The Power of Sampling

Transcription

1 The Power of Sampling

2 CHAPTER ONE: Understanding the Power of Sampling What is Sampling? Everybody wants to find products they love. So why not take advantage of it? Sampling is when you give away small amounts of your product in order for your brand to gain attention and interest. It s difficult to get noticed in a market crowded with similar products. The greatest product in the world still stays on the shelf if nobody knows its there or is willing to risk purchasing something new. Smart brands like Procter & Gamble have known this for years. In they underwent a drastic change in perspective, seeing sampling as a long play, a foundational strategy no different than other forms of traditional media. A.G. Lafley, Chairman, President & CEO of Procter & Gamble, described a customer cycles as a series of moments of truth. Sampling helps accelerate the first moment of truth, product examination, by proactively placing it within their hands, and speeds the customer along to the second moment of truth, where an actual purchase is made. 2 1 AdAge

3 What is ecommerce sampling? First, a little bit about how we at Exact view the process behind sampling When a brand offers a small amount of free product we define this as a trial. This can either be offered to the general public or to a select group. When a customer consumes or uses the sample, that is considered a conversion. If the customer likes the product enough after consuming the sample, it accelerates the buying cycle to get them to purchase sooner than they would otherwise, either as a repeat customer or as an entirely new buyer. Ecommerce sampling is when the sample is placed alongside an online order and shipped directly to the consumer. Sampling, when done in this manner can elicit strong reactions When I saw it in my box, I was like, I have to try it. So, I did. And OMG!!! I loved it. Jessica Sending samples through ecommerce allows your brand to enter the home and delivers your sample as close to the point of use as possible. More so than distributing samples through direct mail, in-store, or on the street. Ecommerce sampling, is one of the most scalable and cost-effective methods of sampling products. We at Exact Media have seen this first hand as our metrics have shown it to be an effective method to drive product trial, conversions and lead to new buyers. 3

4 CHAPTER TWO: Importance of Sampling The psychology of Instant Wins Sampling has a profound effect on the whole customer experience. Instead of a long, drawn-out consideration and decision-making process, consumers get an instant win by taking advantage of a risk- and cost-free sample of a product that was delivered right to their doorstep. All barriers for trial are removed. All the customer has to do now is enjoy the free sample and decide if they want more. This win also plays into the actual purchase. It lowers the customer s initial reservations about the product. They ve already tried it before, so there is less of a barrier to purchase. 4

5 Reach The reach of your sampling campaign depends upon the format that you use. In-store or live samples depend largely on the amount of foot traffic in the store itself, and on the demographic makeup of said consumers. Stores and locations have to be chosen carefully if you want to maximize the campaign s return on investment. Mail-order sampling or bundled sampling has the benefit of reaching much more people than an in-store campaign, and with a higher chance of reaching your intended market. You still have to choose your partner distributor properly, but you can infer that a consumer ordering from your partner is both actively interested in a brand complementary to yours and is willing and able to make a purchase. 5

6 CHAPTER THREE: Case Studies and Benchmarks for Ecommerce Sampling Exact has run multiple ecommerce sampling campaigns across a range of industries and product categories. We ve built up a wealth of data about the impact ecommerce sampling has on your business and the kind of ROI you can expect. Exact Media has collected over a quarter million data points on sampling, These benchmarks can help your brand understand how your campaigns perform relative to your peers Benchmark Trial & Conversion Rates 6

7 In addition, we have consistently found that samples bundled with a coupon delivered significantly higher trial, conversion, and new buyers. According to our campaign and corresponding survey data 2, as compared to campaigns that did not include a coupon, campaigns with a coupon averaged: 18% better trial rates, 20% better conversion rates and 39% better new buyer rate 7 2 n=49,739 respondents, confidence interval +/- 1 at 99%

8 CHAPTER FOUR: Best Practices To Run Your Sampling Campaign Use the correct product format In order to maximize conversions, you have to set up your programs for success.. You sample product should be superior to the competition in at least one area, and your messaging should highlight that advantage. Ensure that consumers have enough of the product to see the benefits of your product. For example, if your skincare product takes 7 days to work, give the consumer 7 days worth to try. Match sample with correct retailer Choose your retail partners wisely. Work with retailers that have at least some obvious connection to your product so that the customer isn t confused about your sample being in their package. Bundling effect Bundling product samples together can provide cost efficiencies, and makes intuitive sense for some categories. A natural choice is to bundle product samples that are designed to be used together in a regimen, such as shampoo and conditoner. Include a coupon Coupons incentivize the customer to further action and gives them an incentive to go into store to purchase. Coupons also remind the consumer about the product, the same way collateral does, except that consumers are more likely to keep a coupon that they plan to use in the future. This is especially important for new buyers co-packing samples with coupons delivers a 53% 3 improvement in new buyer rates vs. a sample alone. 8 3 Internal Data for Campaigns run by Exact Connections

9 Incorporate ratings and reviews Include testimonials and ratings from other consumers into the sample package. There are many ways of incorporating this effectively--from highlighting user reviews on the packaging, or including a tear sheet with a collection of comments. This simple inclusion will give you deeper customer insight and more transparent campaign results. For best results, use reviews from either other similar consumers, or prominent influencers that the consumer respects. You can even provide a method for the consumer to give their own review, in exchange for another sample or discount coupon. Why are ratings and reviews important? Several forms of ROI occur at different levels of review volume, extending beyond conversions. SEO and increased search traffic as well as product suggestions & insights come from increased number of reviews. 4 1 review could mean up to 10% sales lift, with 50 reviews typically leading to 30% lift. More product reviews leads to more purchases. 5 Ecommerce sampling vs other sampling methods Ecommerce sampling is one of the most scalable and cost-effective methods of sampling products, but it s also just one of many sampling methods. How does ecommerce sampling stack up against other traditional sampling methods? 9 4,5, Bazaarvoice Conversation Index Volume 8 pg 11, 13

10 Ecommerce sampling vs other sampling methods Vs In-venue sampling Vs Subscription boxes Advantages Reaches consumers in a more personal setting (i.e. their homes) in a highly targeted fashion Targets purchasers with real buying intent based on verified shopping behavior. Disadvantages Harder to distribute fresh or perishable samples. Subscription boxes have room for multiple samples and are cheaper to ship than direct mail. Vs Street sampling Less implied risk to sample since it comes from friendly retailer. Harder to geotarget than with street sampling Vs In-Store sampling Reach consumers in a more personal setting and is perceived as a bonus reward for making a purchase Harder to distribute fresh or perishable samples. Vs Direct Mail sampling 100% open rate since linked to an actual purchase May be cheaper/faster to execute depending on campaign size

11 Measure the effectiveness of your sampling campaign Marketers need to quantify the performance of every campaign. This is as true for sampling as it is for AdWords. Fortunately for you, there are established industry methods for tracking results, so you can get some idea of which campaigns work and which need to be retired or modified: 1. Surveys The most effective survey is a twostage survey, one at the moment of trial and one after one purchase cycle. Benchmarks are useful for establishing how well your campaign is doing compared to the norm. If you don t yet have established internal benchmarks, you can make use of official Exact Media benchmarks instead. 2. Strategy and Results Many people think of sampling as a strategy to to win new customers. It does that, pouring new buyers into that bucket. But sampling also serves to plug the leaks. An average of half of all buyers we see are current brand buyers. Sampling reminds them how good this product really is perhaps they ll buy more, perhaps they ll buy earlier. Sampling is effective at both customer acquisition and retention, an important idea to keep in mind when planning your campaign. Conclusion Sampling is one of the most effective methods for getting your brand noticed by consumers. It s so successful because it works on so many different levels: psychological, sociological, economic, and practical. In fact, it s hard to see why a product-based business wouldn t benefit from conducting a sampling campaign. If you do it right, it can offer returns far greater than any advertising or direct mail campaign can ever deliver. The formula is simple: increased customer delight = increased sales. 10

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