How Your Small Business Can Derive a Monetary Boost From a Raffle
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Ryan is studying Legal Professions and Law Studies at the University of Oklahoma.Â ThÐ°nk ÑƒÐ¾u Ryan, Ð°nd best Ð¾f luÑk with ÑƒÐ¾ur Ñ•tudÑ–ÐµÑ•!
â€œImpact a Lifeâ€ Scholarship contributor:Â Ryan Dobbs
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As market conditions evolve towards relationship marketing strategies, customer retention is paramount. Never is this more evident than with small businesses in our local communities. Often these businesses are in direct competition for a small client base essential for the success of the business. Any efforts that boost belonging and excitement surrounding the business can be very powerful. A raffle is a great example of this. A raffle not only provides a value to the winner, but increased involvement from the customer base outside of the typical sales funnel. By humanizing the business, and showcasing both the owners and employees in a fresh and exciting way, customers form a relationship with the business beyond that of the competition. A raffle can also be a monetary boost for the business depending on the price point of the raffle tickets and the determined prize. For example, a personal training studio may sell a raffle ticket for 3 free months of personal training valued at $900. This service may be provided by an hourly employee or at a commissioned rate to a trainer. If the amount of the actual service cost is exceeded by the ticket sales, all the remaining dollars are a profit source. In addition, a stipulation of the winning ticket could be a public chronicling of the service provided and results of a $900 program. This may boost future sales and increase the profit potential of the next raffle. Strategies such as this show the community the heart of the business while providing a very valuable service to be raffled.
In addition to the actual winning of the raffle, this process can be used to build an email subscription list. Most small businesses understand the need for marketing outreach but fail to organize marketing data in an easy an cost efficient manor. An email list in this example could be used to send a weekly progress update about the winner to all ticket buyers. The raffle ticket buyers have already overcome the money objection by purchasing a ticket. The business then just has to make the results worth the cost. All ticket buyers want fitness results. If the winner sees drastic change, this is a great reason to be front of mind in other customer’s minds with a regular email from the business. The business now has a buzz, a potential financial boost, and permission to contact the customer all from a raffle of service the business already provided.
In an environment where customers have multiple options to choose from for almost any service imaginable, strategies like a raffle can be the difference between drawing in business that might have overlooked the potential benefit of the company, and losing business income the business never actualized. A raffle, such as this, can be a soft entry for current and potential customers to expand the business offerings by introducing new or improved services. In the above example of the personal training package, a gym owner could use a raffle to promote a new personal trainer joining the business. Not only would this personal training have an immediate client, but they may also have access to the raffle ticket buyers as potential client leads. The business would benefit from the personal outreach to each ticket buyer, the winner benefits from the winning package, and the trainer is shown how the business is willing to support their success. The increase in loyalty and retention from a raffle like the one in this example could be worth thousands of dollars in income over the next few months if it’s potential is properly harnessed.