Are Your Marketing Competitions Helping or Hindering Your Sales?

We all know the power of a good competition. They generate buzz, boost engagement, and get people talking about your brand. But as marketers, we need to be careful that our exciting prize giveaways don't inadvertently lead to a dip in actual sales.

Are your marketing competitions helping or hindering your bottom line?

Think about it: if customers believe they have a chance to win a product for free, they might hold off on making a purchase, hoping to snag it in the competition. This can lead to delayed sales, or worse, lost sales altogether if they're unsuccessful and decide to go elsewhere. Suddenly, that engagement boost isn't looking so rosy.

So, how do we avoid this pitfall and ensure our competitions actually enhance sales, rather than cannibalise them?

Here are a few things to consider:

1. Targeted Competitions: Instead of broad product giveaways that could deter existing customers, consider competitions that target specific customer segments. Perhaps you have a new product line you want to promote? A competition focused on that specific product won't impact sales of your established best-sellers. Or, perhaps you want to re-engage lapsed customers? A targeted competition could be the perfect way to bring them back without affecting your current sales figures.

   
   

2. Strategic Timing: Timing is everything. Avoid running competitions during peak sales periods. Why risk losing guaranteed sales for the chance of a future win? Instead, consider aligning your competitions with slower periods to boost interest and activity without cannibalising your regular sales. A well-timed competition can be just the thing to inject some life into a slow sales cycle.

   
   

3. Alternative Incentives:  While the grand prize is certainly enticing, consider offering smaller, guaranteed rewards for participation, like discounts, exclusive content, or early access to new products. This can encourage engagement without solely relying on the allure of the grand prize, and it can also provide a tangible benefit to participants even if they don't win the top prize. This can be a great way to build goodwill and foster a sense of community around your brand.

   
   

4. Measure and Analyse:  Data is your friend. Track sales data closely during and after the competition. This will help you understand the true impact of your campaign and refine your strategy for future competitions. Are you seeing a dip in sales? Are certain types of competitions more effective than others? Analysing the data will give you the answers you need to optimise your approach.

   
   

Let's use competitions strategically to enhance, not hinder, our sales efforts. By considering these points, you can create marketing competitions that are not only engaging but also contribute positively to your bottom line. Stop guessing and start measuring – your sales figures will thank you.