Quotient [1] (NYSE: QUOT), the leading digital media and promotions technology company, announces today that it has released its 2022 Promotions Report [2] that details its most important variables of high-performing promotions learned from the study and provides insights and recommendations to help brands and advertisers effectively plan and develop promotion strategies for the year ahead.
[3]Quotient’s study examined campaign data from 300 CPG companies representing more than 800 brands and 128 product categories across drug, grocery, mass merchandiser and dollar store channels. The insights unlocked by this data are vital for advertisers to fine-tune their digital promotion strategy and maximize overall performance goals. Additionally, the report notes tactics that are essential for a data-driven approach, including when to use demographic information and purchasing behaviors to target value-driven consumers who have shown prior interest in a specific product or category.
Steven Boal, CEO at Quotient said “We are happy to share the results of an in-depth analysis of over 100,000 promotions. As we begin 2022 and value remains top of mind for consumers, delivering effective and efficient promotions will be paramount. We hope the insights and recommendations we lay out empower brands to confidently launch promotional campaigns across various platforms to maximize success.”
Some high-level findings from the Quotient report include:
- There are five key variables of promotion performance. These include Category, Scale, Offer Value, Effective Discount and Required Purchase Quantity. All variables except for Category can be changed and optimized for improved outcomes.
- Quantity matters. Shoppers who activate promotions that require them to purchase three or more products are more likely to redeem those offers.
- It is important to note, however, that the bulk purchase activation is highest among non-perishable, shelf-stable items consumers can ‘stock up’ on, as opposed to perishables that need to be consumed more quickly.
- Offer value plays a major role in redemption rates. Quotient data found that even when offer value is high, consumers are less likely to redeem if the effective discount is insufficient to the price of the product itself.
- Scale is key for accurate campaign forecasting. While national and shopper marketing campaigns delivered comparable incremental dollars per activation, the Quotient study found that promotions with greater scale achieved more consistent results due to their ability to reach more consumers. National campaigns attracted the highest activation levels within the beverage, food and healthcare categories. By contrast, shopper marketing campaigns saw highest activations in personal care, household and pet products.