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HOW TO ORGANIZE A DRAW THE RIGHT WAY?

Do you want to make yourself known? Do you want to ad more subscribers to your list? Do you want to increase your sales? For all these reasons, a draw can be a good strategy. But you have to do it right.
The idea for this article came from a meeting with a potential customer. The owner had organized an important draw to increase his sales and he was disappointed with the results. Without revealing the name of the business, I think that we can use some of the information to see what was done right and what could have been done better. 

The business is a decoration boutique. And the price was a trip for two worth $ 2,500 !!!!

For this draw, the owner developed a very good strategy that few think about; on top of your registration, for every other person that would register because of you, you had another entry.  With this in place, the referrals increased the chances of winning, not the other way around.  Few people think about this when they organise a draw.  We all want to tap into the network of people around us.  But by not giving a proper incentive to do so, people bringing other people into the contest actually decrease their chances of winning.  Which is a little counter productive. So, when organizing your draw, make sure that you reward word-of-mouth within the circle of family and friends. It is very important.

The other thing that is important to remember is that a coupon may also be a contact authorization. Check with the government agency in your country / region regulating email marketing to ensure that you include all the relevant information so that you can do a proper follow up after the contest is over. If done well, the people participating in your contest have an interest in your business or services, so they can be potential customers.

Which brings me to the next point. When organizing your draw, it is important to choose the prize carefully. In our case, winning a trip is an incredible prize and the value will generate lots of interest .... However not for the company or product/services they offer, but rather for the trip itself. In our specific case, the list of contest participants will have less to do with an interest in decoration than one for vacations. Of course, the argument can be made that offering something as important would bring eyes to the business/brand. But choosing wisely can accomplish both at the same time.  For example, by offering to decorate a full room as a prize, the company will attract people more in line with what they offer on top of being very generous and gathering attention. 

Finally, depending on the value of your prize draw, there may be a tax impact for your winners, documents may be required and the mechanics of your draw may be regulated by a government agency to ensure that the prize is properly remitted and that the process is as transparent as can be. Here in Quebec, the “Régie des alcools, courses et des jeux” is the organization that handles all contests with prices exceeding $ 100,00 in value.

If you have any questions, comments or want to share your experience, please do not hesitate to contact me.


 

Stéphane Elmaleh-Riel, B.Ed., MBA
Marketing consultant