You have probably participated in a brand competition at some point. Or maybe in a chance draw, in which the cashback is linked to the probability of something happening. Chance draws and competitions are widely used promotional techniques – and it’s no surprise! They are attractive for brands because they are fairly quick and easy to set up with a predetermined budget. Moreover, they give you an opportunity to create a big impact. Keen to find out more about competitions or chance draws? Read on!
Set up a competition free of charge
We are all familiar with competitions: a brand sets up a competition offering consumers a chance to win a product or service simply by answering a question. And don’t we all love winning? A competition often results in a high response rate, which is a relatively cheap way to put your brand in the spotlight. Did you know that you can even set up a competition at little or no cost? How, you ask? By working with a joint promotion partner who makes his or her product available free of charge or at a major discount in exchange for exposure. The prizes made available vary greatly, from one big prize (win a holiday or a car) to many smaller prizes (win 1 out of 1,000 tickets for the cinema, an amusement park or a musical). Often there is a jury to prevent the promotion from being considered purely a game of chance. Legislation concerning games of chance is stricter, which means that more conditions have to be met.
Respond to an event or occasion with a chance draw
Not only competitions, but chance draws too are an effective promotional tool. They may be less common than competitions, but they are by no means less effective! A chance draw is a striking and fun way to respond to an event or occasion. An example: anyone who buys the product within the promotional period will receive the full purchase amount back if… the Netherlands becomes European Champion or Tom Dumoulin wins the Tour de France.
Great consumer appeal
A chance draw or competition puts your product in the spotlight. It allows you to reach a large audience with a limited budget, avoid more expensive forms of promotion such as discounts, and safeguard your profit margins. A chance draw allows you to choose a theme entirely in line with your brand values. It also gives you the opportunity to attract attention in store through eye-catching displays. Consumers love these promotions too. After all, they’re a great way to bag an expensive product with a great discount!
Insurance for chance draws
You can have a chance draw insured through specialised companies. In this way, you cover yourself (partly) against the great risk you run though this promotion. The amount of the premium depends on the probability that something will actually happen. It also depends on the percentage of the purchase amount you intend to return. A lower percentage results in a lower premium. The premium is also lower if you launch the promotion in several countries at the same time.
All in all, both competitions and chance draws are an enormously interesting strategy to reach a large audience with a relatively low budget. Keen to find out more about chance draws or competitions of any format? Then don’t hesitate to contact us obligation-free.