On-pack promotion is a common sales promotion technique that involves offering customers an incentive on the packaging of products.
Depending on your goals as a business, on-pack sales promotions can be used for a variety of reasons, from making your product stand out on the shelves to driving sales.
In short, yes, on-pack promotions work for a range of different brands. This is supported by the fact that businesses continue to run similar campaigns every year, emphasising the positive impact they can have.
To break the success of on-pack promotions down, we’ve come up with the four most significant reasons why on-pack promotions work.
On-pack promotions work in that they can help brands to:
- Boost sales
- Encourage customer engagement and retention
- Gather customer data
- Increase brand awareness
1. Boost Sales
On-pack promotions are great for boosting sales as they give your customers a reason to choose your product over other competitors.
Offering on-pack promotions gives something back to your audience in a way that’s mutually beneficial for you both. In fact, a study on on-pack promotions found that ‘two-thirds (66%) of all those surveyed believe that on-pack promotions make brands more attractive’.
This emphasises the fact that on-pack promotions not only give customers an incentive to buy your product but also help your product to stand out amongst competitors.
That said, if one of your goals as a business is to boost sales, then on-pack promotions can help you achieve this.
2. Encourage Customer Engagement & Retention
Investing in on-pack promotions can also help to encourage customer engagement and retention.
This comes down to the fact that on-pack promotions provide an easy way of interacting with your customers. Additionally, it offers them something exclusive that allows your brand to garner a greater bond with your customers, encouraging them to engage in future campaigns.
The potential of winning a prize or reward is appealing to customers whilst also helping customers to feel more valued.
As such, providing your customers with rewards and prizes will not only help to boost customer satisfaction but also increase customer loyalty and retention as your brand becomes synonymous with exciting promotions and prizes.
At Lime, our expert team has years of experience in developing on-pack promotions. Get in touch with our friendly team and see how we can help your brand today!
3. Gather Customer Data
On-pack promotions also work well because they allow you to gather customer data.
Gaining a better understanding of your customers and what they engage with is crucial to creating an effective sales campaign.
One of the main goals of being a consumer-centric business and gaining clarity on your target market is to build brand intimacy through ‘creating strong emotions [which] can help build a bond between your customers and your business’.
Including a microsite within your on-pack promotion, for instance, gives you the opportunity to gather incredibly informative and valuable customer data every time someone enters.
By gathering this customer data, then, you’ll gain an understanding of how well your on-pack promotion has worked and will be more informed for your next campaign.
4. Increase Brand Awareness
Last, but not least, on-pack promotions help to increase brand awareness.
When a brand runs an on-pack promotion, it is not just with the shopper in mind. One of the main reasons for a brand to run an on-pack promotion is to excite and engage the retailers.
By developing an on-pack, brands are bringing something new and exciting to the category and therefore retailers are more likely to offer incremental space in store to stock and sell the promotional product.
This additional brand awareness means more shoppers see the promotion, leading to increased sales uplift.
Types Of On-Pack Mechanics
There are numerous types of mechanics you can use to engage with customers.
These include, but are not limited to:
- Text to Win
- Promotional websites
- AR
- Gamification
Using a range of different mechanics, in the beginning, can help you to establish what your target audience engages with the most.
Additionally, carrying out market research on competitors will also highlight which types of on-pack promotions you should be using to reach your goals.
We are Lime, an independent partnership and sales promotion agency based in London.
If you’re interested in learning more about the work that we do, please get in touch with a member of our team today on 02073179280 or at Charlie@wearelime.co.uk.
And for more sales promotion insights, check out our other articles such as ‘The Power Of Partnerships: Returning Partners‘, ‘What Is Connected Packaging?‘ and ‘What Role Will AI Play in the Future of Sales Promotion?‘.
