Why Asking Consumers to Buy More Can Strengthen Your Brand’s Next Promotion

A Closer Look at Digital Promotions Strategy

Our recently released 2022 Digital Promotions Report outlined five key variables for effective promotion design and how those variables shift in importance depending on which stage of the promotion journey the consumer is in. Based on more than 100,000 promotion offers and three years of campaign data, the report’s insights help tell the story of what makes an effective promotion. 

Today, we’re taking a deeper dive into one of the report’s more fascinating recommendations to help advertisers understand the levers they can pull to boost promotion performance and provide shoppers with value at a time when it matters most. 

Keep reading as we explore the nuance behind a promotion’s required purchase quantity, and don’t forget to download the full report below. 

Understanding Required Purchase Quantity

Simply put, required purchase quantity is the number of individual products a consumer must purchase in order to redeem a promotion. Think of this like a “Save $1.00 on Two” deal in which the required purchase quantity is two.

Our data suggests that consumers understand the relationship between offer value (the dollar amount saved by redeeming the promotion), required purchase quantity and the price of the promoted product. When designing a promotion, brands should understand how often their products are typically purchased and used by consumers in order to determine a purchase quantity that makes sense. 

When done right, a higher purchase quantity can increase promotion impact by as much as 100%. Our analysis shows that consumers will assess the required purchase quantity of the promotion based on the product category and their typical buying habits. For some categories, such as perishable foods, increasing the purchase quantity above normal buying behavior actually decreases the overall promotion redemption rate. After all, there is only so much cheese a family can consume in a week. 

By contrast, brands can increase the required purchase quantity for nonperishable items—such as canned cat food and other shelf-stable products—while still seeing attractive redemption rates as long as the effective discount (the percentage of savings relative to the full price of the product) remains compelling. 

Raising the required purchase quantity from one to two presents the biggest barrier for consumers. If they deem the category and effective discount to be sufficient, however, consumers will readily activate and redeem promotions that require them to purchase multiple products. In fact, consumers who activate promotions with required purchase quantities greater than two redeem those offers at higher rates. This means that in suitable categories, advertisers can leverage higher required purchase quantities alongside attractive effective discounts to move a higher volume of redemption units.

We hope you enjoyed this closer look at required purchase quantity and how it can impact promotion performance. Ready to get started on planning your next promotion campaign? Reach out to our team at hello@quotient.com.