There are promotions, and then there are crazy promotions.
Like one that costs $30 million.
That was the payout made by Home Furnishings Association member Jordan’s Furniture of Taunton, Mass., after the Boston Red Sox beat the Colorado Rockies in the 2007 World Series four games to none. Jordan’s promised to refund the purchase price to every customer who bought furniture during a specified time span that season if the Red Sox pulled off a Series Sweep. They did, and some 25,000 customers were handsomely rewarded.
Following the triumph, Jordan’s colorful president and CEO, Eliot Tatelman, appeared in a TV ad wearing a Red Sox uniform. “Congratulations to the Sox and to everyone on your free furniture!” he proclaimed. “Now let’s celebrate!” The 30-second spot ended with Tatelman being sprayed by what appeared to be Champagne.
Jordan’s, with stores throughout New England, is closely associated with the region’s favorite baseball team. It partners with the Red Sox on charitable projects and has run many promotions over the years related to team performance. This provides fun and excitement for customers and garners plenty of publicity for Jordan’s.
But a $30 million payout? That’s crazy!
Insurance covers that
No worries. Jordan’s carries insurance for just that sort of thing. So do a few other furniture retailers who stage similar promotions. You can, too.
A leading provider of insurance policies of this kind is new HFA solution partner Tokio Marine HCC – Specialty Group based, conveniently, in Wakefield, Mass. While its parent company, founded in Japan in 1879, is one of the world’s leading insurance companies with a broad portfolio, the Specialty Group serves more of a niche market. It covers sporting and specialty events, travel, kidnap, and ransom and, of course, business promotions. It might be a no-hitter for one furniture store or a Super Bowl Sunday snowfall for another. If money is at risk, Tokio Marine HCC – Specialty Group is prepared to cover your losses, according to Robin Lang, vice president for contingency.
A great promotion “creates excitement and gets customers talking,” Lang said recently. The right insurance policy “enables you to plan your budget and protect your bottom line.”
The promotions are easy to communicate and easy to execute, Lang said. They increase sales and create customer loyalty, especially if the business shares team loyalty with a large fan base.
“Sports is a huge drawing factor, and here in Boston it’s very popular,” Lang said. Yes, she conceded, “we’re kind of like bookies,” but really the business is all about probabilities. It’s a good bet, however, that the chance of free furniture will appeal to customers.
For more information about Tokio Marine HCC — Specialty Group, call an HFA membership specialist at 800-422-3778.