redemption rates

Promotional risk: How should Hoover have assessed the financial side of the promotion?

In a previous blog post we recounted the details of the Hoover free flights fiasco, which ultimately cost the business £48m and its independence (it was bought by Candy 6 years after the launch of the promotion). How can you make sure that your brand does not find itself in the same situation? The short answer Read More

Promotional risk: a matter for the board?

Promotions and promotional risk have typically been considered by the company Board to be low-risk activities which can easily be handled by Marketing departments and their agencies. If things go wrong, Marketing will sort it out. After all it’s not really even our problem: it’s the agency’s, isn’t it? Sadly, if a promotion does go Read More

Choosing a promotional risk management provider

You’ve decided you want a third party to take on some of the risk in your sales/consumer promotion. The next step is to approach a provider who can help you put in place a fixed fee contract or arrange over-redemption insurance. How do you find a provider? There are a number of promotional risk management providers Read More

Which promotional risk management solution?

There are three options available to brands (promoters) when assessing how best to manage promotional risk: self-insure, over-redemption insurance and fixed fee. Which one is best is a question we’re often asked… Unfortunately, there is no right or wrong answer. It very much depends on a number of different factors including: the brand’s attitude to Read More

Three ways to manage promotional risk

There are three commonly used ways for managing the financial risk inherent in consumer promotions: self-insure, over-redemption insurance and fixed fee contracts. Which option is right for your organisation and its brand(s) needs careful consideration and it will change, regularly. It ultimately hinges on understanding your organisation’s attitude to risk in general and promotions in Read More

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