Financial benefits for your business are hiding under your next promotion.
Businesses both large and small always look for ways to increase their revenue; that is, those that want to be successful. While many tactics come and go, it’s amazing what promising to give away $1 million does for your sales. And that is exactly what McDonald’s figured out in 1985 when it first launched its Monopoly Promotion.
In recent years, McDonald’s sales were not so positive. In fact, there were continued concerns about food safety in locations in China and Japan and overall sales plummets across the franchise. CNBC reported in a January 2015 article that a 1.7 percent drop was expected in domestic in-store sales that year. Many argued factors for this could be McDonald’s expansive menu and its fight against recent attacks of its quality of food. While this article also called out the company’s “lackluster promotion,” reports of increase in sales with the Monopoly Promotion has proven success for the food chain over the course of time.
Whether or not you agree that McDonald’s standard marketing campaigns are ineffective in comparison to previous years, their annual Monopoly game is one that continues to help draw people to the restaurants across the nation and participating stores worldwide. And, not to mention, this promotion continues to draw attention even though our society is moving digital in more and more aspects of our lives. Additionally, even though the McDonald’s Monopoly Game does offer an online Sweepstakes option, more people utilize the Collect and Win part of the game.
This campaign has continued to thrive for decades and has now become a part of the McDonald’s brand. What makes it so great? First, even though the cash prizes are substantial, the odds of winning them are a bit more difficult. History has proven it is not impossible to win, but because of consumers’ desire and hope to win $1 million, they continue to go back to the store for more to increase their chances.
After creating this marketing effort in 1987, the coordinators did not have to do much to reinstate it year after year. The game pieces and the board come with little changes even though the prizes can vary. One thing stays consistent: You can always win money and food. And winning free food means your participants are coming back for more. A strong contest will generate returning customers; that is exactly what this does for McDonald’s.
So, what are some of the results of this yearly campaign? In 2010, The Star noted in an article that a McDonald’s key sales figure went up 5.6 percent in the U.S. In 2013, CBS News reported that the Monopoly Promotion increased its third quarter profit of that year by 5 percent. It also strengthened its chains in the U.K. and Russia, according to the publication. The Christian Source Monitor confirmed this with their August 2013 post mentioning that moving the promotion to July instead of September helped to increase sales by 1.6 percent in the U.S.
There seems to be more financial hope for the fast-food master chain in 2016, and we believe this year’s McDonald’s Money Monopoly Promotion will once again help to increase revenue. If you are having issues improving sales in your own business, consider drumming up a promotion that will attract new and existing customers back to your product as we begin a new quarter.
Photo: Flickr: Mike Mozart