It’s no secret that humans are competitive creatures, with some taking things to a whole new level if the prize is attractive enough. Nothing quite like a good reward to get those engines running, which is why prizes and incentives are considered amongst the most effective, and sometimes underrated tools that could really solve most of the world’s problems if we ever got organized, but that’s a story for another time.
Understanding the joy that’s derived when winning a prize isn’t such a complicated scenario. Who doesn’t enjoy being gifted or winning something? This is why it’s an effective marketing strategy: businesses incentivize their existent or potential customer base through prizes. Now, these come in different packages, depending on the niche.
For example if it’s a restaurant, there might be a generous discount or a ‘Buy 1 Get 1 Free’ offer, online casinos and affiliates offer players the freshest no deposit bonuses. Even employers give their workforce monetary gifts as a means of motivation for productivity or to go the extra mile. Whether it’s through an increased commission percentage or ‘Refer a Friend Bonus’, there are many ways a workplace can show their appreciation through remuneration. But does it always make sense to run a competition despite its proven track record? Well, that’s what we’re here to find out.
Reasons Why Prize-Based Incentives Are Awesome
When it comes to business, competitions could be an amazing way to boost several areas of your business while being able to collect valuable information at the same time. Here are a couple of reasons why prize-based competitions rock.
They’ll Boost Engagement
When it comes to the online world, having a huge following with close to no engagement is about as useful as the number nine on a microwave. Competition posts are known to generate much higher rates of engagement with people being more likely to like and/or share a post.
You’re Able to Generate Leads
Now, whenever anyone interacts with your post or enters the competition directly, one might assume that the person is interested in the product or service you’re offering. This could also mean that a large part of this audience could also potentially include leads. Here’s when you decide how to convert this engagement with the goal of eventually boosting your ROI.
You Can Create a Hype You Can Afford
Not all competitions need to include front row seats to the latest Harry Styles concert, a freebie is always a freebie, and giving away anything is aways going to cost less than launching a full-blown marketing campaign, no matter how expensive the prize. Competitions can be as big or small as you’d like them to really, just like with everything else it’s all about the way you package it baby!
There’s a Lot to Learn
Running a competition will help you learn so much about your audience that you had no idea about before. Whether it’s the sort of demographics you’re attracting or perhaps the sort of engagement you’re receiving, comparing with your previous notes might help you notice some differences between what you were anticipating and what went down. By doing so you’ll be able to really get into the finer details regarding what makes your audience tick.
Reasons Why Prize-Based Incentives Aren’t Always the Answer
Of course, there are always two sides to every story and the last thing we’d ever want to be is biased. Here are a couple of reasons why prize-based competitions probably won’t work for you and what to consider instead.
Good Competitions Take Time and Work
Just like you might imagine, the best competitions aren’t thought out overnight, so if you haven’t given yourself time to plan accordingly then it’s safe to say that this isn’t for you. There’s also a considerable amount of work you’re going to need to account for if you’re hoping to achieve some solid results. Keep in mind that most times you’re also going to want to run this by your legal and compliance team before in order to ensure everything is above board, especially if your industry is highly regulated.
Your Data Might Be Messy
Even though we’ve mentioned that competitions are a great way to get to know your audience and even generate potential leads, because you’re casting such a wide net there’s also a chance of fishing up a couple of boots. Because sometimes people are incentivized by the prize rather than actively engaging with your brand, this could lead to slightly compromising your statistics if this is one of your main goals.
There Are No Crystal Balls
Even if you might have put in the time and effort as well as a substantial amount of cash, there’s no way to predict how this is going to go once you go live. You might really struggle to get new entries, or perhaps your campaign might blow up overnight reaching proportions you weren’t quite expecting and now you’re not sure how to handle it. Do your homework and keep hydrated, the rest is up to the internet.
There Are Many, Many Rules to Follow
When it comes to competitions, depending on your business or regulatory body there are usually a whole list of rules you’ll be expected to follow. This is something you need to take very seriously because the last thing you’re going to want is getting banned from a platform for violating any terms and conditions, as well as permits and/or licenses. Always run your competition with your legal and compliance team before going live, because once it’s out there there’s no going back.
