Guide to Product Sampling in the Digital World. -...

Guide to Product Sampling in the Digital World. WHITEPAPER FROM THE REDPEPPER LAB

PREPARED BYredpepper.land

http://redpepper.land

2PRODUCT SAMPLING WHITEPAPER

04 / Top 7 Categories of Sampling Tactics

05 / 6 Key Insights & Lab Learnings

03 / Product Sampling

Chocked Full of Goodness

07 / Case Studies

11 / Conclusion

12 / Appendix


Let’s Start with the Basics

One of the most effective tactics in the history of product marketing, “sampling” is when brands give consumers portions of their product to try - for free.

Though once reserved for food items, product sampling is now being utilized by brands across a variety of industries, from cosmetics and beauty to home improvement and technology. These brands are also finding creative and innovative ways—beyond traditional in-store sampling and direct mail—to distribute those samples, utilizing channels like social media and e-commerce to reach larger audiences and create engaging experiences for potential customers.

Effectiveness of Product SamplingSampling is so powerful because it can do what no other marketing strategy can: put a physical product in customers’ hands. Sampling not only allows brands to introduce consumers to a product and increase brand awareness; it also offers the opportunity to encourage conversion to sales, increase sales overall, and eventually, establish enduring brand loyalty. And it works.

Sampling in the Digital WorldBut — you ask — everything’s moving online! Does sampling, an old-school direct-mail tactic, have a place in this digital world? Absolutely. In many ways, sampling is the perfect complement to e-commerce, which has made shopping easier and more convenient but shields us from opportunities to discover, test, try, taste, and feel — the fun parts of shopping. This is where online sampling can come in and fill that void.

“FREE SAMPLES” is theBIGGEST INFLUENCER4TH

for purchasing beauty productsafter past purchasing experience, recommendations from friends

and family, and price.

PRODUCT SAMPLING WHITEPAPER 4

Top 7 Categories of Sampling TacticsBrands can get samples to consumers through an assortment of avenues, from basic in-store sampling and direct mail to online sweepstakes and giant social campaigns.

What makes the world of sampling so interesting and potentially innovative is that these individual sampling tactics can be combined with each other and with other marketing strategies (like advertising campaigns) to dramatically increase their conversion effect. This results in an endless variety of sampling options available for brands to execute, based on their own objectives and challenges.

The myriad of sampling tactics available to brands can be grouped loosely into 7 major categories, which can then be supported by marketing, targeting, partnerships, and packaging tactics.

In-Person. Provide samples to consumers in-person. Costco is perhaps the most well-known sampler, distributing samples to eager customers in their stores. Redbull hands samples out at events like concerts and sports games. Coca-Cola uses creative means of distribution like interactive billboards and vending machines.

Direct Marketing. Mail or email samples or coupons for free samples to consumers, unsolicited. AOL directly mailed so many floppy disks in the 1990s that at one point, an estimated 50% of floppy disks in the U.S. had AOL logos on them.

Bundling. Physically bundle samples with other products. P&G and Unilever both physically bundle items together. General Mills includes various samples inside its cereal boxes.

Gift with Purchase. Provide samples to consumers when they purchase another product. Sephora sends 3 free samples with every online purchase—and even lets customers pick which 3 they want.

Gift with Action. Provide samples to consumers when they perform a designated action. Amazon, Crate&Barrel, and many other retailers give customers free gifts when they register for a wedding or baby shower.

New Product Offerings. Offer samples as a new consumer product. Many brands allow consumers to directly order a sample by filling out a form on a brand’s website. Behr and several other paint brands provide a “sample size” option (for a free or reduced price) on their e-commerce sites. During the holiday season, Lancome bundled samples together to create an “Advent Calendar” of samples, which they sold in stores.

Social Sampling. Leverage the power of social networks, both on- and offline, to generate earned media, increase engagement, and gain followers in exchange for distributing samples. Several brands, like Oreo, Secret, Kleenex, and Kind, have launched campaigns that send samples to anyone who tweets a specific actiontag. A TON of innovation is happening in the social sampling world.


6 Key Insights & Lab LearningsBefore implementing a product sampling program, brands should carefully consider the following key insights, which we developed as a result of our research and findings from redpepper’s Innovation Lab.

01.

02.

Get excited and take advantage—people really like free stuff.In our Lab tests on sampling, users were extremely receptive to free sample offers—even if that offer was targeted to users currently loyal to a competing product. Opt-in rates (those who selected to enter their personal information in order to receive a free sample) ranged from 41% to 82% in realistic test scenarios; in surveys we conducted, an average of 71% would be excited to receive samples AND actually use them.

Establish a clear objective, measure, and iterate.Spend time thinking about what you’d like your sampling program to accomplish. Ultimately, the purpose of sampling is not just to give away free samples; it’s to generate brand (or product) awareness, convert consumers from trial to purchase, increase sales, and gain new, brand-loyal customers. Focus on the end result, and design your sampling program accordingly. Lastly, measure the effectiveness of your program by checking back to your objective, and keep improving it.

Be relevant. Target the right audience—at the right time—with the right offer. Sampling can be an expensive tactic but an incredibly effective one when done right. First, focus on the most likely new customers, rather than those who already love your brand or those who will never love your brand. Second, make your offer relevant. Don’t hand out toothpaste samples to consumers walking into a nightclub; they’ll either toss it or, worse, feel confused and annoyed. Lastly, make it easy to accept. Consumers won’t go too far out of their way to get a sample, especially if they don’t think they really need it.

03.

$ $200% INCREASE IN

SALES of the food items it samples

Costco sees as much as

PRODUCT SAMPLING WHITEPAPER 6

6 Key Insights & Lab Learnings

04.

05.

Invest in packaging to increase conversion. Use branded packaging to clearly communicate from whom the gift is being delivered, and why. Consumers want to know who sent a package and what’s inside, especially if it’s received unexpectedly. In our Lab tests, the only times users felt negatively about receiving a free sample were situations in which they did not understand who the sample was coming from, what it was, and why they were receiving it. Most importantly, invest in packaging design to increase conversion. You can do this by designing unique packaging that increases “surprise and delight” and including package inserts: personalized thank-you notes, discount coupons for future purchases, additional product samples, or other free gifts.

Leverage the power of personal and partner networks to maximize reach and simplify execution.Consumers’ social networks are incredibly powerful--both because of their sheer size and the strength of the relationships within them. The reach of your initial effort can be magnified if content is sharable, whether online or offline. Kleenex, as demonstrated in the case study above, leveraged social networks extremely well, encouraging consumers (those initially reached by their advertising) to send samples to their friends (those who might not have otherwise been reached by the campaign). Partner retailers or other brands have similar networks that can be leveraged to increase the reach of your sampling campaign.

Furthermore, leveraging the power of these personal and partner networks is a win-win strategy that can reduce the effort required for execution of your sampling campaign. Let others do the work for you! For example—each of Birchbox’s brand partners achieves its goal of getting samples into the hands of likely consumers without having to actually distribute the samples, while Birchbox benefits from the subscription service revenue and enhanced brand affinity.

Create an engaging experience to establish enduring brand loyalty.Just as an advertising campaign on its own is no longer enough to market a brand, the basic distribution of samples is no longer enough to convert consumers to purchasers. Getting the sample in the consumer’s hand is half the battle—having them use it and purchase a full-size product is another one altogether. Conversion from trial to usage to purchase is a funnel that requires intention and planning. To maximize the effectiveness of your sampling program, be creative, start a conversation, and craft an engaging experience around the sample.

06.

81% OF CONSUMERS SAID

that they are more likely to try a product after they get a FREE SAMPLE

(Opinion Research Corporation)


Strategy: Oreo’s sampling campaign was very specific: launch two new flavors of cookies, limited-edition Marshmallow Crispy and Cookie Dough, by distributing 20,000 packages through social media.

They designed a social sampling campaign accordingly. During the 2014 Grammy Awards, the brand aired a prime-time TV commercial that featured a custom jingle by artists Tegan & Sara and a call-to-action: customers could get first access to the new flavors by following Oreo on Twitter and tweeting “#SendMeOreo,” which triggered a direct message from the brand that included a request form. The brief

campaign drove 5,000 tweets per hour, led to 15k new followers, and helped get Oreos into the hands of 20,000 engaged social customers.

Why It Worked: Oreo’s product launch was so successful because it was laser-focused on the objective--launching a new product by generating attention and driving trial. Because the flavors were “limited editions,” Oreo built excitement and anticipation around the two flavors, made the offer limited and exclusive, and used social media to engage with (and collect information from) potential customers.

1 Case Study: OreoSOCIAL SAMPLING STRATEGY


2 Case Study: KleenexSOCIAL SAMPLING STRATEGY

Strategy: Kleenex’s “Softness Worth Sharing” social sampling campaign, launched during cold and flu season, let consumers send mini-boxes of tissues to friends and family by signing up at more than 900 participating retailers or sending a coupon for free samples to Facebook friends. The Kimberly-Clark Corp. promoted the social sampling through TV, print, digital and social media advertising, which resulted in 1 million samples fulfilled and a 3.9-point market share lift.

Why it Worked: It was a highly relevant and timely campaign. Kleenex successfully targeted the right audience—people with runny noses—during the right time—cold and flu season—with an offer that simply made sense—tissues! Additionally, Kleenex leveraged a powerful human emotion—the joy we feel when giving gifts to our loved ones—in their “pay-it-forward”-type campaign, which allowed them to distribute samples through consumers’ personal networks and gain some positive earned media in the process.

PRODUCT SAMPLING WHITEPAPER9

3 Case Study: BirchboxSUBSCRIPTION SERVICE STRATEGY

Strategy: Birchbox, founded in 2010 by Katia Beauchamp and Hayley Barna, is a monthly service that delivers a box of carefully-curated beauty samples to women for $10—the first of the popular “subscription boxes,” which disrupted the world of sampling. The start-up’s incredible success was due, in part, to the conveniently-delivered, personalized samples; but what really drove growth was the experience of Birchbox—customers loved receiving the beautifully-packaged box of surprises each month. And Birchbox re-engages customers and encourages conversion by incentivizing online product reviews; users earn points for each review they write, which they can credit towards purchase in Birchbox’s e-comm store. And by encouraging both influential bloggers and the average consumer to share their “Birchbox experiences” with the world via YouTube, the company is creating an army of brand advocates.

Why it Works: Birchbox has been so successful because it does more than just get samples into consumers’ hands. It delivers a delightful, personalized experience that encourages customers to return again and again to the brand, building love and loyalty along the way.


4 Case Study: Coke ZeroINTEGRATED SAMPLING CAMPAIGN

Strategy:During the 2015 NCAA Final Four in Indianapolis, Coke Zero (a major sponsor) provided several different sampling experiences for fans, each one innovative and representative of a different consumer touchpoint. This “city takeover” included:

• Billboard + Sampling Station: A giant 26-by-36-foot “drinkable” billboard was designed to magically dispense ice-cold Coke Zero from a massive contour bottle through 4,500 feet of tubing that spells out “Taste It” before carrying the caramel-colored liquid down to a free sampling station.

• Competitive fan experiences: Throughout the tournament, Coke Zero encouraged fans from rival teams to register through an app as “frenemies.” At the weekend’s concert, select frenemies from opposing teams used the microphone in their phone as a straw to see who could finish virtual bottles of Coke Zero; the battle was projected on two digital screens near the stage. Winners won free 20-oz. bottles for their team’s fans in the audience.

• Partnerships, commercials, and video boards: Coke Zero partnered with Shazam to develop a “drinkable” Coke Zero

commercial. The spot encouraged viewers at home to use Shazam’s app to watch a glass on their phone fill up with Coke Zero as it’s poured from a bottle on TV. When the glass filled completely, participants received a mobile coupon for a free 20-oz. bottle of Coke Zero at participating retailers.

• Advertising campaign: All of these sampling activations were part of the brand’s overarching advertising campaign, “You Don’t Know Zero ‘Til You’ve Tried It,” which, as the name suggests, was geared towards driving trial with every individual ad.

Why it Worked: Coke Zero focused on more than just sample distribution, executing a massive, integrated sampling campaign that leveraged multiple consumer touch points and engaged fans with fun, original experiences. This approach generated more excitement, earned media, and engagement around the brand than would have a more passive approach—much more beneficial to the long-term success of Coke Zero.


Conclusion

The endless variety of options can make the execution of a sampling program feel daunting. But it doesn’t have to be! If you’re not currently sampling, begin with the logistically-simpler, tried-and-true tactics: (1) in-person sampling, (2) direct mail, and (3) bundling. If your goal is to implement something more innovative, explore the world of social sampling—a strategy being creatively executed by some of the world’s top brands.

CONTACT:Samara Anderson | Marketing Director [email protected] redpepper.land

PREPARED BY




Appendix


Sampling TacticsTHE FOLLOWING IS A COMPREHENSIVE LIST OF SAMPLING TACTICS, GROUPED LOOSELY BY 11 TACTICAL CATEGORIES, THAT BRANDS ARE CURRENTLY USING TO SAMPLE THEIR PRODUCTS.

TacticCategory Who’s Using It?* (CFG Brands & Retail Partners)

*not a comprehensive list

IN-PERSON(Provide samples to

consumers in-person.)

Distribute samples to customers in the store (at checkout or while shopping).

Mail unsolicited samples directly to consumers (at random or targeted).

Costco, Publix, Kroger, Sam’s Club

AOL, Tylenol, Motrin, Pepcid, Neutrogena, Aveeno, Evian, Band-Aid, Splenda, Nicorette, Listerine

Open a physical pop-up shop to distribute samples (store-within-a-store, kiosks, motorized vehicles, etc.).

Send an unsolicited email offering a free sample to consumers (at random or targeted).

Best Buy, Nordstrom, Sears, M&M

Distribute samples via vending machines, billboards, or other creative means of distribution.

Coca-Cola, Unilever, Granata Pet Food

Distribute samples at events hosted by others (trade shows, expos, marathons and other sporting events, festivals, concerts, etc.).

Host a special, branded event and distribute samples to attendees.

Viacom, Asics, Brooks (and most athletic brands), Dunkin Donuts, POM, Emerald Nuts, PowerBar

P&G, Pup-Peroni, Ben &Jerry’s, iHop, Perkin’s

DIRECT MARKETING(Mail or email samples

or coupons for free samples to consumers,

unsolicited.)

BUNDLING(Physically bundle

samples with other products.)

Add samples in the packaging of another product (drop-in sample).

P&G, General Mills, Kellogg’s, Mars

Add samples to e-comm shipments. P&G, Unilever

Physically attach sample to another product (i.e., a sample of conditioner attached to a full-size bottle of shampoo).

P&G





GIFT WITH PURCHASE(Provide samples to

consumers when they purchase another

product.)

Offer samples to in-store shoppers at checkout.

Allow consumers to order a sample by filling out a form (or survey) on a brand’s website.

Sephora, Cosmetics Market, Macy’s, Beauty brands (Clinique, Bobbi Brown, etc.)

Coca-Cola, Oreo (allows customers to customize), Starbucks, L’Oreal, L’Occitane, Lancome, Centrum, Purina, CeraVe, Emergen-C, Truvia, Nivea, Breathe Right, Depend, Kotex, Cottonelle, Nexcare, Bumble & Bumble, Nordic Naturals, PetCurean

Offer online shoppers a free sample at checkout.

Develop a microsite to promote the brand and allow consumers to order a sample by filling out a form.

Nordstrom, Sephora (and many beauty brands)

Behr

Develop a customer rewards program and send/offer samples to members based on their purchases.

Sephora, Betty Crocker, L’Oreal, Starbucks

Send/offer samples to consumers who register online (i.e., a wedding registry, baby registry, rewards programs)

Send/offer samples to consumers who order a related item online (targeting).

Amazon Baby Registry, Amazon Family

(i.e., Suggested items on Amazon)

GIFT WITH ACTION(Provide samples to

consumers when they perform a designated

action.)

NEW PRODUCT OFFERINGS

(Offer samples as a new consumer product.)

Allow consumers to order a sample online by adding the sample to their cart and then entering a coupon code that makes the sample item free.

Amazon Prime + Gerber (partnership)





NEW PRODUCT OFFERINGS (CONT.)

(Offer samples as a new consumer product.)

Bundle samples together to create a new product offering (i.e., an “Advent Calendar” of samples).

Allow consumers to send samples and a personal message to their family/friends by tweeting or posting a branded actiontag on social media.

Lancome

Kleenex, Cottonelle, Kind

Allow consumers to sign up online to receive customized packs of samples on a regular basis (subscription services).

Allow consumers to send samples and a personal message to their family/friends through the brand’s website.

Birchbox, Barkbox, etc...(~900 subscription box companies)

Kleenex, Yogi Teas

Allow consumers to sign up online to receive samples on a regular basis (subscription services).

P&G Everyday

Send/offer samples to consumers who like/follow a brand’s social media site.

Send/offer samples to consumers who tweet or post a branded actiontag on social media.

Sephora, Jenny Craig, American Eagle, Seattle’s Best Coffee,

General Mills, Old Spice, Oreo, TaylorMade, Secret + Dollar General (Partnership), Dove + Degree + Axe + Influenster (Partnership)

SOCIAL SAMPLING(Leverage the power of

social networks, both on- and offline, to generate earned media, increase engagement, and gain

followers in exchange for distributing samples.)

Offer individual samples for a low price by offering a “sample size” option for existing products.

Behr, Taste of the Wild dog food (via k9cuisine.com)


Supporting TacticsTACTICS THAT CAN BE COMBINED WITH ANY OF THE ABOVE TO INCREASE EFFECTIVENESS


*Not a comprehensive list

MARKETING(Use marketing tactics to increase the effectiveness

of sampling efforts.)

Support all of these tactics with marketing in order to broaden reach, provide a call to action, and augment conversion (print/tv/social/digital advertising, contests/sweepstakes, events, earned media strategies like hoopla and guerrilla marketing, etc.).

When distributing samples, target the consumers most likely to convert (based on demographics, past purchasing behavior, or other consumer characteristics). Targeting is especially important when the sampling objective is to grow the category.

Redbull; most brands that sample do this

Most brands that sample

Customize samples for individual consumers in order to increase conversion.

Birchbox

Provide consumers with samples; film those consumers testing the product, and use the results to market the product. Be creative. Repeat.

P&G (Febreze, Swiffer), Coca-Cola

TARGETING(Use targeting tactics to

increase the effectiveness of sampling efforts.)

PACKAGING(Use packaging design to increase the effectiveness

of sampling efforts.)

PARTNERSHIPS(Leverage the power of partners to increase the

effectiveness of sampling efforts.)

Creatively package the sample to increase conversion and surprise/delight.

Partner with a retailer to execute any of the above tactics, mailing/offering samples (in-store or online; targeted or not) to customers through that retailer.

Birchbox, Oreo, POM

Amazon, Kroger, Walmart, Target, Publix, Wegman’s, Sephora, Ulta, Nordstrom, Macy’s, PetSmart, Magazines, etc.(Most brands that sample do this)

Include a bounce-back coupon with the sample in any tactic to increase conversion.

Partner with USPS to send free samples to consumers via direct mail.

Most brands that sample do this



*Not a comprehensive list

PARTNERSHIPS (CONT.)(Leverage the power of partners to increase the

effectiveness of sampling efforts.)

Partner with subscription box brands to provide a sample in their boxes (or even sponsor a month’s box).

Provide samples to social influencers in exchange for reviewing/promoting the brand.

Boxes: Birchbox, Barkbox, etc.Brands: 500+ for Birchbox alone

GE

Partner with social influencers to provide samples to their fans (influencers provide samples to their followers via direct mail, a contest, etc.).

GE

Partner with Uber to deliver free samples to consumers.

Mellow Mushroom

Partner with Try.com, which allows members to try different brands’ products by clicking a “try now” (similar to “pin it”) button in their browser.

Provide samples to brand ambassadors in exchange for reviewing/promoting the brand.

Apparel brands, including Nike, Neiman Marcus, Zara, Reformation

P&G Everyday, Frye

Redbull

Partner with influenster.com, which distributes samples and other rewards to its members based on their social media influence; members must review the samples and share online.

Partner with brand ambassadors to provide samples to consumers (ambassadors provide samples directly to consumers).

Supporting TacticsTACTICS THAT CAN BE COMBINED WITH ANY OF THE ABOVE TO INCREASE EFFECTIVENESS

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