Parago’s recent Time is Money study found that $25 will motivate 3 out of 4 people to demo a product, take a smartphone survey, get a quote online, and participate in a one-hour sales presentation. For Millennials, the price is even lower: they’ll do a smartphone survey for free.
This finding helps marketers make critical decisions that drive consumer behavior. That’s why “Time is Money” has generated media buzz:
Several key points from her perspective:
- "The biggest opportunity for marketers in the near future is intelligent utilization of customer data for relevant communications. This is because customers are increasingly expecting personalized communications from their favorite brands, and tailored promotions that are relevant to them. It is one of the best ways to solidify meaningful relationships with your customer base, and stand out above competitors."
- "Gone are the days that businesses could just dole out sales, coupons and deals indiscriminately. These purely transactional tactics will inevitably result in businesses and their competitors completing the race to zero, and products will be wholly commoditized. Instead, marketers should seize on the fact that that consumers are willing to work to get the best deals: they will drive out of their way for a great rebate, coordinate shopping trips around sales and actively research, plan and shop with a savings purpose."
- "Working from the point of view of delivering promotional programs to some of the world’s top companies: true engagement is attained when both participation and satisfaction converge. When a customer is truly satisfied they become excited and want to find more reasons to participate, i.e. they purchase more products, opt in for email communications to receive exclusive deals, follow the brand’s social media properties or buy a product from another line of business to earn loyalty points or credits faster."
Check out the full interview here.
Incentive magazine recently wrote about how small gifts can make a big impact with employees around the holidays this year.
The article points out that while most employees still do not expect end-of-year gifts from their employers, they are even more appreciative of small rewards than they were in 2011. According to survey results, 61 percent of employees said that a $25 prepaid card would meet their expectations, and 85 percent said they would be happy with $100 or less. The research also shows that employers who are able to reward staff this holiday season will foster loyalty and instill a positive morale.
This is a great read for all marketers puzzled with the problem of positively growing economic indicators but consumers who are unwilling to change their frugal ways.
The key is harnessing the new shopper trends in ways that serve the consumer and benefit the business, not hurt it. If all consumers care about is lower price, then figure out how to deliver the milk without giving away the cow for free, so to speak. Implement promotional strategies that respond to low price demands while also generating loyalty and ongoing relationships with consumers.
Parago ranked number 27 on Chief Marketer's 2012 PROMO 100 ranking of the top U.S. promotion agencies. Parago has been recognized on the prestigious list for four years in a row.
Parago President & CEO Juli Spottiswood says of the distinction: "many of our clients realize that the consumer trend towards frugality is here to stay, so they rely on us to create compelling promotions that keep them top of mind with shoppers and generate additional revenue and customer loyalty for the business."
We recommend this Chief Marketer article that discusses how shoppers have become more price sensitive and increased comparison shopping in the last twelve months - all despite a tentatively recovering economy.
The article cites Parago research published earlier this month.
For the past 40 years, rebates have proven to be effective consumer promotions that drive sell-through of specific products while providing savings to price-conscious shoppers. Rebates have evolved from a simple “sales lift” strategy to a marketing tactic designed to generate long-term consumer loyalty and brand affiliation.
Retailers and manufacturers considering rebates should give this article a read to learn about the best practices for executing successful rebate programs - including a developing a customer-centric approach, offering choice in rewards and more.
Loyalty Management Case Study: Executing a Multi-Brand, Varied Promotional Strategy with Consumer Incentives
Today’s consumer wants to be directly targeted – based on their lifestyle, brand affiliation or circumstance. This means that businesses must execute a variety of promotions with different goals, scale and audiences.
InterContinental Hotels Group (IHG) is a large business encompassing eight hotel brands and a wide array of potential customer audiences. Over the past year, working with Parago, IHG created campaigns to target specific audiences, specific ‘newsworthy’ events, drive strategic partnerships and support core brand offerings. These intelligently designed promotional campaigns leveraged Parago’s ability to validate multiple purchasing behaviors and consumer traits, and flawlessly deliver upon that reward experience.
Read the full case study here.
This week Business Management Daily examined how employee incentives can "spur sales, improve retention and employee loyalty, and raise productivity during an era of slim pay raises and uncertain bonuses."
The article mentions data from the nonprofit Incentive Research Foundation (IRF), which showed that incentives of all kinds can attract and retain good employees, boost team performance by as much as 44% and increase individual productivity by an average of 22%.
The story also includes 10 tips for building a recognition program that drives performance, including one with research from incentive leader Parago: "Sweeten that 'thank-you.' There’s no need to go overboard. In an employee survey by corporate incentive provider Parago, 64% said a prepaid gift card worth $50 or less would meet their expectations (55% would settle for $25)."
Read the full article here.
This week CNN published a story about holiday bonuses in the workplace.
The article explains that 81 percent of workers think end-of-year rewards are nice, but do not expect them this season (according to research from Parago). Additionally, the author suggests that instead of using money to motivate employees, employers should publicly acknowledge them for their good attitude and consider other perks, such as Friday afternoons off, to show appreciation.
Read the full article here.