n\n\n\n

When you consider that the majority of the prizing is in bounce back coupons and food prizes, you understand why marketers feel this way.<\/p>\n\n\n\n

We have helped many of these \u201ccontests\u201d be successful and they are great promotions. <\/p>\n\n\n\n

\"\"
Yahoo! We won!!<\/figcaption><\/figure><\/div>\n\n\n\n

The coupon prizes amount to the greatest contribution to the \u201cmillions of dollars in prizes\u201d in the pool.  While they may be seen as prizes, they are merely disguised bounce back coupons \u2013 designed to get customers to come back for further purchases. <\/p>\n\n\n\n

These are food wins such as \u201cfree fries with sandwich purchase,\u201d or \u201cFree Coffee\u201d (as our sample shows) or discount wins \u201c20% your next purchase.\u201d  Normally marketers would have to pay to deliver these to customers, but with a contest, we hope, customers will come running to get them.<\/p>\n\n\n\n

Successful contests provide a catalyst to get customers and staff involved and amped up in the mayhem.\u00a0 The customer is playing for a few grand prizes like automobiles or vacations.\u00a0 But these are really draws to get those coupons out there.\u00a0 <\/p>\n\n\n\n

The big lure \u2013 Over a million dollars in prizes to be won!<\/em> Of which half is coupons for return visits.<\/p>\n\n\n\n

A good contest design has a nice balance of real prizes and coupons.  When McDonalds or Tim Hortons started their evergreen contests (Monopoly and Roll Up the Rim), there were more prizes and less reliance on coupons.  Once the contest has its own legs, it doesn\u2019t need to be stoked with as many real prizes.<\/p>\n\n\n\n

Prizing is often sourced by leveraging the advertising value of the contest.  For example, we have negotiated with car companies to get free or under priced vehicles in exchange for the million dollars in advertising value they will get.  Believe it or not, manufacturers have formulas for such exchanges.<\/p>\n\n\n\n

The cost of the food giveaways can also be sourced in part by a restaurant chain\u2019s suppliers \u2013 beverage companies and fries, etc.  And we love it when we can amortize the value of the \u201cprize\u201d over future purchases.<\/p>\n\n\n\n

So when you buy a meal deal and get a free drink, you are pretty much covering the cost of food, labour and some profit despite thinking you are getting something for free.<\/p>\n","protected":false},"excerpt":{"rendered":"

Everyone gets excited by a big retail contest: there are prizes to be won, discounts to be won, a game to be played.  But while consumers consider this kind of promotion to be like a lottery with millions to win, marketers see the event as a massive coupon drop. 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