The challenges of lower LSM consumer competitions and an ideal prize solution


The challenges of lower LSM consumer competitions and an ideal prize solution

Lower LSM (Living Standards Measure) consumers are far more difficult to cater for when running competitions. Reason being that lower earning markets have different interests to those of higher income brackets and also less leverage to contribute any additional money (no matter how small) in order to claim or redeem a prize.

The 4 major issues include:

  • A lack of transport – Lower LSM groups predominately use public transport so winning an experience or adventure activity that requires transport is an inconvenience.

  • Welfare gap – Interests vary based on the LSM and even culture of the consumer; higher LSM consumers prefer luxury prizes whereas lower LSM consumers appreciate practical prizes.  

  • Inexperience or lack of education – A prize as extravagant as an overseas travel package can daunt lower LSM consumers as they do not have experience with travel, do not know what to expect and cannot afford to contribute to the experience (such as paying for tours or transfers).

  • Delivery difficulties – Most low LSM winners stay in rural or township areas making it difficult, expensive and sometimes impossible to deliver actual product prizes.

The ideal solution, for markets such as these, is mobile vouchers that can be sent directly to the winner’s phone. Courtesy of advances in till point technology; this is now an option. The consumer simply enters via an SMS short code (as per normal) and if selected as a winner is sent a voucher via their cellular phone that may be redeemed in-store at the pay point.

The vouchers have the capacity to be store specific (redeem at any Checkers), brand specific (redeem your Levi jeans at any Edgars branch) and also have the capacity to offer discounts on specific items (redeem this voucher on your next purchase of product X and receive R10 off your purchase). The technology is not only market changing but offers brands a practical and cost effective solution to lower LSM competitions and promotions.

For more information on mobile vouchers contact Prize Voucher Agency on This email address is being protected from spambots. You need JavaScript enabled to view it.

Tags: Customer Rewards, In-store Competition, Prize Fulfilment Solutions, Prize sourcing, Custom prize packages, Prize suggestions

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