Keep Customers Coming Back With Promotional Products
Customers who receive promotional products, on average, return sooner and more frequently, and spend more money than customers who receive coupons. In two separate studies, SMU researchers tested whether promotional products would outperform coupons in the area of repeat business and sales.
Study One – Food Delivery Service – 1993
Study Two – Dry Cleaner – 1994
Study details: Study one was conducted in 1993 by Southern Methodist University, and consisted of approximately 900 people that were divided equally into nine groups. These nine groups were broken down by type of customer (existing residential, new residential, and business customer) and what they received (promotional product, coupon, or nothing). Products and coupons were valued at $2. Study two, also by SMU, was conducted in 1994, and tracked the activity of 300 new customers at two locations of a dry cleaner. These customers were randomly assigned to one of three groups, all of whom received a welcome letter. Two of these groups received, in addition to the letter, a promotional product or a coupon (each valued at $5).
REAL WORLD SUCCESS STORY
To personify a promotion and motivate additional customer transactions.
Strategy & Execution:
Playing on the skeptical notion that free checking is an incredible as pigs that fly, Norwest introduced free checking in its 60 Arizona branches.
Designed as a flying pig, a piggy bank was created to give the broadcast and print advertising a personality and to be used as a premium. Customers who signed up for free checking were offered the piggy bank in return for opening a savings account, applying for credit or other Norwest products. Reprinted with permission of Promotional Products Association International, copyright 2005.
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