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.

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.

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.

Who Needs Abbreviated Rules for Their Text-to-Win Sweepstakes? Alcohol Companies and Others

If you’re running a text-to-win or sweepstakes, abbreviated rules are required by several states’ statutes. This means having an abbreviated version of your official rules on your display. You simply can’t run a campaign without these abbreviated rules if you want your text-to-win to be considered legal.

Abbreviated rules aren’t restricted to certain types of vendors. In fact, they are required simply because you are running an SMS marketing campaign. The abbreviated rules must also be made available prior to entry into your sweeps.

Here is the scoop on abbreviated rules so that you know what to include with your sweeps.

Special Restrictions for Alcohol Vendors

For alcohol vendors, there are 7 states that require that your text-to-win abbreviated rules be approved by an Alcohol Control Board. These states are:

  • Alabama (AL)
  • Indiana (IN)
  • Maine (ME)
  • Maryland (MD)
  • North Carolina (NC)
  • Vermont (VT)
  • West Virginia (WV)

Abbreviated Rules Examples

One thing you also need to keep in mind that most statutes require that these abbreviated rules appear at a size that is “clear and conspicuous.”

As you draft your abbreviated rules, you should also make sure to follow common abbreviations of your original phrases to ensure that your abbreviated rules meet legal specifications.

Here are some examples below:

  • “NO PURCHASE NECESSARY. A Purchase Will Not Increase Your Chances of Winning a Prize.” abbreviated to “NO PURCHASE NECESSARY”
  • “Must be a legal resident of the 50 United States and District of Columbia” abbreviated to “Legal resident of the U.S.”
  • “Sweepstakes begins at 11:59 p.m. EST on February 1, 2017 and ends at 12:00 p.m. EST on April 30, 2017” abbreviated to “Sweepstakes begins on 2/1/17 and ends 4/30/17.”
  • “You must be 18 or older to enter” abbreviated to “At least 18.”

These are just a few ways to write abbreviated rules if you have space restrictions.

Also keep in mind they need to be just as clear as the official rules. So avoid using any abbreviations that use unclear language.

Further Considerations for Drafting Abbreviated Rules

Abbreviated rules aren’t the only legal items needed for a text-to-win, see our post about the legal docs needed for a text-to-winhere

Certain states, including New York, Rhode Island, and Arizona also require that you register your sweep with the appropriate regulatory agency if the prizes are over certain dollar amounts.

While our platform suggests ideas on how to draft abbreviated rules for your text-to-win campaign, you should still consult a lawyer to make sure that you’ve covered all of the bases.

Ready to start a text-to-win campaign with Sweeppea? Take the first step and Reserve Your Sweepkey now.

How Consumer Products Can Get More Retail Space With a Text-to-Win Sweepstakes

Get More Floor Space with a Text-To-Win Sweepstakes

Competing for a shopper’s attention today is like trying to flag down a racer in the middle of Nascar. It’s a fast-paced world and decisions are split-second quick.

So how do you get more eyeballs on your product or more floor or shelf space for attention? Put your product center stage with a big “Text to Win” sign above it and create some excitement.

Use our text-to-win sweepstakes to get the extra space, build excitement and maximize your returns.

Here’s how it works in 3 easy steps:

  • Get end cap space for your sweepstakes: This type of promotion is evergreen, so it’s not dependent on a holiday or season (although you can use one). Run one during a slow period or to gain sales lift in a particular store or area.
  • Choose a prize that will get shoppers to enter: Entering by text is super easy, but it’s the prize that will motivate shoppers to enter. Get them motivated and position your brand for success with a good prize.
  • Setup and promotion: Set up your text-to-win with Sweeppea. To get started, just choose a SweepKey (the word they’ll send by text for entry). We’ll walk you through the process online, while you set up to promote your sweep in store. A header for the end cap will grab attention and show how to enter (as shown above).

Grab eyeballs and make your product the star of the store. With this setup, consumers will buy your product and sign up for your text-to-win sweepstakes at the same time.

Spur Sales During & After the Sweepstakes

Research shows that 83% of shoppers have made an unplanned purchase based on a promotion or coupon. Get them to buy and enter your sweep while they’re in the store. Once the promotion is over, send additional offers by text to keep them coming back.

Remember, you will keep the list of entrants for future marketing, MULTIPLYING your sales and your customer base.

Build your own text-to-win sweepstakes. See our features to get started.