*****PromoCard***Definition and Marketing*****
The PromoCard has an alltogether different function even though it is a derivation of the MusicCard. It has a 5 CD purchase capability and is primarily used as a corporate promotional item. It's value starts out at about $2.50 but that figure is a starting point in the corporate deal making.
Think about where and how the PromoCard can be utilized. It can be placed on the back side of venue tickets and given with the purchase of entry. It can be printed on consumer packaging to be cut out and utilized by the purchaser as a bonus for purchasing the primary object. It can be placed in delivery material. It can be given with subscription material. The list is endless especially if thought is put to products and situations.
Once received the prospective customer must decide to call by phone or internet and activate the PromoCard or discard it. Once activated the customer has the right to purchase 5 CDs at CCI MusicCard prices. Once the 5 CDs have been purchased the customer then can reload to a MusicCard. A high percentage do since they have now become accustomed to CCI and their competitive pricing and service.
Place a lot of thought into the revenue generated by corporate deals. If a nationwide concern wants to promote their product with the PromoCard in a given quarter instead of discounting the price, they will need millions of PromoCards. These are purchased up front. As the success of the initial corporate deals become known there will be a neverending supply of corporate customers and repeaters.
Think of the profit margin of the PromoCard to CCI. A corporation needs 10,000,000 Cards for a promotion. Assume CCI discounts half to $1.25 each. That is $12,500,000 up front. 10% are activated for 1,000,000 using customers with PromoCards. They buy 5 CDs to generate over $5,000,000. 25% convert or purchase MusicCards at $9.99 or $2,500,000. They buy 20 CDs which generates over $5,000,000.
Not bad. A bunch of customers. A lot of money. No advertising. The corporation paid CCI for the privilege of obtaining CCI customers.
This is very simplified and I hope understandable.
Bob
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