$7 Million - The Cost of Not Having Prize Coverage
While this year’s football Big Game proved to be a one-sided affair between Seattle and Denver, many thrilling big plays gave fans the excitement that the scoreboard failed to provide. Each year, companies looking to tie their brand to the Big Game buzz turn to SCA to maximize their marketing budget with promotions designed to inspire action and reward customer behavior. And, reward we did!
SCA Promotions paid out more than $800,000 in cash, prizes and rebates to our clients’ fans and customers for big plays that occurred during the Big Game, including an interception and the second half opening kickoff returned for a touchdown. We were excited about the success of these promotions, and our clients were even more excited to have us as a safety net with prize coverage.
Prize coverage ensures that regardless of the prize amount or value, your marketing budget won’t be on the hook for covering the payout. Your financial responsibility is only the predetermined fixed fee with companies like SCA, which is a fraction of the overall amount. For budget-conscious marketing executives and directors, prize coverage is the ideal solution for small and large promotions. However, not everyone chooses this route.
A Houston furniture store owner decided to forgo prize coverage for his promotion – a decision that cost him $7 million. He offered his customers who spent more than $6,000 in the two weeks leading up to the game a full refund on their purchase if Seattle won.
Fortunately for the customers and the business owner, he had the funds to back up his promotion, but many companies don’t have that type of financial flexibility. Think about the money this furniture owner could have saved using prize coverage.
In the short and long term, these promotions have proven to create buzz around the brand, bring more traffic into stores, motivate customers to make a purchase now, and build brand loyalty. Furniture Mart in northern Colorado experienced the same payoffs after its Big Game promotion. For the second year in a row, the company ran a promotion with SCA in which customers would receive full refunds if a kickoff was returned for a touchdown. Furniture Mart refunded its customers their purchases.
The difference between Furniture Mart and the Houston furniture store was prize coverage. Furniture Mart received all the residual benefits of a promotion at a fraction of the cost. No risk—all the reward. “Securing promotional risk coverage is the way to go,” said a representative for Furniture Mart. “It allows us to sit back and enjoy the game hoping for a big win for our store and customers.”
Want to learn more about using prize coverage for your next promotion? Contact SCA and speak directly to one of our reps to discuss options and next steps.