Raffles as an Effective Marketing Strategy
Most businesses are unable to thrive without using an effective marketing strategy. Without the generation of sales, revenue is not obtained and profits will decrease. With multiple marketing orientations available to adapt- sales, product, societal, and market- businesses are able to implement strategies to increase sales through promotional advertising and customer loyalty programs, for example. The idea to utilize a raffle in retail and service business marketing efforts is ingenious because it has tremendous potential for increasing sales.
The most effective way to implement a raffle system into a businessâ€™ marketing campaign is to firstly adapt a societal marketing orientation. In todayâ€™s society, there is a dire need to support the adversities of life that social action could support. Whereas many remain ignorant towards these situations, businesses that take an active role in combatting categorizes such as Homelessness, Poverty, Education, Mental Illness, and etcetera will gain customer support and approval, which will increase sales despite the lower revenue margins. Ultimately, the business will gain profitability because the people will support the business that supports the causes that need desperate support.
After implementing a societal marketing orientation, the business must advertise the promotion involving the raffle. There are several ways this may be done, depending upon the product or service that is being advertised. For example, if it were a retail outlet, a t-shirt could be the product being sold. The raffle could then work in one of several possible ways. Firstly, this raffle could be induced as â€œBuy a shirt, get a raffle ticket.â€ Secondly, the raffle could be more of a source of discount, such as â€œFor every raffle ticket purchased, get 10% (or any percentage) off.â€ Thirdly, the raffle could be a source of encouraging an increase of sales, which would be, â€œFor every $50 (or any value) spent, get a ticket for the raffle.â€ There are numerous ways to implement this raffle campaign, but the important aspect is the societal marketing orientation to do good for society in concurrence with the business endeavors.
Regardless of how the raffle is set up, the social action of the marketing campaign is essential. The business should decide upon a certain foundation to support, or allow the winner to choose the foundation that the proceeds will go to. The raffle should be organized so that the winner receives a gift card or some prize, which would encourage them to participate. Moreover, the donation that the business makes to the chosen non profit foundation should be dependent upon the sales made in relation. Therefore, customers will be encouraged to spend more money so that the cause will benefit from their contributions.
The raffle is also effective because it has the potential to hold customer loyalty. If done every so often to support different foundations, customers will continually be encouraged to purchase the goods/services so that they feel as if they are helping make a difference in the world. Moreover, a customer loyalty program could be introduced as a way to continually bring back the customers for each raffle. For example, for every raffle that a customer participates in, he/she receives a token of appreciation such as a free keychain. After every ten (or any number) raffles, they are eligible for a lifetime percentage off, even when a coupon is used during the transaction too. Therefore, the retention of frequent customers will build relationships, which will become very profitable over time.