Optimizing the launch of a product or increase the engagement among existing clients is an activity that just a few know how to increment. I am talking about the use of Giveaway and Raffle, two techniques that are very popular in the U.S.A. and growing very fast withing the European market.
In fact the use of Giveaway was born in the United States thanks to influencers and personalities of the web to thank their followers who faithfully support them daily on social networks and follow their contents, this type of competition is often used at the achievement of important numbers - 10k, 50k or 100k followers for example or special occasions.
The giveaways have spread and continue to flourish above all by beauty gurus and fashion icons that are giving away products bought from them or made available by brands - the result of commercial collaborations. They have a limited and short duration, which can vary from the day following to about a month. The winners are usually drawn either automatically in a random way or by decision of the same influencer, for example by selecting between the comments.
The giveaways are very successful in that they reproduce the playful element in a game context to leverage users emotionally and stimulate their participation and competition in order to obtain fulfillment by winning a prize offered by the promoter brand. There are many advantages in the use of giveaway, such as: increasing brand reputation, maximization of interactions, visibility and virality increment, user loyalty, and acquisition of profiled leads.
On Instagram, the hashtag #giveaway has more than 23.6 million posts, so why not organize one? Because despite such high numbers and very high diffusion, giveaways are more complex than they appear. In fact, from a legal point of view, they are considered like a prize competition and must therefore be regulated according to the rules in force, which are currently very restrictive. You can find more information on this page.
On the other hand, the raffle is a sort of lottery, linked to launch events, in which the participants can exclusively purchase certain products, usually in a limited edition. This marketing strategy is different from the Giveaway activity because it creates high expectations around the product and engages the most passionate consumers of individual brands who are looking for a cheaply model in limited edition. Raffles have a limited time in which participants can register to participate. Usually the client must fill out a form with their personal data and consent their processing, according to the new General Data Protection Regulation (GDPR).
The raffle helps to make the product unique, exclusive and highly attractive and this marketing strategy makes each launch a real event that Call the customer to Action. In addition, the limited offer provides additional value to the brand, thus helping to outline and strengthen the Brand Identity.
An example, is the raffle organized by Nike for the collection of sneakers The Tend, in collaboration with Off-White, an Italian streetwear and luxury fashion brand. To enter the lottery, the customer had to access at his NikePlus personal profile or register for free and, in case of winnings, the cost of the product can be immediately charged, because the customer during registration had already provided all the payment informations. These sweepstakes are in fact particularly suitable and widespread among international brands such as Nike and Adidas, who use their Brand Reputation to organize these lottery.
Giveaway and Raffle are two different strategies of Sweepstakes that allow the brand to increase awareness about its products and engage the customers to buy them. By optimizing the use of those two strategies and applying specific techniques related to the brand, they can increase the profits through a lead generation activity.
E-Business Consulting can help you in the creation and management of a contest competition thanks to its experience in the sector, creating a complete project. Do you want to organize a prize competition for your business? Call us now for a free quote and we will develop an ad hoc project.