What the Luck is Going On?
Turning shopping into a promotional game has huge potential.
In a test, researchers discovered that promotional games increased conversion rates by anything from 42% to 213%. Even after accounting for any promotions, it also increased average order value (AOV) by a substantial margin.
Are You Down on Your Luck?
If so, introduce an element of chance in your marketing campaigns that randomly assigns the discount a potential customer might win. Gamify your promotions, and you’ll boost purchase amounts and conversion rates.
What’s Going On Here?
According to the research, luck provides a confidence boost and induces a positive action-oriented state. So priming people with luck-oriented ideas such as a lottery or a risky financial option not only propels consumers to act, but also promotes greater risk-taking and optimism.
People also demonstrate a tendency to attribute good luck and positive sentiment to an object or event (people pay more for lucky charms and are willing to pay more for products with lucky prices or a lucky number of objects). When people associate a store with a lucky event; their affinity for the business also increases.
More Information Please:
The research had four important implications:
- Discounts obtained from promotional games generate higher conversion rates and overall spending, ranging from 42% to 213% across their studies.
- The sales increase was driven by more consumers buying as opposed to a smaller group of consumers buying more.
- The evidence suggests promotional games may be a cost-efficient way to increase customer loyalty and drive brand equity since conventional wisdom holds that discounts and price-promotions can destroy brand value.
- Although promotional games elicit more positive reactions relative to straight discounts regardless of product type, the effect is more pronounced in pleasurable product categories (e.g., flowers, designer clothing, chocolate).
Source: Stefan J Hock, Rajesh Bagchi, Thomas M Anderson, Promotional Games Increase Consumer Conversion Rates and Spending, Journal of Consumer Research, Volume 47, Issue 1, June 2020, Pages 79–99