What Is the Value of Your Text Subscriber List?

Value of a Text Message List in Text-to-Win -sweeppea.com

A Mobile Subscriber Is Worth Way More Than an Email SubscriberYour text subscriber list is a valuable asset and should be treated as such. But just how valuable is it?

If you use text (SMS) marketing for your business, you need to know these numbers. Here’s how to determine the value of your text subscriber list.

What Factors Affect Text Subscriber List Value?

The factors that affect text subscriber list value include:

  • Open rate
  • Sales / profit per sale
  • Lifetime text subscriber value

Your list of 3,000 subscribers (with 95% open rate) is more valuable than a larger email list. That’s because the text message open rate is 98% while the email open rate is just 17.85% for the marketing and advertising industry.

In order to get an equivalent 3,000 subscribers to read your message, you’d have to have larger email list, with say 30,000 email subscribers and a 10% open rate. 

Calculating the Value of Each Text Subscriber

In marketing, the value of each text subscriber determines the success of your marketing campaign. In simple terms, the value of a text subscriber is:

  • What each text subscriber is worth to you in dollars and cents. A text subscriber could translate to a specific sales amount for your business or have a brand awareness value assigned.
    • For ex. Send a $5 Off $25 text coupon and if 10% of 3,000 subscribers use it, your sales would be $6,000 from one text message. 
  • What it costs to get a new text subscriber. This would be the amount of money that it costs to run a text-to-win campaign, including overhead, divided by the number of text subscribers that a campaign brings in.
    • For example, with Sweeppea, a text-to-win sweeps can cost as little as $999 to run for one month and can bring in 5,000 participants. In this case, the cost to acquire each participant is $.20 cents. To this, you can add any promotional costs. Psst! Here’s how to promote your sweep for free.

Once you figure out what these numbers are, you can plug them into an equation to help you determine the value of your text subscriber list overall. If you need help with figuring this out, send us a message.

Ready to get your text-to-win sweeps started? Reserve Your Sweepkey now to get started in under 10 minutes.

Maryhill Winery Offers Trip to Wine Country in Text Message Sweepstakes

Maryhill Winery Offers a Trip to Wine Country in Text Message Sweepstake

Maryhill Winery chose a text message sweepstakes to target consumers for its winery and wine club.

Named “Pacific Northwest Winery of the Year”, Maryhill Winery launched a wine club featuring its award-winning varietals and sought to promote the club and its wines using text.

It used a variety of channels to promote this sweep, including television, print and online advertising, social media outreach, event promotion and retail POS.

Objectives:

  • To create a fun and engaging text-to-win sweepstakes to promote Maryhill Wines.
  • To increase wine club membership.
  • To gain a database of participants to re-market offers via text message and emails.

Prize: The Grand Prize consists of a trip for two to wine country, including a two-night stay at Inn of the White Salmon, dinner at Henni’s Kitchen & Bar and a VIP tour and tasting at Maryhill Winery.

Results: Hundreds of participants entered in this campaign. They will continue to build their mobile database with others.

What Happens When You Can’t Reach Your Sweepstakes Winner?

You’ve selected a winner for your sweepstakes and now they aren’t responding to any of your attempts to get them to come forward and claim the prize. So what happens when you can’t reach the winner?

Believe it or not, this is a common problem with sweepstakes. Either the company can’t reach the winner or they leave messages and the winner doesn’t get back to them in time.

Here’s what to do to ensure that your sweepstakes isn’t derailed by a winner who has gone missing in action.

Include Guidelines for Official Winners

Your official rules should state how many days winners have to respond and what will happen if a winner doesn’t respond. At Sweeppea, we help clients build rules that say that the potential winner has a number of days to respond.

The amount of time you give winners to respond can vary, but it shouldn’t be too long. Also, the Official Rules will usually have a date by when you will publicly announce a winner, so you need to keep this in mind, as well.

If no response is received, then the rules should state that the company will select another winner. This helps companies avoid any legal problems and helps to keep things moving along for the sweepstakes so you can publicly announce a winner in time.

Steps to Follow When Winners Don’t Respond

In some cases, not all is lost when a winner doesn’t respond. In fact, steps you can take include:

  • Wording the language of your campaign so that any person who is chosen is only a “potential winner” until they are confirmed as the winner.
  • Giving winners notice by phone message or email that they have “X” number of hours to respond (whatever time frame you decide to give them per your Official Rules) from when they are first contacted or the company will have to choose another winner.
  • Once that time is up, randomly select another winner and inform them they also have “X” hours to respond.

When the potential winner responds, verify the winner to ensure they meet the Official Rules or criteria (over 18, US resident, etc.).

Add a Pre-Sweep Step

Adding a pre-sweep step ensures that your rules have a provision for this response period to protect your company.  Our Official Rules Wizard includes this provision to protect our customers.

Asking for your participants’ email addresses is another pre-sweep step is to consider. Our text-to-wins automatically collect mobile numbers, but your online form could also collect emails as well.

Mobile phone is the best method of contact, but it doesn’t hurt to have another option. 

Reserve Your Sweepkey now to get started in 10 minutes or less.

bd’s Mongolian Grill Restaurants Drive Foot Traffic with Instant-Win Text Sweepstakes

See how bd's Mongolian Grill Restaurant Uses an Instant Win Text Sweepstakes to Celebrate 25th Anniversary

The campaign run by bd’s Mongolian Grill is a good example of how a restaurant or store can drive foot traffic with a sweepstakes offering instant-win prizes.

How did they do this? By asking fans to visit a location and enter the 25th anniversary giveaway:

“Go to any participating bd’s location for the ‘bd’s 25th Anniversary Family Fun Giveaway’ word of the week. Then text the word of the week to 65047. Get a new word every week to enter! One entry daily. No purchase necessary.”

bd's Mongolian Grill

The many prizes boosted excitement for their fans. They marked their anniversary in a big way by offering not just a grand prize trip to the Caribbean, but also 2nd through 5th place prizes and tons of daily instant-win prizes as well. They chose instant winners each day using our automatic random winner selection feature.

Objective:

  • To promote the restaurant chain’s 25th anniversary with fun prizes in a text sweepstakes.
  • To increase customer visits by announcing a new Sweepkey weekly. Although no purchase is necessary, participants need to get the Sweepkey in store.
  • To build a database of interested consumers for future marketing of coupons and offers via text message and email.

Prize: The Grand Prize is a trip for a family of four to one of three Caribbean Beaches Resorts, including airfare.

Outcome:

  • Over 15,000 participants entered with a variety of instant winners daily
  • The instant win text sweepstakes ran on all 28 stores
  • Over 3% of all restaurant customers entered
  • The most effective ad placement was the table top signs
  • Social media engagement and sharing of the sweepstakes post was high in comparison to other posts

Client says: “We chose Sweeppea because we like the platform. It’s been a pleasure to work with Marcos and his team.”

Want to promote your own restaurant or store with an instant-win text sweepstakes? Reserve Your Sweepkey now to get started.

When Does Automatic Winner Drawing Make Sense and When Does Manual Winner Drawing Make Sense?

Your sweep is coming to an end and now it’s time to pick the winners.

You may have the option to choose them automatically (through your app) or manually.  But, when exactly does it make sense to draw a winner automatically and when is it best to draw one manually?

Here are a few things to consider to help you sort it out.

When to Use Automatic Winner Drawing

Automatic winning drawing is when sweep winners are automatically selected by a randomized algorithm from the pool of text-to-win participants.

Automatic winner drawings save time and ensure the results of your sweeps are always made available to your participants in a timely fashion.

This is an effective option when you need to select more than one winner or select a winner at a specific time. For example, if you do daily or weekly drawings, you can alert participants as to the specific day and time the winners will be selected.

When to Use Manual Winner Drawing

Manual winner drawings make sense when you need to ensure the winner actually meets the official rules of your sweep.

This type of drawing is required when there are age restrictions, such as in the case of a sweepstakes for an beer, wine or spirits company. For all liquor-related sweeps, you should verify the winner manually first.

However, if your sweep doesn’t have special restrictions or age requirements, you can feel free to draw the winner for your campaign automatically. You could always double-check that they’ve abided by the rules after initial contact.

What Do I Do About Participants Who Cheat?

Regardless of whether you choose manual or automatic winner drawing, you’ll still have people who think it’s okay to try and cheat.

At Sweeppea, we’ve worked really hard to design our systems to ward off the obvious signs of cheating, such as multiple signups with the same contact information.

However, it’s still up to your business to ask important questions to ensure you’re indeed awarding the prize to an eligible winner.

If you use automatic winner drawing, remind winners that they will have to undergo a final verification before any prizes are awarded.

If you draw a winner manually, use this extra intervention step to ensure the winner is abiding by the rules.

Ready to start your text-to-win sweepstakes? Reserve Your Sweepkey now to get started in under 10 minutes.