Raffles as a Marketing and Revenue Increasing Tool by Anthony Mei

Raffles as a Marketing and Revenue Increasing Tool by Anthony Mei

 

           
If I could analyze human nature for just one moment, I’d like to point out that humans
love taking small risks to win big. If we didn’t, lottery tickets, casinos, and other instances of
gambling wouldn’t exist. Raffles, one of the oldest forms of gambling, also serves as an excellent
source of marketing – it increases a consumer’s drive to purchase goods or services while also
helps spread word of the business. However, because raffling has existed for a significant
amount of time, businesses everywhere have utilized many forms of the marketing technique,
which gradually led it to become less successful. So, what must be done to revitalize the use of
raffles as a marketing and revenue-increasing technique is to reinvent raffles, and to give it a
redesigned style.

Still, a business must follow the basic principles of a raffle, in which many customers
receive a ticket that will correspond to a selected ticket that will receive a prize. I believe that I
have developed an effective raffling system that, while involving more dimensions that other
raffles, maximizes consumer spending, spread of brand, and customer loyalty. Similar to any
raffle, multiple prizes will be offered. However, to reduce wait time to receive prizes and
increase sales, the business should hold multiple drawings over an extended period of time, all of
which are drawn by actual raffle ticket holders. In order to maximize profits during the
promotional period, a customer should receive an amount of tickets that is proportional to their
spending at the business. Additionally, customers who visit the store multiple times during the
promotional period should receive multiple raffle tickets, which can be proven by showing a
receipt of a purchase made during the valid time frame. And as the consumer makes a greater
amount of visits, even more raffle tickets should be awarded.

During raffle drawings, a variety of prizes should be offered. Both large and small prizes
should be offered in each raffle drawing. Having both ensures that ticket holders have a greater
prize, while the lower prizes offer enough of a reward so customers do not feel that the drawing
is unfair. While many prizes may be related to the business – for instance, coupons redeemable
for goods or services under $10 or a gift card for $500 – diversifying the winnings may peak
potential consumer interest. In having gifts that customers want and do not relate to the business,
a greater number of potential consumers will spend a greater amount of money for a better
chance at winning a generally appealing reward. A car shop, for example, can only offer so many
oil changes before the raffle ticket holders grow weary; instead, throwing in something that
everyone would want, like a gift card to a local restaurant or two free plane tickets to anywhere
in the continental United States, will pique the interests of potential consumers. Nevertheless, the
winnings from the raffle tickets should cater to the business’s target consumers. This grabs the
attention of possible customers and, again, generates promotional benefit. Good prizes, after all,
make a good raffle.

For raffle ticket holders, the multiple drawings acts as immediate potential gratification;
the sooner a customer has the chance to win a prize, the better, since they will associate possible
immediate gratification, a naturally pleasing sensation, with the business and build customer
loyalty. The two outcomes both benefit the business – if a person wins in an earlier drawing,
he/she will desire to return for a second drawing in hopes that they will win again, but if a person
did not win in an earlier drawing, he/she will come back for a second chance at a prize, as long
as all previous entries remain valid for later winnings. If the raffle took place over a moderately
extended period of time, customers will continue to generate revenue for the business, as they
may not remember when the raffle promotion ends and buy goods or services. In allowing
genuine raffle ticket holders to choose the winning tickets from the tumbler, the person can
establish a locus of control, in which they believe that they can choose the ticket they want.
Doing so allows ticket holders to respect the results, while a ticket-chooser’s belief in their
control over the outcome will spur them to get more raffle tickets, while also building customers’
trust with the business and building upon loyalty. The proportional raffle ticket for a customer’s
multiple visits establishes a reward system for loyalty; spending more money at this
establishment rather than another provides the person with a chance at winning a prize. Customer
loyalty, for all these reasons, will thus increase, and serve as an effective outcome of a raffling
promotion.

A raffle’s promotional benefit may also develop into long-term benefit. The potential for
winning a prize by simply shopping will attract a greater number of consumers; shoppers and
winners of previous prizes alike will spread the word to potential customers. This in turn
generates an even greater profit for the business, as a client’s outstanding first experience will
lead to customer loyalty. Attracting new visitors to the business, at the same time strengthening
the trust with old ones will lead to greater revenues. Thus, with more customers, and repeated
raffle events, the business may significantly grow.

Raffles, if done correctly, can greatly improve customer retention while garnering
promotional benefits. This system of many simple rewards with the prospect of significantly
desirable prizes over an extended time period will gradually build a strong consumer base as
increased profits and other promotional benefits arise. And through these short-term benefits,
using a raffle as a marketing plan will ultimately create long-term benefit for the business, as is
the intended purpose of such an effort. A new raffle such as this one certainly plays with a
person’s desire to gamble. And, if done correctly, the raffle may lead to the business’s success.

 

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Contributed by Anthony Mei

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