How Far It Has Evolved! The Latest Examples of Digital Promotion

In recent years, digital promotions utilizing ID data from major platform providers have significantly evolved as a key strategy for "in-store promotions," which have grown increasingly important for companies, particularly FMCG (Fast-Moving Consumer Goods) manufacturers.

Dentsu Inc., Dentsu Digital Inc., and DENTSU PROMOTION PLUS INC. have established the digital promotion promotion team " Boostore," which selects optimal platform providers and delivers solutions across various clients' promotional domains.

Our previous article introduced the challenges and needs arising in POS promotions, along with new trends in digital promotions that address them. This time, based on actual use cases handled by the Boostore team, we share key points for successful digital promotions.

(From left) Mayu Iida, Dentsu Digital Inc. / Tenpei Ishii, DENTSU PROMOTION PLUS INC. / Hikaru Kato, Dentsu Digital Inc. / Moeko Abe, Dentsu Inc.

 Demand for "Frictionless" and "Payment-Integrated" Solutions to Simplify Customer Pathways Surges

──Could you briefly recap the Boostore project overview?

Ishii: We are a team working across the Dentsu Group in Japan to develop and propose comprehensive solutions that solve clients' marketing challenges in their stores and promotional areas. One major feature is our ability to provide solutions starting from data from various platform providers. Based on the concept of being "platform provider-free," meaning not tied to any specific platform provider, we propose optimal measures considering the client's product characteristics and needs.

──You work with diverse clients. What kinds of inquiries do you most often receive from companies looking to start digital promotions?

Kato: We broadly refer to sales promotions utilizing platform providers' ID data as " digital sales promotions." As campaigns using platforms like LINE and PayPay become more widespread, we sense growing awareness and interest in digital sales promotions among companies.

On the other hand, we increasingly receive inquiries about which platform provider to choose from the many available. Companies often struggle with deciding which platform to use and how to design their campaigns, given diverse needs and challenges like wanting to boost sales, needing tools for negotiations with specific retailers/distributors, or desiring to run ongoing campaigns based on a common ID.

──Are there any particular areas where you feel demand is growing recently?

Kato: We're seeing more requests for " frictionless " solutions that simplify the path to campaign participation. Traditional campaigns often involved cumbersome steps like collecting stickers and mailing them in, or obtaining receipts and uploading photos, which became bottlenecks to participation. Consequently, there's a growing demand for designing pathways that minimize steps and reduce drop-off rates. Examples include " payment-linked " campaign measures where purchasing eligible products with specific payment methods automatically enters customers into the campaign.

Dentsu Digital Inc., Mitsuru Kato

Enhance customer experience with low-cost, ongoing campaigns!

──Are there actual examples where you solved challenges related to "drop-off" or "frictionless" participation?

Abe: Our collaboration with a major beer manufacturer led to the creation of the purchase verification solution " SCAN DA CAN." This emerged from discussions about reducing customer burden and designing a more enjoyable campaign experience. AI detects the unique variations inherent in each can, performing unique identification and brand recognition. This allows the system to recognize each photographed can as distinct, awarding points based on the number of cans consumed.

Customers can enter the campaign simply by opening the can's lid and taking a photo. Furthermore, by playing an animation during the scanning process, we achieved a convenient and enjoyable entry experience. Other beverage manufacturers have also adopted this solution. We've expanded it to support containers other than cans and designed mechanisms allowing participation in games during entry, enabling us to run various campaigns tailored to client needs.

──Were there any particular points you focused on during solution development?

Abe: We rapidly improved the AI model's accuracy while the campaign was running. When scanning issues occurred, we not only fixed them in real time but also implemented new features during the campaign period as needed. Identifying and swiftly addressing improvements is how we enhanced accuracy. This ability to make rapid system improvements stems from the strength of our in-house development and implementation capabilities within the Dentsu Group in Japan.

Dentsu Inc., Moeko Abe

──Any customer feedback from the campaign that stands out?

Abe: We used IP characters in the animation that informs users of scan success or failure. Some customers deliberately failed the scan, displayed that screen, and enjoyed posting it on social media. We designed it so rare animations occasionally appeared, and those were also posted quite a bit on social media. It was really gratifying to see people enjoying the scan experience as part of their entry.

──How has the client responded?

Abe: Compared to traditional campaigns, this one is easy and fun to enter, so we anticipated an increase in entries. Furthermore, once the AI model is built, it can be reused repeatedly, which clients also appreciate from a cost perspective. As a result, it hasn't ended as a one-time campaign; they've continued to run campaigns utilizing SCAN DA CAN.

Achieved 100% KPI with a mileage program using LINE mini-apps

──In our previous article, we discussed how marketing trends are shifting from flow-based to stock-based approaches. Could you give us some concrete examples of stock-based digital promotions?

Ishii: Let me share a campaign example from a beverage manufacturer using LINE Mini Apps. The client utilized Boostore's " Apply via LINE " solution to run a comprehensive sales promotion campaign centered around their LINE Official Account. These efforts led to a steady increase in both new customers and sales. Their next challenge was a request to promote the loyalty and fan engagement of these newly acquired customers.

Therefore, we launched a mileage program via LINE Mini Apps. A mileage program allows customers to accumulate digital points each time they purchase a product and scan a barcode, which can then be redeemed for prizes. For beverages consumed regularly, we see tangible evidence of very high customer participation. This enables continuous communication with customers, facilitating the measurement of campaign effectiveness and the development of marketing strategies centered around customer IDs.

──What design considerations did you focus on for the mileage program?

Ishii: For example, we designed features that keep customers engaged, like a collection function where they earn special badges upon meeting certain conditions, and a tier system where their rank increases based on purchase frequency, allowing them to apply for tier-exclusive prizes.

Another key point was making purchase verification compatible across multiple channels. Beverages can be purchased through various channels like supermarkets, convenience stores, drugstores, vending machines, and movie theaters. Therefore, we made purchase verification compatible not only with receipts and QR codes but also, under certain conditions, with JAN codes and barcodes. This allows the mileage program to be used across all sales channels. Furthermore, since this system can be applied to various campaigns beyond just the mileage program, we've also updated the "Apply via LINE" feature for new customer acquisition campaigns to allow applications regardless of the purchase location.

──How has client feedback been?

Ishii: Clients are pleased with the tangible results, such as achieving 100% of KPIs within a year of the campaign launch. While the original goal was to foster customer loyalty and fan engagement, we've seen many customers making repeat purchases. We've also identified a significant number of users who actively scan barcodes or receipts daily to participate in the campaign multiple times.

Tenpei Ishii, DENTSU PROMOTION PLUS INC.

Contributing to the sophistication of mid-to-long-term marketing initiatives across channels

──Are there examples where you achieved payment linkage or frictionless experiences?

Iida: Yes, in a project with a beverage manufacturer, we received a request not only to drive new customer acquisition and sales growth through promotional campaigns, but also to leverage data obtained from these initiatives—with customer consent —to enhance marketing efficiency and sophistication. Furthermore, they wanted to promote improved digital literacy across the entire company, transcending departmental boundaries.

Therefore, we implemented a payment-linked point rebate campaign using PayPay. Simultaneously, we utilized Boostore's
We then used the simulation tool " SP COMPASS " to extract IDs with high campaign participation intent and target ad delivery. Analysis of the initiative results showed that IDs with high participation intent extracted via "SP COMPASS" also had higher actual purchase rates, receiving positive feedback from the client.

──Could you tell us about the key points of ingenuity in this campaign?

Iida: We designed the campaign to allow participation using a common ID across both offline and online sales channels. Customer behavior is becoming increasingly diverse. Where and when they buy varies, and so do their purchasing habits—some buy frequently in small quantities, others buy in bulk. Marketing must adapt to each customer's behavior. However, many organizations are functionally siloed, leading to fragmented data and insights.

By implementing this cross-channel initiative based on a unified ID, we can deepen customer understanding beyond online and offline boundaries. This not only enhances the efficiency and sophistication of marketing initiatives but also contributes to improving digital literacy across departments.

Mayu Iida, Dentsu Digital Inc.

Kato: Furthermore, digital sales promotion campaigns have proven highly effective in negotiations with retailers to secure shelf space. Awareness and interest in campaigns like LINE or PayPay are growing among retailers themselves, making campaign participation an added value in itself. Data shows that the placement rate for in-store POP materials for these campaigns is significantly higher than for standard POP, which also drives higher campaign participation rates.

For example, when FMCG manufacturers run cross-brand campaigns for dishwashing detergent, laundry detergent, toothbrushes, and soap, retailers benefit because these products are typically located in different sections, encouraging customers to browse more areas of the store.

──For companies looking to try digital promotions, what are the key points for making them successful?

Kato: While reducing friction by simplifying steps to campaign participation and designing incentives that motivate customers to join are fundamental, it's also crucial to expand the perspective to the medium-to-long term and consider what data should be accumulated and utilized.

Above all, campaigns rely on customer participation to succeed. Therefore, raising awareness about the campaign is crucial. It's vital to have an integrated campaign design that encourages customers to purchase the product, participate in the campaign, and continue using the product afterward.

Iida: The key is not to treat it as a one-off effort, but to accumulate and utilize data, then expand it to other marketing activities. Where should we advertise to encourage participation? Is in-store POP better, or digital ads? If digital, where should we distribute? Which segments should we target, and what copy should we use? If we can utilize this data to verify effectiveness based on metrics that actually lead to purchases, I believe we can achieve significant results over the medium to long term.

Creating New Trends in Digital Promotions with the Boostore Team

──Finally, could you share what the Boostore team aims to achieve and focus on moving forward?

Kato: Beyond the examples introduced today, Boostore offers various solutions, one being the "I Bought It Flag." This assigns a barcode to customers who pre-register, links with retailers' POS systems to verify purchases, and enables real-time incentive redemption. We plan to significantly expand the number of participating retailers nationwide soon, so we'll focus on making this available to more clients.

Abe: Regarding "SCAN DA CAN," we want to implement a system that instantly reveals whether a scan wins or loses, aiming to reduce the number of people who accumulate points but don't enter campaigns, or who skip participation because the process is too cumbersome. Also, while beverages are currently the main focus, we believe enabling individual item recognition for other products, like snack packages, will allow us to provide value to more clients. Therefore, we plan to focus on technological development, including AI.

Furthermore, we are considering overseas expansion in the medium to long term. We already have implementation cases in some countries and are actively developing systems for others. Since the platform providers and systems we can collaborate with differ by country, we plan to expand while carefully tuning our approach.

Ishii: My challenge is designing campaigns that encourage participation without incentives. While campaigns relying on "discounts" are mainstream now, I want to constantly brainstorm ideas that make people think "This looks fun!" or "I want to join!" We aim to create campaigns that not only boost sales and build brand awareness but also genuinely excite our customers.

Iida: I understand. It would be great to create mechanisms that encourage participation from a broader range of customers to prevent data bias. Also, even just in campaign design, trends in presentation and design are constantly shifting. I want the Boostore team to be able to create new trends in digital sales promotion.

Kato: Exactly. Platform providers are also evolving rapidly, developing new features and services. We want to collaborate closely with them to pioneer new trends.

Leave your in-store promotion concerns to Boostore!

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Boostore Official Site: https://boostore.jp