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Businesses Derive Promotional and Customer Loyalty by Utilizing a Raffle by Micaela Arnett

Businesses Derive Promotional and Customer Loyalty by Utilizing a Raffle by Micaela Arnett


Businesses can derive promotional and customer loyalty and retention by utilizing a raffle in their marketing efforts in a number of ways. Traditional marketing strategies are fueled by business/consumer interaction, and a raffle is a perfect example of how a company can personally interact with its customers. In order to create customer loyalty, there must be a consistently gained benefit and incentive. With a raffle, the customer feels as though they have just as great of a chance as any other person to win the designated prize, and it allows for interest in the company as to what they are offering for free. This is a tactic that can be used to promote a new product or item. It is a no brainer that people love free things, and the ease of entering a raffle for the chance to win something for free is an appealing concept to most. If the company hosting the raffle not only had a winning prize, but also had multiple prizes for more chances to win, more consumers would enter for the simple fact that there would be a greater chance for them to win an item.


Another strategy to promote a company raffle would be an immediate prize or free item just for entering, such as a coupon or plastic cup with the brand name on it. This allows for company promotion from anyone who enters, increasing the number of potential customers. If a coupon is given, the customer will ultimately come back and purchase something with the coupon, or give it to someone who will.


Raffles are not common among many retailers, and if more raffles were implemented in their marketing efforts it would spark interest in the common consumer. Large companies are less likely to hold raffles as frequently as a local business simply because they generate enough publicity from big commercials or the fact that they are a large corporation where a raffle would not make a significant difference in their consumer loyalty numbers. Local businesses, however, have a better shot at generating new customers and customer loyalty with a raffle and it is an ideal mechanism for their status.


If a business were to have a consistent raffle every week or every month with a significant prize that would keep the customer returning, the customer traffic would increase greatly. Say the prize was a five hundred dollar gift card; most people would enter because of how little effort it takes compared to the probability that they may actually win the gift card. After the gift card is awarded to the winner, they have to return to use their prize, and that is when the business needs to perform. Now that the consumer has the gift card, what they end up buying needs to solve a need of theirs and become a useful item in their lives. If this holds to be true, the customer will return and be more willing to spend their own money on the business’s product because they were impressed once before. 


Word of mouth is also a marketing strategy that works for itself, which some companies tend to forget. If the winner of the raffle is pleased with the prize and continues to come back to the business after the fact, they will talk, and the people they talk to will talk, and so on and so forth. If one person wins and has a pleasant experience, the likely hood that their friends or anyone for that matter who hears of this awesome raffle, will come back and enter the next raffle. The importance of using raffles as a marketing technique does not lie in the act of entering the raffle, but rather the outcome and the winner’s experience post raffle. The raffle must impress the winner so much that they will spread the word and most certainly enter the next raffle. To the consumer, the effort compared to the potential outcome completely outweighs the other, causing them to undoubtedly enter. The real test is after they win. That is when a company must prove themselves to be worthy of that customers return. Raffles allow for a company to show the customer what they have to offer and to give them reason to come back to the business.


A business’s use of raffles in their marketing strategy is potentially a highly successful way to generate customer loyalty and promotion if implemented correctly. Consistency and significant gain is important to the consumer when dealing with any company, and if the raffles are holding up to this expectation, any company will have success with a raffle and will have happy and loyal customers.


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Contributed by Micaella Arnett