Connect With Customers Using Contests and Sweepstakes

When was the last time you entered a contest and won? Why did you enter?

The last time I won a contest, I got a Samsung Galaxy Note 10.1. I entered because it was an easy process that required little to no effort from my part. That’s a pretty big prize considering they didn’t ask much of me. You have probably wondered what companies are trying to accomplish by running these contests and if it would be good for you to hold a contest as well.

Consider this: a study by Ipsos OTX found that 70% of US respondents noted that coupons, free products and discounts from companies drive them to stay more connected on social media.

Prize promotions are really a win-win situation for contestants and companies alike: sponsors use sweepstakes as a way of gaining new customers and making more profit, and contestants get great prizes. On average, there is a 34% increase in new fans acquired when a contest campaign is run.

Here are four of the reasons why companies should have sweepstakes and contests:

  • Generate “Buzz” about Products: Word-of-mouth marketing is more powerful than ever. People can now tell their friends instantly, through blogs, Facebook, and Twitter, about things that capture their interest. Contests and sweepstakes encourage people to talk about a company and spread the word about their products and services.
  • Website Views: A great product is worthless if your customers don’t know they exist. Online sweepstakes give people strong motivation to visit your website, and many of those people will continue to explore the website after they’ve entered to see what you have to offer.
  • Build Email Lists: Email marketing lists are a great way for companies to strike up a dialog and keep customers informed about products and services. This is why contests and sweepstakes should include the chance to opt-in to the sponsor’s mailing list. Newsletters are very valuable for contacting potential customers, so using sweepstakes has proven to be very successful for expanding mailing lists.

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  • Strengthen the Company and Customer Bond: Sweepstakes and contests strengthen the relationship between the customer and the company by building a sense of fun. They do this by entertaining people while informing them about the company’s products, and by giving a benefit for interacting with the company in the form of fun prizes. The chance to win creates a positive feeling in their visitors’ minds, which carry over to a brighter attitude toward the products.

Sweepstakes and contests only work when sponsors and contestants work together. That is why it is so important to not spam your customers and be courteous.

Which companies do you think have some of the best contests? Lets discuss in the comments below!

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