Have you ever wondered what companies are trying to accomplish by running contests and sweepstakes? Prize promotions are really a win-win situation for sweepers and companies alike: sponsors use sweepstakes as a way of gaining new customers and making more profit, and sweepers get great prizes. By understanding what companies have to gain by holding promotions, you can help them to reach their goals and encourage them to continue giving away the fantastic prizes that we all want to win!
Prize Promotions Create "Buzz" about a Product
Word-of-mouth marketing is becoming more powerful than ever in today's environment where people can tell hundreds or thousands of "friends" about things that capture their interest instantly in the forms of emails, blogs, and newsletters. Contests and sweepstakes encourage people to talk about a company, spreading the word about their products and services.Sweepstakes and Contests Invite Visitors to Websites
Even if they have a product you would kill for at a fraction of the price you'd be willing to pay, a company has no chance of selling to you if you don't know they exist. Online sweepstakes are a great way of bringing you to a company website in the hopes that you'll stick around after entering and see what the company has to offer.Companies Use Giveaways to Build their Email List
An email marketing list is a great way for companies to strike up a dialog with you, and to be able to keep you informed about their products and services. This is why contests and sweepstakes usually include the chance to opt-in to the sponsor's mailing list. Because newsletters are a very valuable form of contacting potential customers, sweepstakes that are instrumental at expanding the mailing list are considered to be very successful.Contests Generate Advertising Content at a Reasonable Cost
Creative contests where participants submit photos, recipes, or essays about products can oftentimes be used as advertising. In other words, instead of paying an ad agency to produce content, sponsors can pass the money that they would otherwise spend directly to their loyal customers. This is a great example of how contests can benefit sweepers and corporations alike.Sweepstakes Can Provide Valuable Market Research
Many times, you might see some optional or required survey questions while you are filling out sweepstakes entry forms. Why? Sponsors are trying to get some insight about how their potential customers think, go about their days, or use the company's products around the house. This can help them focus their advertising to be more effective.Giveaways Can Strengthen Relationships Between Customer and Company
With the advent of the internet, advertising is moving away from the monologue style, where companies tell you what they want you to hear, and more towards a dialog, where companies and customers build a relationship and communicate with what another. Sweepstakes can strengthen this company-to-consumer relationship by building a sense of fun, by entertaining while informing about their products, and by giving customers what they want - lots of fun prizes.Conclusion: Sweepstakes Only Work When Sponsors and Sweepers Work Together
Sponsors hold sweepstakes and contests for one reason: because prize promotions are an effective way of helping them make more profit. As soon as sweepstakes stop being profitable, companies will stop offering them. That is why it is so important to be a courteous sweeper and encourage companies to continue to hold more prize giveaways.At the same time, sweepers have rights, too. Participating in contests doesn't obligate you to be deluged with spam or to make a purchase. By learning how to protect yourself from unwanted marketing mail and recognizing the signs of a sweepstakes scam, you can make sure that companies aren't taking advantage of you while you enter sweeps.
