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Jan 5, 2014

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The power of scratch and win…

At Scratchd, we often get asked the question, “why scratch & win?” We felt there was no better way to kick off our blog then to answer this question and share our knowledge on the topic. The “scratch & win” promotion is a proven in retail and is viewed by many retailers as one of the most successful promotion types for peaking sales. So, what makes it so successful? Learn more here: /?n=f5823ba32915c0 44a374a605cc4486bd #/blog 1) Gaming The randomization of the offers introduces a gambling element and makes it suspenseful for the consumer. The level of discounts available is known, but the “chance to win” the highest value offer drives excitement when scratching. 2) It’s a simple, well-known concept Sales associates understand how it works, and so do shoppers. “Scratch & win” brings a unique opportunity that consumers view as a privilege, but have most likely participated in before, therefore needing minimal guidance beyond the words “scratch & win.” 3) Emotion Consumers make purchases through logic and emotion, and “scratch & win” introduces the emotional element of winning to help drive the purchase. 4) Expectation of consumer Although the consumer is excited at the chance to win a high value discount, it is not the expectation. The comfort for the consumer to know they will win at least the minimum offering is enough for them to commit to making the purchase. 5) Control for the retailer In a world where consumers often make purchase decisions based on reduced price, “scratch & win” gives the retailer control to mix up the discounts. While some will win the high value discount, most will win a lower value, resulting in more profit for the retailer. Note that these customers still walk away feeling happy with their “scratch & win” experience. So now the question, if it is this much of a win-win, why aren’t we scratching every weekend? We have learned that running a “scratch & win” promotion is very expensive due to the high cost of print and distribution, and is often viewed as a big commitment. For this reason, the concept of printing scratch cards only makes sense for large retailers ordering very high volumes. Reasons for introducing a digital “scratch & win” solution: Cost With the high cost of print, traditional scratch cards are very expensive. A large volume is often committed to for the purpose of reducing the cost per card. With digital, a scratch is no longer a print cost and no quantity commitment is necessary. Digital also avoids the high cost of mail-out and distribution if it is being considered as a part of the promotion. Turn-around time While planning for a traditional “scratch & win” promotion can take weeks of idea generation, design, and back and forth with print shops, going digital allows for campaign creation and distribution to happen in minutes. Flexibility Digital creates an opportunity for businesses of any size in any type of setting to create and execute a “scratch & win” promotion. Small businesses can now participate and large retailers can run multiple smaller promotions, while avoiding mass commitment. In addition, the proven concept can now be carried over to an event or tradeshow setting as a simple engagement and data collection tool. Data Collection The digital solution offers an added opportunity for data collection. The customer is incentivized with a “scratch and win” for sharing their email address and other information. Delivery Digital “scratch & win” creates unique content to be delivered to customers through a touchscreen in-store or directly to their smartphone. Added Value The opportunity for valuable feature add-ons is endless.  (Jan 8, 2014 | post #1)