When advertisers consider what to offer in their promotion strategy, there’s almost always a conversation about the value of the type of person that responds to a special offer or giveaway.
Using the power of incentive (coupons, discounts, free gifts, or a chance to win) are all important tactics in a marketing strategy. It provides an introduction to a brand or product, leading to sampling, sales and long-term loyalty.
Giveaways and contests are easy and fast to implement, provide results in real time, are cost-effective and deliver measurable, accountable return on investment (ROI).
Sandra Fathi, President of Affect Strategies, says:
I have yet to find an organization — business-to-business or business-to-consumer — that would not benefit from some type of online contest.
One of Sandra’s clients, Cedarlane Natural Foods, increased brand awareness by raising Cedarlane’s visibility on their website and on Facebook. Matthew Gillespie, Director of Trade & Sales Planning, explains:
Our goal was for Facebook feedback to help generate leads and for Web visits to build awareness of the variety and advantages of the Cedarlane product.
They ran two types of promotions, a simple contest with a small prize, and a more complex contest with larger prizes. The result?
[We] more than doubled our email database, and, social media and Web traffic increased both in frequency and engagement by allowing customers to sign up to receive updates about future contests via their newsletter.
In other words, they increased awareness, introduced their brand directly to new contacts and identified new leads. Entrants participated for selfish reasons (to win a prize) and in the process, new customers came into the sales channel!