Each competition has a different measure of success. Common indicators of success may include:
- An increase in sales over the promotional period;
- Increased awareness of the brand or your products;
- The development of a potential customer database for email or direct marketing; and / or
- The collection of data on your current or potential customers.
On review of over one hundred recent promotions, we have determined that there are a number of factors that influence success. These are listing in order of the priority as we have found them:
- Whether the right people know about the competition. A competition will not attract entrants unless the right people know that there is a prize on offer. Advertising should be aimed at entrants. Competitions are a very good call to action in an advertising campaign.
- Perceived odds of winning. Promotions which are widely advertised with fewer prizes on offer may be perceived to offer lesser chances to win. By offering major and minor prizes you can increase people’s perception of their own chances of winning.
- The relevance of the prize. The competition prize on offer should be something that your target entrants actually want to win.
- Ease of entry. Many competitions include layers of bonus entry mechanics or steps that entrants need to follow to enter. The harder it is to enter, the less entrants you will have.
The actual value of a prize is one factor that is not as important in determining the number of entries. Most entrants do not readily appreciate the difference between $5,000 and $10,000- they are both just a large sum of money & are hard to visualize.