Successful competitions are conducted within a wider marketing strategy. Consistency is important to ensure that the objectives of a competition align to wider marketing strategy. To achieve consistency, the context and objectives of a competition need to be considered throughout, from planning to execution.
From experience with many promotions, Permitz has identified a number of key considerations in the design and execution of competitions that will assist in the success of a competition, within the wider context of a marketing strategy:
Step One: Consider the objective
There are a range of reasons to run a competition. For example, by requiring that entrants purchase a product or complete a transaction of a minimum value, a competition can assist in having a direct impact on revenue. If the objective of a company is to increase the average sale value, a competition may be successfully used to
Step Two: Consider timing
Competitions should be planned and aligned to other marketing events, important dates, and other factors such as weather. A chance to win a holiday to a hot tropical paradise is much more enticing when its not already hot and humid at home!
Step Three: Consider the audience
Any consumer competition needs to carefully consider the likes and behaviour of the target audience. It is much more valuable to have a database of 1000 individuals who are likely to buy products or services than a database of 100,000 individuals who are unlikely to ever complete a purchase.
Prizes and methods of entry need to be individually designed to be aligned to the wants and behaviour of the target audience.
Equally important is the need for the proposed audience to know about a promotion. Advertising (in the right medium) of a competition is critical to ensure its success.
Step Four: Consider the overall message
Companies that run a number of smaller competitions are typically much more successful in achieving their objectives than companies than run one (or less) competitions a year. The frequency of competitions ties back to a company’s overall marketing strategy. Consumers respond well to ongoing incentives and are more likely to participate. There is much less of a connection between the prize pool value and number of entries than many assume. For the average consumer the idea of winning $1,000 is just as enticing as the idea of winning $100,000. It is likely that the higher prize pools decrease entrants’ perception of their chance of winning.