Promotional Risk Coverage Magnifies The Impact Of Your Marketing Promotions

Promotional risk coverage eliminates the budget uncertainty associated with offering large prizes, attractive coupons, and generous rebates and premiums to your market. It gives you an opportunity to launch exciting marketing campaigns through which you offer high-value promotions that would otherwise lie beyond your budget. Such promotions attract attention. They excite people and generate an enormous response. As a result, you'll enjoy a higher volume of in-store and online traffic, a surge in customer registrations, and a growth in sales.

As the economy continues to struggle, it is more important than ever that you stretch your marketing budget. Moreover, competition is increasing within every space. You need to have a way to differentiate your brand and products to an audience that is bombarded with promotional offers. Promotional risk coverage helps you to design exciting contests and games whereby consumers have a chance to win bigger and more compelling prizes. And you'll be able to do so at a fraction of the prizes' value.

Promotional Risk Coverage Protects You From Budget Overruns

Suppose you have a marketing budget of $15,000. You want to design a promotional contest that gives your customers the chance to win a $500,000 prize. The prize value is obviously much larger than your budget; it seems out of reach. Promotional risk coverage makes this type of contest possible.

The risk is placed with an insurance company. To outsource the risk, you would pay a small fixed fee. If a contestant wins the $500,000 prize, the promotional risk coverage takes effect and the insurance company steps in to cover the difference.

This same risk mitigation strategy can be easily integrated with your coupon programs, rebate offers, and high-value premiums. For example, suppose you want to launch a coupon program that carries a redemption value of $750,000 on a popular brand of deodorant. With a $15,000 budget, this may seem all but impossible. Promotional risk coverage makes this type of high-impact promotion possible by removing the risk of a larger-than-expected redemption rate.

When you notice your competitors offering staggering chance-to-win prizes of $1 million, it is not because they have a $1 million marketing budget. Chances are, their advertising budget is limited. They are able to design these exciting marketing programs because they are using promotional risk coverage to extend their impact. You can take advantage of the same opportunity.

Advantages Of Promotional Risk Coverage

The obvious advantage of promotional risk coverage is that it amplifies the impact of your marketing budget. It stretches every dollar. In reality, the benefits extend much further.

First, large prizes, coupons, and premium offers attract attention. They generate excitement and encourage consumers to participate. That gives you a chance to penetrate new markets, establish a presence, and improve brand awareness.

Second, by designing high-impact programs, you'll quickly build a customer database that you can mine for future marketing campaigns.

Third, programs that leverage promotional risk coverage to offer massive chance-to-win prizes inevitably increase sales. This is due to the exposure you'll enjoy as your customers get excited about the prizes.

Creative Marketing Campaigns With Promotional Risk Coverage

A lot of companies use promotional risk coverage to launch contests, games, and marketing programs at a fraction of the prize or redemption value. With a little creativity, you can design promotions that leverage this risk mitigation strategy even further.

For example, suppose you would like to launch a promotion that awards a $25,000 guaranteed prize. Promotional risk coverage will not cover guaranteed prizes, but it can eliminate the budget uncertainty of chance-to-win prizes, coupons, and high-value premiums. Instead of dedicating your budget to a $25,000 guaranteed prize, why not design a promotion that blends multiple types of promos? For instance, offer a $5,000 guaranteed prize, a $100,000 chance-to-win prize, and a $250,000 coupon program. Promotional risk coverage gives you the flexibility to design this type of creative marketing program.

Brand Differentiation With Promotional Risk Coverage

Differentiating your brand and products will always represent a major competitive advantage for your company. The challenge is using a strategy that excites your customers while keeping a tight rein on your advertising budget. Promotional risk coverage lets you offer high-value prizes, coupons, premiums, and rebates without concern for going over budget.

Would you like to generate excitement in your market by offering consumers a $500,000 chance-to-win prize? You can do so at a fraction of the prize value. Want to launch a $250,000 coupon program to stimulate a response and attract new customers? Doing so is easy at a small percentage of the program's redemption value.

Invest the time to explore how promotional risk coverage can help you engage your audience, excite your market, and catapult your sales.

--Cynthia Walker, Promotional Currency

Use the promotional strategy that allows you to give away millions of dollars in cash and prizes. Promotional Currency's proprietary promotional risk coverage service is a powerful tool that enables you to super-size your promotional programs. Along with incorporating promotional risk coverage into all of their digital incentive product offerings, Promotional Currency helps businesses manage their risk on redemption-based promotions. Protect your company from promotional risk.

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