Customer Retention with a Marketing Twist
Here’s a great twist on using raffle tickets as a marketing strategy from “Impact a Life” college scholarship essayist Mary Rose Garcia. Mary Rose is a student at Lubbock Christian University and we wish her good luck in her studies.
If you, or someone you know could use a $1,000 scholarship to help defray college expenses, you can find out more here.
With the economy in our country still not being at an optimal level, businesses are vying with other businesses to keep their customer base at a profit-making level. These same customers are also finding themselves suffering in many different ways due to the economy. Customers are having to find more innovative ways to save money by comparison shopping and finding the lowest prices for any number of items from groceries to appliances or from automobiles to houses. People are clipping coupons or even using modern technology to buy online vouchers where you can save up to fifty percent on any number of items or services.
With this being said, I believe that a retail or service business would benefit by utilizing a raffle in their marketing efforts. For example, the largest grocery store in our town could feasibly raffle a new vehicle, a moped and three gift cards in different increments for a total of five prizes. A new vehicle might range from $20,000-$30,000, I was looking at Honda, from a Civic to a Pilot. The Mopeds range from $600-$2000 and the gift cards could be in increments of $500, $300, and $100. Looking at the high end of these prizes, it would be around $33,000. I am not sure how many people go into a grocery store daily, but Iím going to guess about 1,000 people daily, in just one store.
Letís say that 500 of those people buy a $1 raffle ticket daily, it would take about two months to cover the cost of the five prizes. Now letís say that this is a summer promotion with a ďback to school in your new carĒ spin so you run this promotion for the three summer months. The final month could generate an additional $15,000 in profit. Now, if you have each of the stores in this grocery chain doing this, and each store partners up with a different non-profit organization to give them half of the profits from the last month of the promotion, everybody can win.
The economy has affected everyone in our country and I know that several of our local non-profit organizations have lost funding in many different areas which affects our children, elderly and many citizens that get help with things such as food, shelter, utilities, prescriptions, childrenís services and many others. We have nine stores within this grocery chain in our city and it would be awesome if they could partner with nine local non-profit organizations. I have helped a few of our local non-profit organizations with fund raising events and they usually donít get close to making $7500 which is half of the profits that could be generated from the last month of raffle ticket sales. The grocery store could take their part of the profits and use it in so many different ways. The money could be used as part of an incentive for their employees, such as whoever doesnít miss a day could be in a drawing; or maybe start a scholarship(s) for employees who will be starting college or for non-traditional students wanting to go back to school; or they could donate the money to another non-profit organization in the community.
There may be restrictions, legalities or the stores may need to request help from the non-profits to actually sell the raffle tickets in the store or the store can have their cashiers ask and sell them at checkout. Each store may also be able to partner with one or nine different automobile dealerships and/or the place that will provide the moped, which could lead to a lower purchase price for the two major items to be raffled. Wow, just thinking of the possibilities for so many different people to benefit from raffle ticket sales is amazing! The store and the major dealerships would have their name on the raffle ticket which is promotional advertising or maybe even include the name of the local non-profit agency they are partnering with. The grocery store would generate more business because almost everyone would jump at the chance to win a new car for just a dollar (look at lottery ticket sales). The store would also retain their current customers because this would be a fun promotion. They would also retain customer loyalty because customers would know that part of the profits is going to local agencies, which help our local citizens!
The employees would be encouraged to watch their attendance in order to possibly get a bonus check (if that is the route taken) because who doesnít like free money. There are other ways to incorporate raffle ticket sales for small and large businesses and from a smaller scale to a larger scale, which is what I have detailed above, but the bottom line is that it can be profitable for all involved and also promote customer retention. So many lives can be impacted through this raffle ticket fundraiser, from people in the community who use the services offered by the non-profit agency to the student(s) going back to school in a new car. Regardless from which angle this scenario is looked at, it is a win-win situation, which can benefit so many people in the community.
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