How long do you dare to wait?
Are you a chicken? How long do you dare to wait?
7-Eleven Denmark is the market leader within convenience retail in Denmark and has 220 stores. The 7-Eleven network includes high-street 7-Eleven stores, 7-Eleven DSB stores at train stations and Shell/7-Eleven petrol stations. In Denmark, 7-Eleven is in the forefront on digital and their mobile app is a success story both from a consumer engagement perspective as well as impact on sales, i.e. traffic to store.
7-Eleven challenged their customers previous week with an innovative app campaign.
For how long do you dare to wait – to redeem an offer on a Monster energy drink?
The mechanic was simple, yet powerful: the price of the Monster energy drink decreased day by day! However – you can only use it once and you need to use it before 500 other consumers use it... If you wait to long it´s gone.
The campaign started on Tuesday at the price of 15 DKK. Part of the campaign communication was the limited deals available: 500 units. Monster energy drink at 15 DKK is already a very good deal (more than 50 percent discount). However, on Wednesday the price would be even better; 10 DKK. And on Thursday 5 DKK. And if any available units on Friday the Monster energy drink would be FREE.
Would you have dared to wait until Friday?
Typically when these campaigns are run in retailer apps like 7-Eleven´s we see a volume distribution as indicated in the blue circles below, Mats Danielsen CEO of Liquid Barcodes explains. First day 15% of the available units are redeemed and then 30% on the second day and the remaining the third day. To date we have never seen a Chicken: how long do you dare to wait campaign where the product has become free the last day. There are simply too many consumers that do not dare to wait...
In this specific case with Monster energy drink 35% of the 500 available units were redeemed first day and the remaining 65% were redeemed on day 2. The Monster brand is obviously one part of the story. Another is the fact that the starting price point is already a good deal. The high level of consumer engagement 7-Eleven experienced is also of importance.
The mechanic is powerful with the consumers, but it is also a very good mechanic for the retailer and for the brand. Next time 7-Eleven is running a similar campaign they can adjust the price points if they want to test this out. Or they can run the same price points again, but on a product where the normal sales price is lower, e.g. a Coca-Cola 0.5L. For the brands this mechanic gives a lot of app impressions and thus brand engagement. The campaign data show that engaged app users are returning to the app multiple times during the campaign period to see if the coupon is still there and they are probably making the decision for themselves – "take it now" or "dare to wait until tomorrow"...
When 7-Eleven started the campaign on Tuesday they also posted on Facebook to make sure that all their Facebook followers knew about the deal and to use the opportunity to drive new app downloads. In fact this Tuesday gave 2x the number of downloads 7-Eleven typically sees on a Tuesday. Also on Wednesday downloads were significantly higher than normal. The engagement on Facebook was also overwhelming. The Facebook post generated 6x the activity (likes and comments) that 7-Eleven gets on an average post. It is clearly that the mechanic was well received by their followers.
This app mechanic is possible with Liquid Barcodes technology. Liquid Barcodes technology platform powers 7-Eleven´s app and connects it with their point of sale system through unique codes.
This mechanic will be part of the NACS Show educational session "Mobile marketing mechanics from the Nordics" October 18th where Coca-Cola European Partners´ senior manager digital sales and marketing Knut Anders Thorset will be speaking together with Liquid Barcodes CEO, Mats Danielsen.
Mats Danielsen, Founder and CEO of Liquid Barcodes will be on stage at the 2017 Handel und Wandel an Tankstellen und Convenience Stores Conference