Question 1

What makes a consumer promotion successful?

Accepted Answer

A successful consumer promotion targets a specific behaviour, offers relevant value, keeps participation simple, verifies the qualifying action and measures what happens next.

Question 2

What is the difference between a discount and a promotion?

Accepted Answer

A discount primarily changes the price. A consumer promotion is designed to influence and measure a specific customer behaviour.

Question 3

How should brands choose promotional rewards?

Accepted Answer

Brands should choose rewards based on the target audience, desired behaviour, perceived value, effort required and economics of the promotion.

Question 4

Is cashback the best consumer-promotion reward?

Accepted Answer

Not always. Cashback works well when speed, certainty and liquidity matter, while vouchers, merchandise, cinema, travel and experiences may be more appropriate for other objectives.

Question 5

How much should a promotional reward be?

Accepted Answer

The reward should be valuable enough to motivate the desired action while remaining economically viable relative to the expected incremental value.

Question 6

How can consumer-promotion fraud be prevented?

Accepted Answer

Use appropriate verification and controls such as unique codes, OTP, invoice or receipt validation, duplicate detection, velocity limits and exception review.

Question 7

Which consumer-promotion metrics matter?

Accepted Answer

Key metrics include incremental actions or sales, verified participation, cost per incremental action, repeat purchase, journey drop-off, reward fulfilment, suspicious claims and consented first-party data.

Question 8

How do promotions create repeat purchases?

Accepted Answer

A promotion can encourage repeat purchase when it continues beyond the first reward and creates a clear next milestone, relevant benefit or follow-up interaction.

FMCG Marketing Tag