Looking Beyond the Bracket for a Unique Sports Promotion
Prize Indemnity Insurance from PPI makes it easy to create attention-grabbing promotions for the brands that you work with.
Popular sporting events, like say, the men’s college basketball tournament that’s about to get started are a great platform for successful promotions. These sporting events garner a good deal of the public’s attention anyway and promotions that are associated with them are a great way for brands to capture some of that attention and build their own exposure.
The most common college basketball tournament promotion is offering an insured mega prize to anyone who can pick the perfect bracket – correctly predict the winner of all sixty-three games. Of course, this is extremely difficult to do. That fact makes it an easily insurable risk. In addition, the concept of the perfect bracket is easy for the consumer to understand.
But there are downsides
One considerable downside of the perfect bracket promotion is that it has been done dozens, if not hundreds, of times over the past 20+ years.
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PPI has insured many perfect bracket promotions each year and we have never paid a claim on this type of policy. To our knowledge, no one has ever won a prize for accomplishing this feat.
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So how do you break out of the bracket?
If you ask us, rather than running another perfect bracket promotion, perhaps it is time to create a new concept. Maybe the large insured prize is offered to one contestant if a real long shot (13 seed or higher?) is one of the last four teams standing.
Perhaps the contestants who picked the most winners in the earlier rounds have the opportunity to win an insured prize if they can correctly predict the score of the final game.
The bottom line is that brands can stand out from the crowd by offering promotions with large insured prizes. PPI has the experience and creativity to help you produce successful and memorable promotions for the brands you work with. If it’s not college basketball, maybe it’s a NASCAR promotion or a pro football promotion.
My customers aren’t really sports people …
And if sports don’t work for your brand, there are plenty of creative ways to weave the excitement of a huge insured prize into whatever theme fits. The Oscars? Game of Thrones? We have a lot of ideas that we’re happy to share with you. We can help you create a compelling and exciting promotion that utilizes Prize Indemnity coverage that also fits the constraints of the brand’s budget.
Contact PPI at 888-407-5841, email us, or fill out our quick quote request to let us know what you’re interested in doing. We can help you make it happen.
Ouch! How to Avoid a Costly Lesson with Over Redemption Insurance
Ouch! How to Avoid a Costly Lesson with Over Redemption Insurance
Every marketer is looking to create the next great promotion that generates a response among consumers that wildly exceeds all expectations. Such success, however, may also come with a downside.
If the original promotion budget was based on the cost of fulfilling a 2.5% response rate, and the actual response rate hits 6% or 8% or even 10%, the fulfillment costs could put the brand in a deep hole.
The good news is that Over Redemption Insurance from Prize and Promotion Insurance (PPI) provides exactly the protection the brand needs. PPI can structure an insurance policy that keeps a super successful promotion offer from becoming a super costly “lesson.”
Famous for the Wrong Reason
The most famous example of a brand learning a costly lesson goes back to 1992 when Hoover vacuums in the UK offered consumers an airline ticket worth around $900 for a vacuum purchase of only about $150.
So many consumers responded that the Hoover factory had to institute a seven-day work schedule and hire additional workers to meet the demand for their least expensive vacuum.
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Some consumers were only interested in the airline ticket and did not even bother to pick up the vacuum they had purchased.
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In the end, Hoover did generate $45 million in additional sales, but spent approximately $75 million in airline tickets and legal settlements related to the promotion. Ouch.
If Hoover had opted to pursue Over Redemption Insurance, the brand would have been able to avoid that financial hardship. The easiest way to avoid a similar situation the next time you’re creating a killer consumer offer is to include Over Redemption Insurance from PPI in your planning.
How Do I Figure Out What Coverage I Need?
PPI can help you with that. The primary questions we need answered in order to write your Over Redemption Insurance policy include:
- How long will the offer be available to consumers and how long to consumers have to redeem?
- How many offers will be distributed to the public?
- What does the consumer need to do to complete his/her redemption?
- What is the actual cost to the brand of each redemption (not the retail cost)?
- What is the marketing plan? How the offer will be communicated?
- What level of redemption is expected?
- What was the redemption level on similar offers made in the past?
Over Redemption Insurance is easy and inexpensive way to make sure the redemption costs of a successful promotion do not break the promotion budget.
Contact PPI at 888-407-5841, email us, or fill out our quick quote request to let us know what you’re interested in doing. We can help you make it happen.
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