Example of PromoCard useage.
Assume XXXXX wants to do a promotion but this time they decide to give something away instead of lowering their price. They work a deal with CCI for the PromoCard.
The PromoCard is a corporate giveaway in connection to the purchase of their product. It is designed to attract purchasers to their product over the others by the attraction of the promoted giveaway.
XXXXX decides to use the CCI PromoCard for it's quarterly promotion. It will be printed on inside of their 12 pack of beer cardboard container. The outside will advertise CDs for 10.99. See inside for details.
Inside will be a printed PromoCard with instructions for useage. Cut it out. Call in. Activate it. Buy 5 CDs. Then reload and continue.
Lets take a deal of this size and discount the PromoCard to .50 each.
What would be the distribution of XXXXX cardboard 12 packs for a quarter? I don't know either. Assume 10,000,000.
CCI gets $5,000,000 for the Card distribution.
Assume 2.5% activate the card--
250,000 PromoCards at 5 CD purchases= $1,250,000 assuming CCI makes $1/CD
Reloads to MusicCards at 50%
125,000 MusicCards at $9.99=$1,250,000
Now we have customers buying CDs regularly and reloading their
Cards.
It looks like CCI made 7,500,000 dollars, did no advertising, and got 125,000 new long term customers.
Keep in mind this is an example and the numbers used were for ease of computation.
PS---Once the corporate deals have time to generate through their complicated closing cycle, I believe we will see them regularly. |
