Who, when asked the question, would you like more, would ever say no thanks? Unless, of course, you are being offered something that you did not want in the first place, or you are offered an extra serving of food and are already completely full!
However, the principle of offering more is what bonuses are all about, and in the world of marketing, they are a sure-fire way of getting positive consumer engagement with consumers.
A Win-win Marketing Tool
The great thing about bonuses, when used correctly, is that they can be beneficial for both customers and companies. Customers can get all kinds of bonus offers, ranging from free products to free delivery or extra bonus add-ons.
Sometimes, a bonus is triggered when customers spend over a certain amount, recommend a friend, or make a purchase after not having done so for a long time. Companies can use bonuses to stand out from the competition, encourage customer loyalty, or shift slow-moving stock, amongst other things.
The Core Strategy of the Marketing Mix
Bonus promotions are one of the core principles of the marketing mix and are used by almost all marketers at some point. Even the most exclusive and upmarket companies that do not offer price discounts can be found offering bonuses.
They are universally recognized as a great way to build customer relationships, positive brand reinforcement, and drive sales. Bonuses are not only used by companies that sell products. They are often central to an employment contract, too.
Many companies offer a base salary or hourly wage with the promise of bonus payments to tempt staff to work for them or retain staff who might be considering changing employers. These work-related bonuses can take the form of commission payments to encourage staff members to make more sales or can be a profit share based on team or overall company performance.
They are usually designed to make employees feel valued and often paid as a lump sum at the end of the year, making them stand out from regular earnings. Other companies use bonus promotions in a variety of ways. One industry sector that is renowned for offering bonuses is online casinos.
When customers have so much choice, online platforms have to do everything they can to make their virtual casinos more attractive than the competition. While customers look for their favorite games and need to feel assured that they are playing on reputable and reliable sites, they also want to make sure that they are getting the best possible bonuses.
Online Casino Competition in Canada
In Canada, the choice of players is vast, and the market is fiercely competitive. Canadians love to have a flutter, and it is estimated that around six in ten Canadians gamble every month. They like to play all kinds of games and can wager on the lottery, place sports bets, or play online casino games and slots for real money.
Any savvy player looking for the best online casino bonuses in Canada needs to look no further than Casino.org, a site where all the bonus deals are curated for easy comparison. The casinos attract customers and reward loyalty, while the players get more free spins, sign-up bonuses, and all kinds of other benefits.
Potential Risks of Bonus Promotions: Challenges in Food and Supermarkets
Companies must be careful with how they position their bonus offers, or they can be subject to criticism. This is particularly true of the bonus offers in the grocery store, where users can ‘Buy One and Get One Free.’ These BOGOF promotions can be incredibly attractive.
However, when used on perishable goods like food, it can result in high levels of wastage. Consumers find themselves overstocking on the item because it was a bargain but then throwing it away because it had spoiled before they had a chance to use it.
When extra free product promotions are offered on processed foods, these options can look more attractive than those that are healthier. One of the most controversial bonus offers was McDonald’s Super Size meal deal, where customers were asked if they wanted to increase their portion size. This could be a great offer if people only occasionally bought a meal deal with the fast-food chain.
Super Big Me: McDonald’s Lessons and Reconsiderations
However, in 2004, Morgan Spurlock lived exclusively at McDonald’s for a month, filmed it, and made the movie Super Size Me. When asked if he wanted to take the bonus food offering, he always said yes and documented the dramatic effect it had on his health and well-being.
This led to McDonald’s removing the option from its menu. However, twenty years later, at a time when people are looking for better value, it has been reported that the chain is considering reintroducing the offer. It will be interesting to see how this goes down and whether two decades is long enough to forget.
Unpopular Bonus Discounts
Sometimes, bonus offers look like they will benefit both the company and the customer but end up one-sided because they have not been thought through properly. If this is detrimental to the customer, the offer will usually just not be taken up.
An example of this would be a brand offering customers a free item where they only have to pay for the postage and packing. However, postage and packing are actually more expensive than buying the product in a store, so there is no benefit to having them.
Failed Brand Bonus Cases
However, a poorly calculated offer can be disastrous for brands and the most famous such bonus offer is probably the Hoover free flights promotion. Back in 1992, the UK vacuum cleaner company offered customers spending over £100 two free flights to the USA.
It was meant to be an eye-catching boost to dwindling sales, but it led to the destruction of the company, multimillion-dollar losses, and a shredding of customer trust. The package was worth £1,200 for £100 expenditure.
The company thought only a tiny percentage of customers would jump through the hoops to claim the bonus. However, it was such an attractive offer that millions of people bought Hoovers they did not need and were happy to jump through as many hoops as it took to get the offer.
So, while bonuses work, they need to work both ways. Otherwise, they could fall flat or could actually wipe a company out.
