By Abby Cook, Project Manager
Think of all of the promotional emails you receive in your inbox. What brands come to mind? Normally it is the ones that are frequently reaching out with enticing short term promos: “Hurry Up! 50% off ends today”.
At CashStar we often see large promotions running for specific holidays, but this year brands are adopting a more dynamic promotion calendar. This shift falls right in line with the newly popular Agile Marketing initiative. Agile Marketing is a flexible marketing strategy focused on “short marketing experiments, frequent feedback, and the ability to react to changing market conditions”. Derived from the Agile software development method, Agile marketing meets today’s needs by focusing on iterative development of marking programs. Instead of using stale data from last year’s promotion, the marketer can leverage current market trends to meet consumer expectations and ultimately build brand loyalty.
So, how can Agile Marketing improve your prepaid commerce program?
Speed to Market
Agile Marketing allows for campaigns to reach the market place at a rapid pace. Running multiple smaller promotions decreases both the planning and the risk that can be associated with large promotions. Promotions can be specialized for a certain period of time or targeted audience. For example, two different promotional codes can be created and distributed to a very loyal group of customers as well as a group of recent first time buyers. The two groups have a limited scope and the promotional codes are quickly distributed via email. No large marketing campaign is required. Once set up, the same promotion can be run multiple times over the course of a month.
Marketing Performance Management
By keeping the scope of the promotions smaller, the number of variables remains manageable and data can be analyzed, yielding concrete conclusions on performance. Take the example above. Instead of running one promotion open to all for the month of May, there are three campaigns. Maintaining control variables for each (consumer group) allows the merchant to analyze the differences between the promotions. The data empowers a merchant to really understand their consumers, the areas where the promotion was successful, and opportunities for improvement.
Running more frequent campaigns rewards merchants with up-to-date data on the consumer landscape. By analyzing the results from many campaigns, the marketer can see where promotions are succeeding and where sales are lagging. Targeting the campaigns towards a single audience can also yield key information on the success of the promotion. For example, by creating three different single use promo codes and dispersing them across consumer verticals, a brand can learn more about their purchasing groups than running one large promo open to all buyers. After analyzing the data, small changes can be made to improve the efficiency of the promotions.
Program Growth and Customer Loyalty
By increasing the frequency of promotions marketers are able to see real time data, analyze results, and adjust their programs more often. The second added value is the increased frequency with which a brand can engage their consumers. Consumers recognize brands that run multiple promotions, and are more likely to visit their website on a regular basis. In the highly competitive ecommerce world, building consumer loyalty can be invaluable.
Where to start? Give agile marketing a try.
- Run a few promotions.
– Try out different price points. For ex. 10%, 15%, and 20% off.
– Provide three consumer groups different promo codes.
- Analyze the results.
– Which promotion yielded the best sales numbers?
– Which promotion resulted in the highest redemption rates?
– Which group of consumers showed the highest spending lift over the gift card amount?
- Build an improvement plan and try it again.
The results will empower you when planning for larger scale promotions during the busy shopping season.