Whether it’s conscious or not, we rarely do anything that doesn’t benefit us in someway.
Even charity work benefits the person doing it. It makes them feel good, and gives them a sense of purpose.
Without a clear and desirable benefit most people won’t act. And that benefit has to outweigh the effort necessary to take that action.
In a promotion, that benefit is the prizing.
1) Motivate Consumers to Register
Your grand prize is the main reason why consumers register for your promotion. So the prize has to be appealing. It has to be something consumers really want. And ideally it should be something that would be difficult to get without winning.
The prize also has to be worth the effort it takes to engage. No one is going to register for a promotion on the off chance they could win a $25 gift card. They might want the $25 gift card. But that doesn’t mean they are willing to do anything to get it. The value just isn’t high enough.
2) Keep Them Engaged
After consumers sign up for your promotion, you have to keep them engaged with it to get the best results. The problem is there isn’t much urgency inherent in a grand prize. People don’t find out if they’ve won until at least a few weeks after they enter. And that makes sustained engagement with the promotion hard to achieve.
That’s why instant win prizes are great. Consumers immediately know if they’ve won and sometimes the prizes are instantly redeemable. This creates a sense of urgency that keeps consumers engaging repetitively.
The best promotions offer both: a grand prize to drive registrations and instant prizes to encourage sustained and repetitive engagement.
3) Attract Desirable Consumers
Unless your targeted consumer is everyone, you need to think about what will generate the most valuable leads for your business. Offering too general a prize can result in high registration rates, but ultimately leave you with a list of prize hunters not qualified leads.
Good prizing relates to your products and brand. It appeals to your current customers and brings in new people who might find your products interesting.
For example, let’s say a woman’s clothing store is running a promotion. Good prizes could include:
Gift certificate to the store
Shopping trip to NYC
Custom outfit by a featured designer
These prizes relate to the store’s main offering (clothes) and will appeal to people who are interested in shopping for clothing. This means the promotion will generate a list of qualified leads for the store. People they can connect with after the promotion ends and convert into customers.
On the other hand, bad prizes for the promotion would be:
A new car
These prizes don’t have anything to do with why consumers interact with the clothing store. An iPad or a new car might appeal to shoppers, but they also would appeal to people outside the store’s target market. What the store would end up with is a list of consumers who were interested in the prize, not their products.
The Bottom Line
Promotions are all about rewarding consumers for completing an action, whether it’s buying a certain product, engaging on social media, or even just becoming aware of a brand’s offering. But in order to get consumers to complete those actions, the reward has to be appealing.
That’s why your prizing is so important. You don’t want to build a great promo and then shoot it in the foot by offering crap prizing.
Take the time to come up with prizing that is desirable and attracts the right consumers to your promotion.