'Tis the Season
11/30/17
It’s that time of year again, when all of us bombard customers with holiday marketing messages. From Pumpkin Spice Lattes to Nutcracker tickets, seasonal specials are everywhere. But do these once-a-year offerings have any impact on the long-term engagement of customers?
PSLs are an example of the many short-term offerings that brands utilize in hopes of capturing sales growth over the long term. A study conducted by the NPD Group in 2014 showed that nearly 3/4 of pumpkin spice latte buyers purchased the ubiquitous drink only once that season … but those same buyers spent almost 20% more per transaction than non-PSL drinkers, a trend that makes those customers more likely to get hooked on additional products and come back during other times of year.
Short-term promotions can have a long-term impact on the bottom line. Research by BrandLoyalty indicates that limited-time loyalty promotions drive an average of 8.8% increase in sales during the promotional window, and a continued 1.3% increase in the weeks after the promo ends, indicating a change in shopping behavior.
Here on Broadway, we ran a seasonal promotion this fall to incentivize moderately engaged Audience Rewards members to make another ticket purchase. Within 3 days of launching the campaign, we saw a 50% lift in average daily ticket purchases from targeted members, and an even higher lift in dollars spent at 64%, driven in part by a 9% increase in average ticket prices. The trend continued in later weeks as well, with increases across the board for the duration of the campaign.
Looking ahead, we’ll continue to leverage limited-time promotions in an effort to build ongoing loyalty, including the launch of a new program to be unveiled this spring. Until then, happy holidays from Audience Rewards!
Learn more about Audience Rewards at www.AudienceRewards.com.
PSLs are an example of the many short-term offerings that brands utilize in hopes of capturing sales growth over the long term. A study conducted by the NPD Group in 2014 showed that nearly 3/4 of pumpkin spice latte buyers purchased the ubiquitous drink only once that season … but those same buyers spent almost 20% more per transaction than non-PSL drinkers, a trend that makes those customers more likely to get hooked on additional products and come back during other times of year.
Short-term promotions can have a long-term impact on the bottom line. Research by BrandLoyalty indicates that limited-time loyalty promotions drive an average of 8.8% increase in sales during the promotional window, and a continued 1.3% increase in the weeks after the promo ends, indicating a change in shopping behavior.
Here on Broadway, we ran a seasonal promotion this fall to incentivize moderately engaged Audience Rewards members to make another ticket purchase. Within 3 days of launching the campaign, we saw a 50% lift in average daily ticket purchases from targeted members, and an even higher lift in dollars spent at 64%, driven in part by a 9% increase in average ticket prices. The trend continued in later weeks as well, with increases across the board for the duration of the campaign.
Looking ahead, we’ll continue to leverage limited-time promotions in an effort to build ongoing loyalty, including the launch of a new program to be unveiled this spring. Until then, happy holidays from Audience Rewards!
Learn more about Audience Rewards at www.AudienceRewards.com.
Originally published in Broadway Briefing.