Your Business Can Benefit From a Raffle Promotion by Courtney Belford
Your Business Can Benefit From a Raffle Promotion by Courtney Belford
Marketing efforts vary widely by approach and from company to company. Some offer a direct approach while others a more subtle option. Raffles are defined by Merriam-Webster as a means of raising money by selling numbered tickets, one or some of which are subsequently drawn at random, the holder or holders of such tickets winning a prize. Raffles are a beneficial and rewarding way to acquire money for a business and are extremely helpful in the way of maintaining customer loyalty.
Just as the lottery offers players with a chance of winning that keeps them coming back for more, as does raffle drawings. With the same type approach as the lottery, raffles keep individuals (and in this case customers) anticipating what’s to come and anxious to find out the drawing results. The business approach of using raffles keeps customers interactive within the company and wanting more. This route is also great for word of mouth advertising. As one current customer tells a potential customer, it interests them and draws their attention to not only the raffle but also the business holding it! Before long, many customers are involved in the contest and from each one, a profit is earned.
When considering a raffle, we should look at the anticipated profit margin. Sure, up front the business has to output X amount of cash for the prizes (which should be somewhat high scale in order to intrigue customers to participate). From each person who buys into the raffle, a certain amount of money is collected, and by the end the business is left with quadruple what the original output amount was for the item (4X). Let’s not forget about the raffle tickets themselves. Instead of an ordinary generic ticket, businesses should put thought into providing a ticket that has the company logo or name on it. This ensures that the name stays in the customers mind, and that they have a reminder whenever looking at the ticket of the company that backs it.
Raffle drawings keep the customer base constant or increasing also by providing a sense of a welcoming and interactive organization. By virtue of fun games and activities, such as raffle drawings, customers get a sense of involvement with the business which speaks volumes in terms of sales and customer loyalty. Setting the atmosphere to one where the customers feel engaged and part of the team always turns out beneficial for the company and results in increased sales. Raffles provide a perfect example of a way in which to do this.
I currently work for an air conditioning company, and semiannually we do raffles to win a new air conditioning system (which carries quite a hefty price tag)! We don’t charge customers to enter the drawing, however since we began putting this activity into effect we have seen a substantial increase in the amount of new customers who call for service. On our computer database software we have a section for reference of where/whom the customer was referred by. Currently we have 349 new customers who have been referred – by some way or another – via the raffle drawing. Whether it be a friend of a friend won the drawing and spoke good word of the company, or even just by word of mouth from neighbor to neighbor that applied for the raffle. This proves that raffle drawings really do wonders in the ways of marketing the company.
Overall, raffles are a great way to not only interest prospective customers in one’s business, but also to keep the current customer base loyal and involved in marketing attempts. They promote customer involvement in the business and depict an amusing and pleasurable organization. With the usage of raffle drawings, one not only can please customers by giving them the opportunity to win prizes, but also create a sense of involvement for the community to which you’re servicing.
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Contributed by Courtney Belford
December 19, 2015