Until recently, I didn’t give much thought to competitions being a powerful marketing tool. I always thought of them as a bit of fun – something people did for a chance to win a prize, but not really relevant for businesses. That is, until I developed a competition website for a client, Lucky Cat Media (Prize-Draw.com). Working behind the scenes opened my eyes to just how impactful competitions can be for generating leads, growing a newsletter list, building social media engagement, and increasing brand awareness.
Now, I can confidently say that if you haven’t yet considered running a competition as part of your marketing strategy, you could be missing out on some significant business growth opportunities.
Here’s why competitions can work wonders for your business and how to get started.
1. Generating leads with ease
One of the most immediate benefits of running a competition is the ability to generate leads quickly and efficiently. Whether it’s a product giveaway, a service offer, or something more unusual like an experience, competitions attract people who are already interested in what you’re offering. The entry process often requires participants to submit their email addresses or phone numbers, which can then be added to your newsletter or CRM database.
For example, I worked on a competition site that offered free-to-enter prize draws, and it was astonishing to see how quickly the list of leads grew. Within days, we had hundreds of new contacts. And because people were genuinely interested in the prizes on offer, they were highly relevant leads, which made follow-up marketing much more effective.
2. Building your email list
Competitions are a great way to build your email list with engaged users. Email marketing remains one of the most effective digital marketing strategies, and growing your list with high-quality leads is crucial. By offering an appealing prize, you can motivate people to subscribe to your newsletter. The key here is to make the prize attractive enough to your target audience to compel them to enter while ensuring that the competition terms are clear about them signing up for email communications.
Let’s face it – most people are reluctant to give their email addresses away. But a well-placed competition with a prize they care about can turn that reluctance into excitement. The best part? Once they’re on your list, you can start nurturing them with content, special offers, and news.
3. Driving social media engagement
Competitions can also drive massive engagement on social media platforms. Whether you run the competition directly on social media or use it to drive traffic back to your website, the opportunities for increasing your visibility are immense. Competitions can go viral when people tag their friends, share posts, or comment for a chance to win.
For example, brands like Omaze and Raffall run frequent competitions that generate thousands of shares and comments, helping them grow their social media following exponentially. The social proof created by people interacting with your brand in this way adds credibility and exposure, making your competition a win-win.
4. Increasing brand awareness
Another major benefit of competitions is the potential to raise awareness of your brand. When done correctly, a competition can introduce your business to new audiences who may never have discovered you otherwise. Even if people don’t win, they’ll still have learned about your brand and may return to make a purchase or engage with your content in the future.
Take a brand like Wowcher, which frequently runs competitions alongside its discount offers. Every time they promote a competition, they’re not just offering a prize – they’re getting their name in front of thousands of potential customers. With the right prize, you can achieve similar results for your business, expanding your reach without significant advertising costs.
5. Boosting sales and conversions
Competitions can also directly drive sales, especially if you combine them with a purchase incentive. For instance, running a competition where entrants have to buy a product or service to enter is a powerful way to increase immediate revenue. Alternatively, offering a discount code to all competition participants is a great way to turn non-winners into paying customers.
Competitions that include an incentive for everyone who participates tend to do exceptionally well. People love the idea of getting something, even if they don’t win the grand prize. And when those incentives lead to purchases, you’ve just turned a fun promotion into a profitable marketing strategy.
6. Strengthening customer loyalty
A well-organised competition can do wonders for customer loyalty, especially if you run it as part of a broader customer retention strategy. Competitions give your existing customers something to engage with beyond just purchasing your products or services. Whether it’s a giveaway for loyal customers or a special competition for repeat buyers, you’re keeping them interested and engaged with your brand.
For example, companies like Tesco and Boots frequently run competitions exclusive to their loyalty card members, which not only boosts engagement but also makes customers feel valued.
7. Low-cost, high-impact marketing
One of the best things about competitions is that they don’t have to cost much to implement, but the potential rewards are huge. A competition can be as simple or as elaborate as your budget allows. Even if you don’t have the resources to offer a big-ticket item, you can still achieve great results by offering smaller prizes or discounts.
Many businesses shy away from competitions because they think it will be expensive or complicated, but that’s far from the truth. With the right strategy, you can run a competition that generates leads, boosts sales, and strengthens customer loyalty without breaking the bank.
How to get started with competitions for your business
If you’re convinced that competitions could be the marketing tool you’ve been missing, it’s time to take the plunge. Here’s how to get started:
- Define your goals: Are you looking to grow your email list, drive sales, or increase brand awareness? Having clear goals will help you design the right type of competition.
- Choose a prize: The prize you offer should be relevant to your target audience. It doesn’t have to be extravagant, but it does need to be appealing.
- Set the rules: Make sure your competition terms are clear, especially regarding how participants enter, how the winner is chosen, and how you’ll use their contact information.
- Promote the competition: Use social media, email newsletters, and your website to get the word out. The more people who enter, the more effective your competition will be.
- Follow up: Once the competition is over, make sure to follow up with participants, especially those who didn’t win. They’re now leads who have shown interest in your brand, so use this opportunity to convert them into customers.
Why work with a partner?
Running a competition might seem simple, but getting the best results requires the right tools and experience. That’s where Prize-Draw.com comes in. They specialise in designing competition strategies that help businesses generate leads, grow their customer base, and increase brand engagement.
Whether you’re planning a small giveaway or a large-scale competition, Prize-Draw.com can assist with everything from planning to promotion and execution. They take the hassle out of running competitions, so you can focus on your business, and they already have a sizeable following, even though they’re fairly new.
Competitions are no longer just a bit of fun—they’re a powerful marketing tool that can boost your email list, drive social media engagement, and raise brand awareness, all without breaking the bank. If competitions aren’t part of your strategy yet, now is the time to consider it.
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