For over a century, when large-scale retail and industrially manufactured products established themselves, the idea of awarding a prize, a reward that gives gratification has been one of the main ways of boosting consumption, creating loyalty, generating empathy and last but not least collecting data. And at a difficult, unusual time like the one we are now going through, cementing relations with consumers has become more necessary than ever.

Prizes as a stimulus to sales was discussed (online) on 1 December in the webinar entitled “The irresistible attraction of rewards”, organised by PTE-Promotion Trade Exhibition, the event devoted to advertising items, promotional fabrics and personalisation technologies, and by HOMI, the lifestyles trade fair.

What products are in greatest demand and what gives target customers the greatest pleasure? Competition prizes designed to boost sales can take various forms: the offer of a reward for making a purchase and the chance of winning a prize, are the first stages in an engagement process aimed at establishing a relationship between brand and customer. Rewards after a long or short process of collecting points or tokens can be of significant value, and they promote brand loyalty as well as encouraging the customer to spend more – and more frequently.

Starting from the assumption that the concepts which matter today are: energy saving, respect for the environment, Italian quality and hygiene, “the rewards market is an extensive one and can go beyond expectations,” says Andrea Demodena, head of Promotion Magazine, introducing the subject.

“It is difficult to establish what can be considered as a reward, and it must be stressed that loyalty activities generate significant revenues but are tied to a market that as of this year has been operating in a new scenario. It has been calculated that some seven million Italian households switched retailer during lockdown, and that 49% of them signed up to the rewards programme of their new retailer. It is worth remembering that when it comes to Italians and rewards programmes, 40% are there to collect points in order to have an actual physical reward. After lockdown the propensity towards investments in advertising and engagement instruments by stores and retailers was 41%. (Source: Loyalty Observatory figures for Nielsen Consumer Panel 2020).

Not just a purchase, but loyalty and a relationship with customers

Diego Toscani, CEO of Promotica, a leading agency in the loyalty market in Italy, explains that consumers are increasingly mindful of environmental issues. It is no longer enough to simply stick a green label on something: now there is a demand for clear, transparent information. “The whole issue of loyalty is periodically called into question, along with its purpose as a little act of kindness that the brand shows consumers in order to derive the maximum benefit. We now live in an age of data management and artificial intelligence, so loyalty needs to have innovative elements connected to its ability to gather and process data. Organising a loyalty activity,” Toscani says, “involves gathering information that consumers are willing to share and helps to anticipate the choices they will make so that even more effective, attractive schemes can be run. One theme that features prominently in loyalty is sustainability, a trend that brings benefits, together with the theme of Italian quality, which is highly advantageous for retailers.” The agency’s mission is, in fact: “to turn the store’s customers from mere spectators into protagonists, and generate a positive impression through the ‘wow’ factor, in an ongoing process of involvement with the brand.” It is important always to keep in mind concepts of sustainability, personal care, individual gratification, style (through useful and also beautiful objects designed and made in Italy), and the comfort generated by objects “that make you feel good”.

What matters is establishing stable relationships over time, ones that go beyond the actual moment of purchase. As Diego Toscani points out: “loyalty is a way of holding on to your customers, even in times of difficulty.”