Instant Win Drawings Reduce Incentive Costs and Improve Panel Engagement

Instant Win Drawings Reduce Incentive Costs and Improve Panel Engagement

Challenge

Incentive Panel Managers constantly face the challenge of recruiting, engaging, and retaining participants while striving to satisfy company and client stakeholders. Common issues reward managers encounter include:

  1. Program had a low point earning rate.
  2. Stale promotional offerings.
  3. Insufficient products to engage participants with low point values.
  4. Budget constraints.
  5. Disconnected user experiences.

This Case Study is based on a large online market research Client experiencing all the common issues above. To gain comprehensive insights into the existing reward mix and identify areas for improvement, we strategically assembled cross-functional teams within All Digital Rewards. These teams were carefully composed of experts in reward management, data analytics, program design, and market research. Our collaborative efforts were aimed at delving into the intricate details of the current reward setup, including the types of incentives offered, participant engagement levels, and budget allocations. By leveraging their combined expertise, these teams meticulously examined the program’s historical data, participant feedback, and market trends to extract valuable insights. This thorough analysis was instrumental in shaping the recommendations for our solution, ensuring that our proposed enhancements would be rooted in a deep understanding of the program’s dynamics and objectives.

One key aspect we examine when addressing these challenges is whether marketers are incorporating Interactive drawings into their product marketing mix and how they are integrating these types of games into their programs for engagement.

In short, the recipient must associate some real or intrinsic value to the reward; enough value that the mere chance to win the reward is sufficient to impact their decision making.

Solution

We recommend implementing All Digital Reward’s reward and incentive loyalty software system, RewardSTACK™ technology, and the Instant Win Drawing and Reward WIZARD™ applications, analytics and reporting to address these challenges. The following recommendations were deployed by Client:

  • Implementation of a Prize Mix Strategy: Set up regular check in meetings to review insights and optimize reward offerings. This will provide an ongoing assessment of the most appealing incentives for participants. A strategy allows for real-time adjustments based on participant feedback and changing preferences, ensuring that your program remains aligned with the evolving needs and desires of the audience. This allows program administrators to fine-tune reward selections, maintaining high participant engagement levels and program relevance over time. The strategy included leveraging the concept of Self-Selection. Self-selection is a process in which individuals or participants voluntarily choose from available options based on their preferences or characteristics. This allows program managers to test side by side existing reward offerings to check for and test participants interested in games, drawings and prizes and alternate reward options.
  • Addition of Instant Win Drawings: Ensuring the Marketplace reward mix included the lower cost Instant Win Drawings. The addition of drawings will provide a well needed surprise and delight that includes well-chosen “hooks” with perceived high value prize mixes to entice recipients to trade their time, effort, or loyalty points for the opportunity to win a prize.
    • A focus on using a high-profile reward in each prize pool as the primary enticement for low point earner participants. The Grand Prize Reward becomes the engine driving the program’s effectiveness.
    • According to Gallup data, about 66% of Americans have participated in some form of game of chance in the last 12 months. Men slightly more than women. All other ages, geographical location, education, religion etc. Demographics data supports higher than 60%.
    • Opportunity to add a test more cost effective rewards that potentially will appeal to a large percentage of the panel.
  • Alignment of Reward Program with Brand: Customize the game and reward elements to align with the specific goals and preferences of the market research program. This customization ensured that the game seamlessly integrates with the research objectives and fits their market research program’s unique objectives and demographics. We tailored the gamified elements to resonate with their target audiences.
  • Encouraging Better Behavioral Outcomes: Adding Instant Win Drawings provides the ability to run multiple prize drawings for different prizes and demographics simultaneously, each with its own reward scheme and cost per entry. This will allow client to determine the drawing reward budget and the number of entries available, retaining control over costs to align with the specific goals and preferences of the market research program. This customization ensured that the game seamlessly integrated with the research objectives.
  • Leverage Operational Efficiencies: Implementing a game and reward solution that was seamlessly integrated with clients existing market research tools and systems, minimizing disruptions and streamlining the implementation process. Provide the flexibility to adjust the odds of winning to meet specific objectives while maintaining cost control. Each reward budget can remain unchanged while increasing the number of winners dramatically, leveraging the power of high-profile rewards at a low unit cost. Recommend using ADR’s advanced real-time analytics and reporting tools to access valuable data on participant engagement, behavior patterns, and the overall effectiveness of the game-based incentives. This data-driven approach allows for continuous program optimization.
  • Work with Skilled Professionals: By choosing All Digital Rewards they would have a full scope of services, including concept design, co-branding, legal terms, setup, administration, and assistance in selecting the best game solution. ADR’s strict adherence to data privacy and security compliance meets the client’s need for data controls and maintaining the confidentiality of research data. Additionally, comprehensive support and training resources for program managers to ensure a smooth transition to the new game-based incentives. This includes assistance with setup, ongoing management, and troubleshooting.


Results:

Implementing a range of reward drawings with high-profile, high-perceived-value “hooks” within an overall reward program, supported by advanced technologies, led to significant benefits, including:

  • Dramatic reduction in marketing costs and liability.
  • By adding the ability for their participants to self-select the reward option of choice, concept of “Self-Selection” allowed clients to reduce points liability as members choose to exchange or redeem points for the reward and drawing entries at an attractive lower rate – moving participants away from costly cash options.
  • 10% Lift in engagement
  • 25% shift away from high cost cash rewards.
  • Experienced 10 to 30% savings in actual reward costs based on grand prizes offered and prize pools set up and the ability to purchase a cash value of $5.00 for $1.00. Over $200,000 in annualized savings.
  • Burned off points liability by allowing participants to exchange $5.00 in point value for an Instant Win Drawing Token cost of $1.00 paid by Client.


Conclusion:

In conclusion, addressing the challenges of stale promotions, limited engagement options, tight budgets, and disconnected user experiences in incentive programs requires a strategic approach. By implementing All Digital Reward’s solutions, organizations can efficiently drive behavioral outcomes, reduce costs, and engage participants effectively, ultimately achieving the desired results in their incentive programs. These solutions offer a comprehensive and cost-effective way to enhance program engagement and participant satisfaction.