Consumers are ready for a new era of brand promotions, with over half (51%) saying a genuinely creative promotion would make them try a brand for the first time – but many brands are still defaulting to basic “money off” discounts.
That’s according to Creative Currencies in Promotions, a new report produced commissioned by Talon.One – the leading incentives platform powering loyalty and promotions for over 300 global enterprise brands – including analysis from WPP Enterprise Solutions and Mando.
The report, based on a survey of 2,000 UK consumers, carried out by Censuswide, reveals a significant gap between the promotions brands are serving up and what consumers actually respond to. Loyalty points, BOGOF (buy one get one free) offers and discount codes dominate what consumers see – yet nearly one in three (29%) cannot recall a memorable promotion at all. Meanwhile, over half (51%) describe the promotions they receive as generic or predictable, and 48% often find them irrelevant.
The commercial cost of this over-reliance on discounting is clear. More than half of respondents (55%) say that when brands discount products constantly, they become reluctant to pay full price – damaging a brand’s equity and bottom line.
Christoph Gerber, CEO and Founder of Talon.One, commented: “Price promotions are one of the most overused and costly activities in marketing – not only are brands discounting away 20% of their revenue to drive short-term metrics, but constant discounts train customers to wait for price drops, eroding brand equity and margin. While a price cut might drive an immediate transaction, marketers need a more creative approach to build the equity and emotional pull that brings customers back.”
Consumers are hungry for something different. As well as over half (51%) saying a creative promotion would make them try a new brand, the same proportion like promotions that go beyond a straightforward discount.
Over a third (37%) say a promotion has made them feel more positively about a brand beyond simply saving money. This figure rises to 56% among 18–34 year olds, pointing to an opportunity to use thoughtful, creative promotions to build long-term brand affinity with younger audiences.
The data also points to strong consumer appetite for gamified promotional mechanics. Forty-one percent of UK consumers say they enjoy a game or a challenge in a brand promotion, and 66% are aware of or have participated in McDonald’s Monopoly, a prime example of gamified promotions. This rises to around 80% among 18–34 year olds.
These findings are reinforced by research carried out by System1 Group, included in the Creative Currencies in Promotions report, which found that gamified mechanics consistently outperform straightforward discounts on the metrics that drive long-term brand value – memorability, excitement and uniqueness.
Leonie Walker, managing director at Mando, added: “The data consistently demonstrates that creativity in promotions pays. Mando’s own research, “What the Brits want from Promotions 3.0” shows that over half of consumers (55%) take part in gamified promotions. Other creative rewards such as gift with purchase, instant win and prize draws achieve participation rates close to the classic cashback mechanic. This less creative, delayed discount mechanic can be made better through the smart application of gamification principles. The brands that invest in creative execution, not just price reduction, are the ones that build long-lasting relationships.”
Katherine Lauritzen, business consultancy director, MAP at WPP Enterprise Solutions said: “Marketers have long shown their expertise building emotional connection through creativity in advertising and brand storytelling – but this creativity is too rarely applied to promotions. Delivering differentiated promotional experiences at scale requires the right architecture: unified data, real-time activation, technology, and clear ways of working that let business teams operate without being in a constant queue for IT. ”
To help brands break out of margin-draining habits, Creative Currencies in Promotions introduces eight Creative Currencies, giving marketers a practical framework for delivering value beyond price – from gamified mechanics and cultural moments to aspirational experiences and purpose-driven rewards. The report can be downloaded here: talon.one/download/
