A Raffle Can Be the Perfect Way to Draw in New Customers
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Mike is a student at Cal State Eastbay in Hayward California and is pursuing an MBA. Thаnkѕ Mike for уоur соntrіbutіоn, аnd best оf luсk!
“Impact a Life” Scholarship contributor: Mike Chon
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Great marketing results in a boost in sales but ultimately it comes down to giving customers great value for their money. Even the best marketing efforts cannot withstand the effects of price elasticity and customer loyalty, therefore, many businesses would benefit far greater from the use of a raffle in their marketing efforts versus traditional mailers or flyers. By providing free raffle entries for a specific amount spent or units ordered, businesses can provide extra incentives to earn loyalty and repeat business from customers.
Initially, a raffle program would benefit mostly current customers, but through advertising and social media, it can be the perfect way to draw in new customers. Along with customer contact information, other customer data linked to transactions and inquiries, can be collected and used for future marketing or the introduction of new products and services. The data that is collected and used cannot be underestimated in shaping certain aspects of operations. By knowing more about their customers and their habits, a business can improve their own ordering and inventory costs, just by having a better understanding of their customer’s needs.
The great thing about a raffle, is that all customers will see it as an opportunity to win something for simply performing their routine ordering and purchasing. A customer may see two competing businesses with very similar pricing and service, but the business offering the incentive and loyalty bonus will likely win out. The prize does not need to be very expensive, and depending on the type of business, profit margins may only support prizes at a certain price level, but as long as the prize is desirable, it will be a boon to business.
There are many cafes and small shops that offer frequency bonuses. An example is a punch card, where a free coffee or sandwich is earned after a specific number of purchases. The cost for this type of promotion is very low but it provides the perfect example of what a business is trying to accomplish. A 10% coupon may bring in a customer once, but with a slight twist, such as a free item after a specific number of purchases, and you have just started a long term relationship. Many businesses are looking for repeat and loyal customers, and by rewarding those types of customers should be at the forefront of everyone’s marketing efforts.
I believe the use of a raffle to enhance marketing efforts is underrated. Customers want a good deal and great service; however, their loyalty and dollars can be earned through buyer incentives. Whether through use of a single prize raffle or frequent buyer incentives, by giving the customer more than they expect, a business earns a type of respect from the customer. These incentives benefit all parties involved, as the business makes more money with regular customers and the customers get prizes for their business, a win-win for all.
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