Budgeting for a Campaign with DiscountIF

Before running a campaign with us, our clients always shoot a number of questions about how they should budget correctly.

With the DiscountIF platform being a unique sales promotion tool which allows clients to offer their customers a reward based on the outcome of a football match, who blames them! Thus although a very innovative marketing tool, some of our potential clients have a hard time figuring out how to budget for such a campaign.

To simplify this further we’ve drawn out an explanation of the two different ways in which a club, or a client of ours, would need to budget in order to run a campaign. To put things into perspective we have outlined the costs one would expect when budgeting and discussed how our logic is applied.

The two ways in which the rewards powered through the DiscountIF tool may be presented are:

1) Fixed

2) Dynamic

For the below discussion we shall take the example of running a campaign with Everton FC. Therefore our tool would hypothetically be installed on Everton’s online merchandise store, showcasing offers which are linked to Everton’s upcoming fixture.

Fixed

When fixing the reward the client can calculate the exact maximum payout irrelevant of the outcome of the match. This is down to the fact that the client will offer a fixed £25 voucher.

As a result the client could take the assumption that even if all customers who purchase choose the same outcome, the maximum payout is £25 for every customer.

For example if the DiscountIF platform was installed on Everton’s merchandise website, the offers would be presented as follows:

With the selection and potential payout being distributed as shown below:

What is worth noting when issuing a fixed reward is that most customers will choose the more likely outcome as the value of the reward to be gained is the same for all selections.

Therefore 85% of customers will opt for the favourite, with 10% of customers choosing the second most likely outcome and very few customers, only amounting to 5%, will choose the least likely outcome.

Dynamic

However when it comes to dynamic rewards, the potential to win a greater reward is dependent on the likeliness of the event.

Because of this, the client will have different payout amounts. In our previous campaigns, it has always worked out to below the budget the client had designated for the campaign.

As a result, if for example the DiscountIF platform was installed on Everton’s merchandise website, the offers would be presented as follows:

With the selection and potential payout being distributed as shown below:

Thus, based on our research, 60% of customers will choose the favourite, with 30% choosing the second most likely outcome and 10% choosing the least likely outcome.

The above figures are based on previous case studies where we achieved a 16% increase in sales and had over 25% of customers who made a purchase opting-in for a DiscountIF offer.