Employee Incentives News: An Interview With: NDL Group’s Nick Deyong

Have you heard of The NDL Group? If the answer is no, we’re sure you will have heard of the brands they are involved with, from McDonald’s, TomTom, and KFC, to XBOX, Universal, IKEA and Russian Standard Vodka. The NDL Group o ers complex technology solutions such as the generation and verification of multi-territory promotional codes, alongside inspirational prize and reward content. Prize proposals for clients can be as diverse as dream holiday locations, jungle tours, helicopter rides or unique dining experiences. With loyalty the hot topic on everyone’s mind, we wanted to take the cream of the learnings from Nick Deyong, the founder of NDL.

Where was NDL borne from?

The idea for NDL came about when I was working in travel in the early 90s. Major radio stations were successfully running weekly promotions, but struggling to manage all the travel aspects for the winners. I spotted a gap in the market for an agency specialising in ‘winner experiences’. How do you make an effective promotion? To make a promotion effective, there needs to be a clear definition of the specific goal the promotion is required to deliver. Where in the decision process are you needing to incentivise the customer? For example, if you are running a car promotion, are you clear whether the goal is to deliver the final sale, or increase numbers of test drives?

What are the ‘tried and tested’ incentives?

Cashback is a tried and tested formula, which has a successful role in a number of industries. For example, in consumer electronics, cashback promotions can be used to shift stock in order to make
way for a new product line, or to maintain RRP when competitors are dropping prices.

We’ve been running cashback programmes for years, so for a new client, we can o er an immediate o the shelf package through our PromotigoTM platform. Critically, we can deploy cash payments in real time, across multiple markets in the local currency. This ensures the money hits the customer’s bank account in their own currency, without incurring any bank charges. It also cuts the time required to validate the claim and make the payment, which is a much better customer experience. Access to real-time analytics across multiple territories is increasingly on our clients’ agenda.

How do you make an effective promotion?

To make a promotion effective, there needs to be a clear definition of the specifi goal the promotion is required to deliver. Where in the decision process are you needing to incentivise the customer? For example, if you are running a car promotion, are you clear whether the goal is to deliver the nal sale, or increase numbers of test drives?

If insight shows that a scalable number of test drives will lead directly to sales, then the focus should be on nding an engaging incentive for the target audience that prompts a sign up to the test drive. The ongoing sales process should then convert into the sale. The promotion would be too stretched if the task were to deliver both goals through one mechanic. First we start with the big idea. It’s the headline that catches the attention of the brand owner, media owner or agency we’re working with. Next we look at every element required to deliver it, from practical, legal and technical perspectives. Finally, after a few tweaks, we check that every detail of the prize resonates with the target audience, ts the promotional theme and still works as a headline.

What can promotions achieve for a brand?

Promotions can be successful in driving sales away from the competition, incentivising trial, increasing shelf space in a specific retailer or rewarding customer loyalty. Running an inspiring, well- targeted prize promotion can help achieve real standout from a brand’s competitors. The prize theme and relevance to the brand supports their point of difference, and can help sway purchase decision away from a seemingly similar product. By really understanding what motivates the audience, the winning combination of appealing prize content with a slick, simple prize entry mechanic can help drive sales by rewarding multiple or repeat purchase.

When market research or customer insight leads the brief, a promotion can be created to prompt a specific behaviour. If a cereal brand wants to launch a new product, and insight shows that tasting the product is the best way to convert into future sales, then sampling mechanics such as ‘Try me free’ or ‘Buy your regular product, and get a free sample’ will help achieve those goals.

Are there any types of promotions that you started out doing that you don’t really do anymore?

Answers on a postcard, please! Thankfully the days of sackfuls of postcard entries are almost
over. Some promotions requiring skill-based answers can result in small mailbags, but more often than not there are online routes of entry, or content generating tasks using social media. It’s a great demonstration of how technology has helped the industry become more advanced for both the agency and the end customer.