Edward Standley essay

 

 

 

 

 

Raffle Tickets and Customer Loyalty

Edward Standley

10/9/2017

University of Phoenix

 

 

Raffle Tickets and Customer Loyalty

The objectives of a marketer are to retain customers and gain new ones. An effective approach used to achieve these goals is through utilizing raffle tickets. In raffles, participants purchase tickets and have the chance to win prizes; the probability of winning is random, thus making participation exciting. Principally, organizations using raffle tickets in marketing, maintain success because the technique demonstrates to consumers that the businesses care about them, rather than just being interested in their money.

Raffle tickets can help retain customers during periods of financial strain. Examining economic trends, the prices of items keep increasing yearly whereas the disposable incomes of households keep decreasing. Levinson (2016), in a Harvard Business Review article, discusses that half of the respondents surveyed by the Pew Research Center in 2016, agreed that life is more expensive currently compared with 50 years ago. Raffle tickets provide consumers with the opportunity to win prizes that they could not have afforded at the time. Definitely, an organization that offers a basket-worth of products as gifts, is likely to attract and retain buyers.

Companies can also utilize raffle tickets to fund a consumer’s interests, thus retaining them in the long-run. For instance, Whole Foods Market could distribute raffle tickets to consumers; the reward could include providing food stuffs to a poverty-stricken community of choice. In their research, Mohr, Webb, & Harris (2001), recognized that companies increase their profitability by demonstrating social responsibility.

For new establishments, employing raffle tickets, especially during their launches, could attract and retain customers. Primarily, persons are fascinated about the chance to win prizes. The organization could provide tickets to buyers after purchasing items or to window shoppers. Winners would eventually buy items from the stores as they have benefited from a great customer experience. Moreover, the winners promote the brand positively by informing their peers of their positive incident. Customer experience management or CXM is considered pivotal for businesses in maintaining consumer loyalty (Wilburn, 2007).

Utilizing raffle tickets during holidays is strategic for businesses. Families shop excessively during Christmas and Thanksgiving. When businesses offer raffles during these holidays, they gain a competitive advantage over those firms that do not employ the promotional strategy. Also, by promoting outstanding prizes, the business might encourage shoppers to purchase more items to increase their probability of winning.

Through raffle tickets, companies can create yearly, themed traditions. Social media sites, like Facebook and Twitter, can be used to promote events. Also, organizations can feature previous winners that benefitted from the promotions. In her essay, Foster (2017) highlights that participation in raffles “have become traditions to some families.” Not only would such events increase loyalty, it would also attract consumer engagement due to the positive experience gained.

Fundamentally, utilizing raffle tickets is strategic for retail and service businesses. Consumers remain loyal when organizations gift them for their purchases and take part in social responsibility. Additionally, having yearly promotions encourages loyalty as customers feel that they are part of the organization. Essentially, firms derive promotional and customer retention by incorporating raffles in their marketing efforts.

 

 

References

Foster, S. (2017). The benefits of having a business raffle. Retrieved from

The Benefits of Having a Business Raffle

Levinson, M. (2016, November 29). The problem with the US economy isn’t something

politicians can fix. Harvard Business Review. Retrieved from https://hbr.org/2016/11/the-problem-with-the-u-s-economy-isnt-something-politicians-can-fix

Mohr, L. A., Webb, D. J., & Harris, K. E. (2001). Do consumers expect companies to be socially

responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer affairs35(1), 45-72.

Wilburn, M. (2007). Managing the customer experience: A measurement-based approach.

ASQ Quality Press.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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