There’s been a lot of discussion about which option brings in more customers: smaller sweepstakes prizes, such as movie tickets, or larger sweepstakes prizes, such as a dream vacation to a tropical island. While the choice of prizes largely depends on the brand, there may be benefits to using both types of prizes.
Here is how to decide when to go big or stay small with sweepstakes prizes.
Large Sweepstakes Prizes Drive Brand Awareness and Sales
A large prize offers many benefits for a brand. When the text to win is advertised in a retail location, the promotion can help the brand stand out from the competition.
With a chance to win a huge prize, of $1 million for instance, chances are you’ll see an increase in sales and customers purchase your product simply to learn more about your brand with the ultimate goal of being selected as a winner of the sweepstakes.
Honda Dealers of New England used a text sweepstakes to attract thousands of entrants by offering a chance to win a new car. The company managed to generate sales leads for their dealerships by running a text to win during professional hockey and football games.
Smaller Sweepstakes Prizes Provide an Ongoing Source of Leads for Your Business
While big prizes certainly attract a lot of attention, there is also a case for offering smaller sweepstakes prizes.
Firstly, smaller prizes are less expensive and can be awarded to more winners. Smaller prizes also allow your brand to run the text to win promotion more frequently, ensuring a steady source of new leads and customers.
Giving away many small prizes also gives people the feeling they can actually win. This will bring out even the most skeptical participants who are now more likely to enter. They’re also more likely to re-enter your future promotions, even if they don’t win the first time, because it’ll seem as if the odds are in their favor with smaller, more frequent prizes.
Ultimately, the decision to offer large or small sweepstakes prizes should be driven by the sales needs of your business. Think of large prizes as a way to make a big splash, while smaller prizes help keep the momentum going for your brand.