To Bundle Or Not To Bundle?

To Bundle Or Not To Bundle?

Recently one of our clients came up with the idea of running a bundle promotion. In other words, bonus benefits would be awarded to participants if they sold a certain amount of A, B and C products.  

Bundle promotions are commonly seen in our B2B loyalty space and the concept is well accepted by customers. However, here we need to pause and remind ourselves of the purpose of running a promotion. 

By definition, a promotion is only successful if the anticipated results are achieved - whether that’s an increase in sales, or greater product awareness. 

Whatever the objective, we need to ask ourselves these fundamental questions:

1.    Is the product bundle fair? Would anyone ever qualify to win anything?

2.    Who would participate? Loyal customers, opportunists, newbies or others?

3.    Is the promotion time-frame too long, meaning customers won’t react immediately and perhaps forget about it, or is it too short for anyone to take effective action?

At Motivforce, we are collecting an enormous amount of valuable data from programs which we can use as the basis for predicting the outcome of a promotion before the client invests in running it.  By utilizing available historical data and applying the above questions, we are able to predict the outcome close enough to bet on the results. 

In the case of this particular client’s idea, we were able to conclude that probably fewer than three customers out of more than a thousand would qualify for the promotion bundle. The picture became clear: we needed to shift the bundle strategy, otherwise the client would gain
nothing from running the promotion.

One of Motivforce’s missions is to provide data insights and assessments on marketing strategy. By asking the right questions and foreseeing results, we can ensure clients don’t waste their money and that promotions generate successful results. 
  • B2B
  • Marketing strategy & plans
  • Channel Programme
  • Loyalty Incentives
  • data

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