The pandemic and the associated restrictions have affected the behaviour of society as a whole, including shop customers. Covid has also altered the marketing activities of manufacturers and importers. The introduction of social distancing and numerous restrictions have also had an impact on promotional campaigns, the effects of which we are still feeling today, as reported in this year’s „Promotion Monitor 2020” report. What changes are we talking about?
How has Covid changed promotional campaigns? Organising promotions during the pandemic
The economic lockdown, as well as the requirement to maintain social distancing and wear face masks in public places, has led to numerous changes in the way promotional campaigns are organised. Many organisers have had to discontinue their previous activities and adopt new ways of reaching customers. However, not every retail outlet has been able to adapt and survive this period.
Simplifying promotional offers
One of the most noticeable differences is the simplification of offers. As customers were often unable to physically visit a point of sale, the measures taken had to become more generic and widely accessible. Simpler forms of promotion enabled organisers to generate some sales. In turn, lower thresholds for offers made it possible to attract new customers during this difficult time. This was particularly important as negative sentiment amongst the public was growing, and the purchasing power of consumers and retailers had declined compared to pre-pandemic levels.
The move to online trading
It also proved necessary to reallocate funds from initiatives aimed at gaining market share to support regular sales. This resulted in a decline in the sales margin. Furthermore, there was an increased demand for online shopping and for dedicated content for digital communication. This gave customers the opportunity to familiarise themselves with the product without having to visit a high-street shop.
The low number of customer visits also led to reduced in-store sales support and a diminished role for cross-selling in home appliance and consumer electronics outlets. As a result, sales costs fell. Margins also suffered due to the cessation of direct efforts to stimulate sales.
Manufacturers who already had websites enabling customers to place orders can count themselves among the winners. With no other option available, orders from retailers – including those in the hospitality sector – as well as meetings with sales representatives, were moved online. It was also a time to review hygiene standards in catering establishments. Many establishments, particularly small ones, were forced to cease trading at that time.
Brick-and-mortar outlets that immediately launched online sales weathered the pandemic best. As it turns out, even after the lockdown ended, delivery orders remain very popular with consumers. This applies not only to the hospitality sector, but also to retail chains that decided in good time to introduce self-service checkouts, as well as to partner with companies specialising in food delivery.
The way in which B2B promotional campaigns are accounted for has also changed. Until now, sales representatives would visit points of sale to compile the necessary documentation. During the lockdown, it was the sales staff who were required to submit documentation detailing the tasks carried out as part of the campaign in which they were participating.
Conclusions of the 2020 Promotion Monitor
The Promotion Monitor survey is organised annually by the ARC Rynek i Opinia Institute. The results of these surveys can be used not only to analyse the current situation, but also to predict future trends.
At least a few conclusions of significance to us can be drawn from this year’s survey of promotional campaigns. First and foremost, we learn that physical contact with the buyer is not necessary to carry out a promotional campaign. For an offer to be convincing and competitive, it must increase the buyer’s overall benefit and ensure the security of the transaction. Campaigns such as ‘free product’, ‘money back’, ‘extra free’ or a ‘money-back guarantee if results are not achieved’ are therefore desirable. The report also provides new insights into the shared use of promotions, which are worth utilising in future campaigns.
The frequency of purchases has also increased. Most customers are buying products to stock up, precisely as a result of price-based promotional campaigns. Interestingly, the factor driving stockpiling itself has fallen by 8 percentage points to 41%. However, we will only know whether this is a lasting trend in a year’s time, when the survey is repeated. We should also bear in mind that demand in Poland is driven to a lesser extent by non-price factors or brand switching.
The findings from this year’s Promotions Monitor also show that certain customer behaviours remain unchanged, a fact that should be borne in mind when preparing a promotion. This is because customers tend to avoid providing their PESEL number on forms, paying fees for online promotional campaigns or receiving small cash prizes. Instead, straightforward offers and attractive prizes are the most popular.
The 2020 Promotions Monitor Report was based on a sample that excluded rural residents. Adopting this perspective allows us to draw some interesting conclusions, including regarding loyalty schemes. Taking only the urban population into account, as many as 75% Poles participate in them. The second most popular scheme, meanwhile, is the Rossmann Club.
The conclusions drawn from the survey may be helpful when planning a promotional campaign aimed at increasing demand amongst consumers. It is also worth noting another independent study by the ARC Rynek i Opinia Institute, the „Loyalty Programme Monitor”, which is also conducted on a representative sample of adult citizens. By comparing the results of both reports, we can draw some interesting conclusions.
W i360 We are involved not only in organising promotional offers, but also in the offers themselves loyalty schemes, competitions or promotional sales. We are responsible for optimising service processes, as well as legal, tax and logistical aspects. Furthermore, we independently monitor programmes organised in Poland and in other countries. Meanwhile, our proprietary management software and campaign implementation strategies are utilised not only in B2C programmes but also in the B2B sector.
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