Companies that didn’t want to erode brand value with heavy discounting last year still had to sweeten the deal somehow to court money-conscious prospects and customers. Enter the premium, which ranged from low-cost goodies such as clocks and tote/duffel bags to more substantial rewards like Wii gaming consoles and $50 gift cards.
Which sector leaned on premiums the most between January and November 2009, according to the Who’s Mailing What! Archive, the Target Marketing Group’s direct mail library and research service? That would be financial services, pulling out the stops to bring on new customers, followed closely by publishing. While the fundraising vertical outpaces its mail-using brethren in terms of volume, it finishes third to last when it comes to using premium-based offers. Freemiums, also referred to as up-front premiums, are where the action’s at for fundraisers.