A Pot of Gold-Benefits of Prize-Driven Marketing

The use of contests has been a valuable marketing tactic for many businesses throughout the years. These businesses know that people enjoy winning prizes, and when a business can gain interest in their brand by giving something away, they usually jump at the chance.

Holding a contest has many benefits, and if your business is trying to decide if a contest is the right promotion to use, the following are four major benefits your business will receive from implementing one into your strategy.

1. They increase awareness.

Contests are a great way to increase awareness about your brand. Since people like competing to win a prize, you can easily generate more interest in your company. You will find that your brand spreads further than your local market, and if you are administering your contest online or through social media channels, news about your brand and your contest will spread more quickly.

If you are administering your contest online, you will notice a large increase in website traffic. If you are administering your contest through social media, you will increase the amount of fans or followers you have. This increase in traffic and fans/followers heightens the overall awareness of your brand.

2. They provide you with ample feedback.

When you hold a contest, you can pick the minds of your current and potential customers. You can learn more about the people entering your contest to determine if you have been aiming your efforts at the right target audience. You can also find out if your messaging has been working correctly by asking your contestants questions about how they feel about your brand or what they want to see from your company. Contests open up the lines of communication and allow you to easily gain the feedback needed to keep your business running successfully.

3. They allow you to engage.

Contests enable you to engage with your customers. Along with administering the contest, you can continue the conversation by providing them with tips on how they can win the contest or keep them interested by providing them with other useful information about your company or about contest events.

If you are administering a contest that involves user-generated content, such as an essay or photo contest, the participants are more interested in being completely invested in your brand, which means that they will engage with you on a regular basis just to stay up to date on contest events. Even when the contest is over, they will have built a relationship with you that keeps them dedicated to your brand, products and services.

4. They allow others to market for you.

When customers are competing for their chance to win a prize, they will usually promote your event in an effort to help boost their chances of winning. For example, if you are holding a contest in which the winner is determined by earning the most votes, participants will spread the word about their participation in your contest in hopes it will earn them some votes. They’ll share the news through email, social media, word of mouth–whatever it takes to boost their chances of winning. Now, your contest (and your business) are being promoted without you having to do anything.

Contests are extremely beneficial to your business. You can gain valuable information from your customers, increase awareness about your brand, engage with your customers and earn valuable marketing from your contest participants. Contests are a great marketing tool, and if your company wants to reap these specific benefits, you may want your next marketing endeavor to involve a contest.

This copilation of marketing ideas comes from the desk of Jarrod Smith from Marketing Resources. Jarrod is the lead creative and sweepstakes promotions manager at MR.