Why CPG Companies Should Partner with Retailers for Promotions

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CPG marketers typically run promotions for one reason: to sell more of their product.

But when you’re running sweepstakes or contest promotions, you often need retail partners to make your promotion a success. The main things CPG marketers need from retailers are:

  1. Sales data, to see if the promotion drove a sales lift

  2. Email lists, to market the promotion to the retailers customer base

  3. In-store ads, to drive awareness of the promotion in-store (end-caps, signage, etc)

The problem is retailers have no real reason to provide this information to CPG marketers. 

There’s nothing in it for them.

To get retailers on-board, CPG companies need to provide value.

How CPG Companies Can Provide Value to Retailers

There are two main ways you can provide value to your retailer partners when running a sweepstakes/contest promotion — and really, you should do both.

1. Make an Exciting Promotion

Retailers are more likely to get behind a promotion that’s exciting or fun because it will energize their customer base. Whether you’re giving away a great prize, or you’ve turned your promotion into a game — exciting promotions will always get more retail support.

2. Make the Promotion Benefit the Retailer

You’re running a promotion to drive a sales lift. But what’s in it for the retailer? Building value into your promotion is a great way to get retail support. Here are some ideas, depending on where you sell your product:

Retailers

  • Grow their audience with incentivized email opt-ins

  • Encourage loyalty registrations, with perks for loyalty sign-ups

  • Reward loyalty usage, with extra chances to win for purchases made through their loyalty program

Grocers

  • Grow their audience with incentivized email opt-ins

  • Drive trial of new items, by rewarding for specific product purchases

  • Increase basket size, by increasing rewards for larger purchases

  • Increase purchase frequency, by perks for purchases made within the promotional period

Restaurants

  • Grow their audience with incentivized email opt-ins

  • Increase combo sales, by rewarding for combo purchases

The Bottom Line

Getting retailers involved in your promotions will help drive better results, but you need to make the promotion mutually beneficial. 

If there’s no reason for retailers to get involved, they won’t.

Make your promotion exciting, and provide value to your partners by adding features that help achieve their business goals (as well as yours).