Driving customer acquisition and purchase frequency via a Buy & Try promotion

The location: EMEA

As a global leader in technology, Samsung is a company renowned for its innovation in transforming the world of smartphones, TVs, wearable devices, tablets, digital appliances and much more.

The challenge

In 2019, Samsung released its first foldable phone, leading the way in folding screen technology. It now has several devices in its premium Galaxy Z Series, including the Galaxy Z Fold2 5G and Galaxy Z Flip 5G, followed by the later iterations, the Galaxy Z Fold3 5G and Galaxy Z Flip3 5G.

The consumer electronics industry is a highly competitive market, with Samsung being one of three giants that dominate the sector. However, recent data showed that, on average, a third of consumers would consider switching brands when making their next purchase. This situation creates an opportunity for Samsung, seeking to convince new consumers to switch to their brand while retaining their existing market share.

In seeking to drive new customers and upgrades to Samsung’s latest and most premium range, the brand engaged Opia to design and deliver a new promotion.

The solution

Opia created a Buy & Try campaign to reduce buyer hesitation to an unfamiliar product range, focusing on the Galaxy Z Fold2 5G and the later models, the Galaxy Z Fold3 5G and Galaxy Z Flip3 5G. By offering a 60-day trial when one of these models was purchased, the promotion gave customers confidence in their purchase decision, whether they were new customers or returning ones. If the customer was unhappy with their purchase at any point during this period, they could claim their money back.

Opia ran the Buy & Try promotion in ten countries in 2021, including the UK, France, Norway, Sweden, Denmark, Finland, Switzerland, Spain and Portugal. The promotion supported the relaunch of the Galaxy Z Fold3 5G and Galaxy Z Flip3 5G in August 2021 and drove the sales of the existing Galaxy Z Fold2 5G.

Opia provided a fully managed sales promotion service for Samsung, from designing and implementing the promotion to taking care of all returns and collections. The claims process was managed entirely online and out-of-store, removing any additional workload from Samsung’s employees or retail partners.

The results

Our Buy and Try sales promotion helped drive sales on the Galaxy Z Fold 2 & 3 5G handsets, with the majority of registrations made on the premium model. Furthermore, our customer insights revealed that the promotion had a positive impact on Samsung’s customer base, showing new customers acquired and an increase in purchase frequency.

Our survey, completed by participating customers, further highlighted the impact of the promotion. 66% of respondents reported that the promotion influenced their purchase (very) strongly.

Meanwhile, 95% said the promotion helped encourage brand switchover and purchase frequency, i.e., either:
They wouldn’t have bought this product without the promotion
They decided to buy this product over others considered
They decided to try a new product they hadn’t considered before
They decided to try a different brand
They purchased this product earlier than they would have otherwise.

With 44% of participants in the promotion opting to receive future Samsung offers, this strategy has also provided long-term customer value for the brand.

With the promotion being an undoubtable success, Samsung decided to extend it to August 2022.

“The promotion mechanic of Buy & Try has helped Samsung capitalise on switching customers from key competitors. It has also driven sales to our latest
and most premium ranges, by giving customers the confidence to purchase. By encouraging new customers to try our brand and products and giving our existing customers the incentive to upgrade their smartphones, we have exceeded our target expectations and have decided to extend the offer until later this year.”
– Lewis Jones, Services & Sales Innovation Manager – Samsung Europe