Prize promotions should be central to the sales strategy of any business, because they are extremely effective, often inexpensive in comparison to other types of marketing campaign, and drive sales in a number of ways.
For example, prize promotions can drive sales by increasing brand awareness, promoting customer engagement, generating customer insights and rewarding customer loyalty.
How do prize promotions drive sales – brand awareness?
Prize promotions can drive sales by capturing the attention of customers and creating a buzz around a brand. They can help ensure ranges are displayed prominently in stores and are often particularly effective for launching new products.
For example, a prize promotion to find a new Voice of the Checkout for Tesco went viral on TikTok. It attracted thousands of entrants, including celebrities and other supermarket chains. The hashtag #tescovoiceofcheckout achieved more than 46.1 million views and the promotion consolidated brand awareness.
How do prize promotions drive sales – customer engagement?
Prize promotions can drive sales by asking customers to take action and even tiny acts, such as entering a prize draw by sending a text, can deepen the connection to a brand.
For example, Haribo ran an on-pack magic moments prize promotion to celebrate 25 years since the launch of its Starmix sweets. There were 4200 prizes available, plus a grand draw for a holiday in Florida, and the promotion was enthusiastically embraced by customers.
How do prize promotions drive sales – customer insights?
Prize promotions can be used to collect customer data. Obviously, this data must be collected in compliance with data protection rules and regulations, but whether it’s email addresses, demographic profiles or purchasing preferences, it can be used to generate leads, fine-tune sales strategies and improve sales figures.
For example, with the help of a prize promotion a brand could determine what kind of prize promotions its customers prefer.
How do prize promotions drive sales – customer loyalty?
Prize promotions reward loyalty, leaving your existing customers with positive feelings about your products or brand. This makes them more likely to buy from you in the future and, given that recruiting new customers costs more than retaining existing customers, is smart business practice.
For example, Tesco customers were rewarded with an opportunity to win 2 x £250 gift cards at Christmas.
What are the key points about how prize promotions drive sales?
- Prize promotions improve brand awareness.
- Prize promotions promote customer engagement.
- Prize promotions produce customer insights.
- Prize promotions reward customer loyalty.
