Digital Promotions with Promotional Risk Coverage

Digital Promotions with promotional risk coverage allows your company to launch high-impact promotions at a
fixed cost. Have you ever wondered how your competitors are able to offer $1 million
prizes? Have you ever watched in dismay as seemingly smaller companies in your
market are able to engage your customers with large-value premiums? How can their
marketing budgets possibly handle the potential redemption volume?

Your competitors are relying upon promotional risk coverage in order to stretch the
marketing reach of every promotional dollar. They are offering customers a chance to
win valuable prizes and premiums at a fixed cost. They are launching exciting rebate
and coupon promotions without fear of going over budget, even if those promotions
become runaway successes.

You can do the same. You can leverage promotional risk coverage to inject a new
level of excitement into your market without worrying about cost overruns.

In this article, you'll discover how over redemption coverage eliminates budgetary
uncertainty. We'll explain how promotional risk coverage works and how you can use
it to plan each of your marketing campaigns to the penny. You'll also learn how to
launch large-scale promotions with high-value prizes while paying a fraction of the
associated cost.

Over Redemption Coverage Eliminates The Risk Of Uncertain Outcomes

Imagine this scenario: You have launched a promotion to build awareness about a new
product among millions of consumers. To do so, you're offering a tie-in premium with
the purchase of a well-known, entrenched brand. The problem is, your budget can only
handle a 20% redemption rate. If response to your promotion exceeds 20%, it will
decimate your budget. How can you launch this type of promotion given the
uncertainty of your market's response?

Promotional risk coverage eliminates that uncertainty. It provides financial
protection in the event that your promotion's redemption rate skyrockets. You'll
enjoy the marketing advantages of a high response to your promotion while
dramatically limiting your cost.

How Promotional Risk Coverage Works

The lever that allows you to offer high-value prizes, premiums, and coupons without
the risk of devastating budget overruns is insurance. Your promotional risk coverage
is provided by an A+ insurance company. The insurance company assumes the risk of
awarding prize winners and the costs associated with higher-than-anticipated
redemption rates.

It's important to realize that promotions offering guaranteed prizes cannot be
shielded with promotional risk coverage. The coverage is based upon odds. Once the
insurance company calculates the odds of a high-value prize being awarded, they'll
quantify the risk and extend coverage for a fixed fee. Odds are also calculated for
redemption rates of premiums, coupons, and rebates.

Promotional Risk Mitigation Protects Your Marketing Budget

Your company's marketing budget has limits. The challenge is to work within those
limits while squeezing the most value from your promotional campaigns. Promotional
risk coverage preserves your budget and lets you plan your marketing costs to the
penny. It gives you the flexibility to launch promotions that deliver a stunning
impact to your market without assuming the risk of over-redemption or awarding
winners. Your budget is protected. Whether your customer wins a $1 million dollar
prize or your premium redemption rate hits 100%, promotional risk coverage shields
you from the financial risk.

Promotional Risk Coverage: Large-Scale Promotions At A Fraction Of The Potential Cost

Games and contests that offer consumers a chance to win prizes with a high-perceived
value attract enormous attention. The bigger the prize, the higher the response.
Without promotional risk coverage, these types of promotions would be all but
impossible to launch without assuming an inordinate level of risk.

For example, suppose you wanted to launch an on-pack promotion on a popular brand
through which customers could redeem a coupon for a free tank of gas. Further
suppose you don't have the financial protection of promotional risk coverage. What
would happen if one million consumers redeemed your coupon? Could your budget
withstand the expense?

Promotional risk coverage allows you to launch these types of marketing campaigns
without worrying about your budget imploding from a higher-than-expected response.
It delivers the marketing exposure at a fraction of the potential cost.

Leverage Promotional Risk Coverage For Your Business

Can large-impact promotions with high-value prizes help your company build brand
awareness while motivating a market response? Consider these findings...

According to eMarketer, "The chance to win is the number one most effective tool to
motivate consumers to participate in permission-based marketing efforts."

According to Jupiter Research, "82% of consumers will provide private information in
exchange for the chance to win."

Promotional risk coverage lets you launch high-impact promotions with budget
certainty. It lets you stretch your marketing budget while generating awareness and
prompting a response from your customers. Expand your brand; educate your market;
excite your customers; drive sales. Promotional risk coverage protects you
financially while helping you accomplish all four goals.

--Cynthia Walker, Promotional Currency