What is a Reverse Auction?
Most major broadcasters and print mediums in the UK use premium rate numbers to generate revenues from competitions. The competitions can be as simple or complicated as required and designed to primarily drive revenues, build databases or combine the two. Reverse auctions have consistently been the best performing competition mechanic over the last 12 months and typically receives three times the response that traditional simple one question one answer promotions.
A Reverse Auction is based around the lowest unique bid winning the item being auctioned.
This service can be run at any price point; a typical price range is from £0.50 to £1.50, dependent on the value of the lot, though we have found that users are not particularly sensitive to the price point. Users text in the keyword followed by their bid in pence. For example if they bid £4.56 they will text in '456' The user will then receive various response messages back. During the promotion iTouch will react dynamically to all incoming text messages and bids with the appropriate responses designed to maximise the interaction with the customer and also update them on the status of their bid plus any other upcoming scheduled events.
Experience shows that big ticket events such as cars and holidays work best. While "low value" items are typically less successful at generating large levels of response in print media however our focus groups suggest gadgets should work very well with techno savvy audience, particularly when the items are unique or difficult to obtain. Signed merchandise from a celebrity or famous pop star makes the promotion more attractive. In the past iTouch have worked with record labels to get signed iPods or PSP's In the right circumstances artists will even donate their personal play lists to the promotion. Also we can include an additional 'everyones a winner' mechanic whereby anyone entering the promotion would get back twice the entry costs back in value as a runners up prize.
Promotional Expertise
iTouch has a lot of experience running promotions in many different mediums and will provide expert guidance on artwork, prize sourcing and manage the entire event end to end. iTouch works closely with the media owner to ensure prizes are compelling and relevant to the audience. The media team will assist the media owner to ensure the promotional copy and marketing collateral clearly explains how the auction works but also motivates the audience to participate.
Data Generation
While competitions represent a valuable revenue stream database generation is also a positive by product. Once a caller has sent a text to the promotion he/she have transacted with iTouch and therefore are 'soft opted in' iTouch will be able to manage mobile marketing strategies to users to promote additional and similar services to this database.
Service Set Up and Account Management
Once the service has been set up by iTouch we would agree the open and close dates for each auction. Once the service has been set up the mobile platform can be programed to select the winner's mobile number. iTouch will contact the winner and take down the name, address and contact telephone number. iTouch would contact and arrange delivery of the prize.
Reporting
iTouch can provide a comprehensive range of reports dependent on the clients requirements. iTouch will advise the client on the level and frequency of reporting to be provided. Reports can normally be provided as follows:
- Frequency: Daily, Weekly and Monthly
- Detailed by Number promoted and sub-grouped by volumes, time of calls, average duration and revenue
- Geographical Analysis of originating calls
- Analysis of 'repeat' calls
Click here to see a list of previous winners
