Why is it so important to campaign for mental market share? There are three dynamics:
- Existing customers need affirmation and refreshing of memory structures too; if you don’t, probably more customers will leave (for their own particular reasons);
- You need to find new customers to maintain market share; depending on the market (decrease / increase) at least the number of lost customers;
- If you want to grow you will need to get more new customers than you loose to buy your brand in the same period.
Let’s do the math for the National Postcode Lottery. It is part of Novamedia, which charity lotteries raised over 715 million euros for charity with the tickets sold in 2017 making it the world’s 3rd largest private charity donor in the world.
The National Postcode Lottery spends roughly 40mio-50mio euro in media (TV, Radio, OOH, Print, DM, Online) each year, deducted from Nielsen. It has around 3 to 3,5mio households in it’s database and has an annual turnover of around 500mio. An estimated 40% is donated to charities, 40% is price money, leaving 20% for running the business (ca 100mio).
The campaign investments are mostly spend on the game encouraging people to play (acquisition, up sell) and showing who won how much money where in the country. The lottery market has been saturated for some years now. Still millions of euros are spend when growth (option 3) is not really possible.
The best option then is campaigning for mental market share among existing and potential customers to maintain market share (option 2). Roughly 10% of each ticket is invested in media in order to keep members playing and gain some new customers to replace lost clients. This can not be done with below the line communications, like e-mail, alone. In order to keep people playing the opportunity to win and – implicitly – the fear of exclusion must be conveyed (if you don’t play and your neighbours do, they will win everything and you are ‘out’ for the rest of your life).
Because the database is this big (almost half of all Dutch households) and revenues are substantial, mass media campaigns and even branded content (tv programs) are created. And charities keep benefitting. Brand and seeming acquisition campaigns do contribute to loyalty indeed.
The National Postcode Lottery is active in The Netherlands, Sweden, the United Kingdom, Germany and Norway: