With sales down and the economy continuing to slow, brands and businesses are scrambling for innovative ways to connect with consumers and effectively promote their products.
Big discount coupons or free offers are a surefire way to spotlight a product and generate interest. But without fixing the cost and eliminating the risk should the promotion exceed expectations, it could also be a surefire way to break the bank. This is where promotional risk coverage comes into play.
“In today’s tough economy, a free offer on a staple product such as milk or eggs could have a redemption rate that is two or three times as high as it would have the same time last year,” notes Barry Schaffer, president of Promotional Currency. “If I’m a brand and have X amount of dollars to promote my product, it is critical that I underwrite the risk so I don’t blow my budget for the year should redemption come in much higher than expected.”
Along with incorporating risk coverage into its digital incentive product offerings, Promotional Currency helps businesses manage their risk on redemption-based promotions. By analyzing the odds of redemption and then placing the risk with an A+ insurance company, Promotional Currency can provide brands with a fixed-cost solution that amounts to a fraction of the actual promotional value. And should over-redemption occur, Promotional Currency will cover the cost – whatever the value of the prize, rebate, coupon or premium.
“Promotional risk coverage enables businesses to plan promotional expenses to the penny, eliminate budget overruns for higher than expected response, and stretch promotional dollars for the maximum market impact,” says Schaffer. “It also allows them to eliminate promotional liability from their books.“
Promotional Currency offers so many services such as digital entertainment promotions, promotional ringtone cards, digital product promotions and so much more.
