Each year the U.S. retail industry hands over millions of dollars worth of its merchandise and revenue to American consumers for free. It’s the antithetical nature of receiving freebies from companies that exist solely to exchange goods for money that make retail sweepstakes promotions so appealing to American consumers.
While there is an implied altruistic positioning associated with retail sweepstakes, there is little about them that is truly selfless. Sweepstakes are simply one of many promotional tools that retail companies use to market their goods, their company, and their brand. There is an anticipated ROI with every sweepstakes promotion, and the success of the promotion is determined not by the effect that it has on the prize winners and participants, but rather the effect that it has on the sweepstakes sponsor's present and future business.
Internet Use Makes Sweepstakes More Popular
Sweepstakes are a popular form of promotions marketing because of their publicity potential and the enthusiasm they can generate. As the use of the internet has grown, so has the popularity of online sweepstakes. Website tools make sweepstakes registration and data management more manageable. Web accessibility makes sweepstakes advertising more viral.
The positive impact of a well-executed online sweepstakes can extend far beyond temporary publicity if the sponsoring organization has long-term customer relationships in mind. Used wisely, a single sweepstakes can benefit a retail organization in a number of different ways long after names have been drawn and prizes have been awarded.
Online Sweepstakes Get Customer Attention
Who knew that Cheesecake Factory is a 30 year-old company with restaurants in 37 states including Hawaii? Everyone who entered their “Ultimate Dining Destination Sweepstakes” knows, because those Cheesecake Factory corporate factoids are a big part of the registration process.
Who knew that Chrysler has a full-size SUV hybrid vehicle? Everyone who entered their “Chrysler Drive to Go Green Sweepstakes” knows because the vehicle is showcased and highlighted, and described in great detail.
The sweepstakes event captures the attention. It’s then up to the sweepstakes sponsors to focus the attention once they’ve gotten it. It’s a brief communications opportunity, but also a rare uninterrupted moment in which a retailer can connect with customers and potential customers. The long-term impact of the sweepstakes can depend on how well the retailer uses this moment.
Online Sweepstakes Help Find Future Customers
It is assumed that those who enter an online sweepstakes have enough of an interest in winning the contest’s prizes that it motivates them to enter. By choosing the sweepstakes prizes thoughtfully, the sponsoring retailer can attract new people who will likely become new customers. Prizes from the retailer’s own product mix may not have the same mass appeal as a cash prize, but the quality of the potential customer list that is compiled from the sweepstakes registrants will be of more value.
The prizes for “The Costco 12 Days of Giveaways Sweepstakes” were chosen to showcase hot holiday gift items that people might not have known they could purchase at Costco. After entering the sweepstakes, registrants were directed to a sales page featuring discount deals on that same merchandise plus dozens of other products. A consumer who was thinking about purchasing these specific products was given a reason to think about purchasing them from Costco. This is how thoughtfully chosen prizes create future customers.
Do online sweepstakes actually increase sales?
