About ConsumerTrack™
The research is conducted by IMI International, the only research company that offers specialised research for the short-term marketing and promotions industry.
IMI International is a market research company specialising in the promotions and short-term marketing industry, and as such is the only one of its kind in Australia.
We operate globally; our Australian office is located in Melbourne. IMI was founded in North America in 1971, conducting market research for the promotions industry, and started operations in Australia in 2001. We have a worldwide data base of over 10,000 marketing initiative studies.
Promotions in Australia is a $5 billion industry. In the past year, more than 75% of Australian consumers have purchased a product because of a promotional offer, and almost 44% have done so in the past 30 days.
The current ConsumerTrack™ edition is the latest in a series of research reports that IMI has compiled since 2001. It provides invaluable facts about consumer attitudes towards the many elements that go into promotions, it also provides historic data to enable you to see how the market has changed over time.
The research covers marketplace trends, current market activity, and many unique topics.
Details about the research are set out below. If you would like to participate, please complete the subscription form. We look forward to welcoming you as a subscriber.
What the research covers
The research findings from a series of aspects of promotions - the magnitude of prizes, favourite themes for prizes, entry mechanics, type of competition - all lead to one conclusion...it pays to use fact-based research rather than "gut feel". Many of our findings are counter-intuitive, illustrating again that promotions wisdom is not common sense or flair, but rather that it comes from studying established facts about the way consumers react to various situations.
Top five inducements
The whole purpose of a promotion is to persuade a consumer to purchase your product (sometimes switching from their usual product) in order to enter a promotion. Using research based on aided statements, we found that the top five factors that most persuade a consumer to purchase are:
- The perceived chance of winning
- The promotion is easy to participate in
- Only having to buy once to enter
- That you know instantly whether you have won or lost
Changing behaviour
An attractive promotion is one of the most potent weapons in the campaign to persuade the consumer to try your brand. But before consumers will make the switch, they must know:
- What is being offered (prizing)?
- What do I have to buy (to take advantage of the promotion)?
- What do I have to do to get it (secure the benefit)?
How many prizes is the optimal number?
Our latest research has revealed some invaluable information on this vital question. It has shown what transpires when you move from one big prize to two, or three, or more, and the point at which diminishing returns sets in. It also provides evidence on a related question: more prizes or multiple draws?
Strong preference for instant win
There is a unanimous preference for instant gratification as against delayed gratification, and this is highest in the younger age groups.
Preference for value above chance
Our findings led us to compile a very significant quadrant analysis, using Instant vs. Delayed as the north/south polarities, and chance/value as the west/east. The Instant/Value quadrant turns out to be the most favoured one, but it is also interesting to see in which quadrant some of the most used promotions fall.
Most likely to switch brands
We investigated 14 familiar types of competition and ranked them in order of preference with consumers. The most popular types of promotion are those that are more immediate, represent less work for the consumer and provide added value. While those that are less immediate and require greater effort on the part of the consumer are the least popular.
Impact on purchasing decisions
A highly significant pie chart shows the relative effectiveness of tactics and experiences in persuading consumers to purchase your brand. Refer to Section 4.0 of the report. Instant wins lead the field by a clear margin, followed by experiential marketing and "A TV commercial that you really enjoy".
Our 15-point checklist for your prizing
Successful prizing is not just a matter of the dollar amount or the promotional theme - to make the most of a promotion, you should consider a long list of variables, such as how it fits with the image of the brand, whether it provides freedom of choice, and whether the prize is distinctive and memorable? Our 15-point checklist is a useful discipline as well as a reminder.
Be aware of the enduring prizing favourites
Our latest research has confirmed that the enduring prizing favourites maintain their appeal, in this order:
- Money prizes
- Travel
- Home entertainment
- Cars
- Music/concerts
Our analysis by age group shows some notable variations.
How much to budget for the prizes
An invaluable chart derived from our "Win what you want whenever you want" shows that the response to higher and higher monetary prizes (from $50 to $1 million) does not increase evenly, but that it rises more sharply at some critical points rather than at others. For example, there are sharp increases in the response rate as prizes approach $10,000 and $50,000, but the increase flattens out after that, with the rate of increase surprisingly sluggish right up to the $1 million mark.
Insured prizes
It is interesting that consumers will respond to a "chance to win" prize (involving another draw) almost as well as they do for a promotion promising an outright win. In addition, you can achieve further savings by insuring the prize.
How effective are "money-can't-buy" experiences as prizes?
We tested five "special and rare experience" prizes (e.g. meet your favourite actor, or travel on the space shuttle) against traditional prizes such as free groceries or free petrol for a year and found that the latter came out comfortably ahead.