Generating leads from competitions

Many of us spend a lot of time on website development and customisation but don’t do a great deal to increase website conversions and generate new leads.

A competition (also known as a trade promotion or lottery) can be an effective way of increasing leads generated from your website. Form conversion rates before and during the competition period give you a clear method of reviewing the effectiveness of your competition.

The key to an effective competition is to ensure that it is as simple as possible to enter and to ensure that the right people know about your competition. Asking for excessive personal information such as date of birth will only serve to drive potential entrants and leads away.

A chance-based competition, which may require lottery or trade promotion permits, requires minimal effort from competition entrants. Winners can be determined by a competition draw.

For a complete and obligation free quote, contact the quote form on our website or send us an email to info@permitzgroup.com

Three ideas for your next competition

Various competitions

Looking for a fresh competition that will stir up your customers, infuriate your competitors and increase your sales?

Here are three out-of-the-box ideas for your next promotion.

1. Ongoing rewards and a chance to win Big! The best way to run a competition is to keep it going and to keep giving. Many of the most successful competitions we have seen give away small prizes such as DVDs, event tickets, and cash on a weekly or monthly basis. A blanket permit allows you to run a number of competitions with smaller prize pools over 12 months. On key dates, to coincide with product launches, or events, you can then obtain individual permits to give away larger prizes.

2. Instant win! An instant win competition gives entrants an immediate sense of winning, can encourage multiple purchases and allows you to award prizes to multiple winners.

Instant win promotions need to reward continual participation by your entrants. Ensure that you give a large number of prizes and a smaller number of large prizes. Your minor prizes could be discounts or free products or services that you offer.

3. A chance at a Million Dollars! A million dollar prize pool does not need to cost you a million dollars. Prize insurance allows you to offer prizes in the order of $100,000, $500,000 or one million dollars for a fraction of the total prize value. Such a competition gives a winner the chance to win a large prize. Typically, you would draw one entrant who then attends an event where they are required to pick an envelope out of a possible hundred. One envelope may contain a million dollar cheque whilst the others contain a consolation prize. No matter which envelop your winner picks, they walk away happy.

Permitz have been involved in a very large number of innovative promotions, giving away millions, giving away trips to virtually every continent. Permitz can look after terms and conditions and competition permits for your next competition.

Notifying winners

Notifying winners can be a lot of fun, but also needs to be done carefully! Winners will be overwhelmed to hear that they have won something from your company. Many then go on to be ambassadors of your brand.

It is important to take care when notifying winners, as mistakes can be costly. In one case, a Junior Marketing Assistant conducted a competition draw before the scheduled draw time, then contacted the winner, and then went out for lunch. The Marketing Manager, unable to reach the Assistant, assumed the draw had not occurred, so conducted a second draw and notified a second winner. The prize was valued at over $25k..

Prior to contacting winners you should ensure that the winner’s original entry was valid i.e. that they completed the entry requirements, met any minimum age requirements and provided required information.

There may be some information that you need to award the prize, such as a prize delivery address, or preferred dates of travel. You can request this information in your email or letter to the winner. It is always best to have information you need in writing.

Winners must be notified in accordance with the competition terms and conditions. For a chance-based competition, you will need to notify winners in writing within 2 days of the competition draw. You may also need to publish their details on a website or in a newspaper.

Below is a sample letter that can be used to notify winners of a chance-based competition. Ensure that you change the wording to suit the circumstances of your individual competition.

Sample winner notification letter

Sample winner notification letter

When publishing a winner’s name on a website or in a newspaper the common format used is:  [Competition Name], [Prize Details] winner: First Initial] [Last Name], [Suburb].

It is a condition of competition permits that prizes be awarded in the manner specified in the competition terms and conditions.

Click here for a copy of the above document.

For more template notification letters, details on how to publish winners, and how to obtain competition permits, contact us- info@permitzgroup.com

 

Four important points when designing a competition

Each competition has a different measure of success. Common indicators of success may include:

  1. An increase in sales over the promotional period;
  2. Increased awareness of the brand or your products;
  3. The development of a potential customer database for email or direct marketing; and / or
  4. 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:

  1. 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.
  2. 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.
  3. The relevance of the prize. The competition prize on offer should be something that your target entrants actually want to win.
  4. 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.

Common errors to avoid when applying for a competition permit

The State gaming regulators review thousands of applications for competition permits each year. A significant amount of rework is required when errors are picked up by each State. In some cases you may be issued a permit in three of the four states and then need to lodge amendments in the first three, at additional expense.

Here are some of the most common errors:

1. Failing to include mechanisms for unclaimed prizes. Usually you will need to allow three months for prizes to be claimed. If they are not claimed, then conduct an unclaimed prize draw.

2. Not including dates and times for the competition open, close, draw and notification periods. It is important to note all of these dates and also to sick with your terms and conditions. There is always the chance that the lottery departments will actually attend your draw so you need to ensure that your entries are in order and that you conduct the competition draw on the time and at the place specified in your terms and conditions.

3. Not providing sufficient detail on the prizes to be awarded. For example, each component of the prize should be valued (based on RRP), if accommodation is a part of a prize then you should state the type of hotel or star rating plus the number of nights.

4. Excluding mandatory costs such as taxes on flights from a prize. You cannot require a winner to pay to take a prize. All mandatory costs need to be included in the competition prize.

If you have any questions on the above, send us an email to info@permitzgroup.com

Some commonly Asked questions

1. When do I need competition permits?

Competition permits are generally required if the winners of your competition are determined by chance. Typically this means the winners are either drawn or win instantly by, for example, scratching a game card.

Competition permits are not required if your winners are determined solely by skill and by qualified judges. Examples of skill-based competitions include those which typically ask a question to be answered in 25 words or less.

2. What if the draw/ my office is in a particular state, does this mean I only need permits from that state?

The location of the draw and/ or your office is irrelevant. However, if the competition is only open to residents of a particular state or it is a requirement that entrants come to a location in a particular state, you may only need competition permits from that state.

3. Do I need competition terms and conditions for a simple or a small competition?

Yes. Competition terms need to set out a number of important things. These include who can enter, when someone needs to enter, what restrictions are in place and what the prizes are. If you fail to have competition terms and conditions you will leave a number of questions unanswered. This increases the risk of a complaint or dispute later on. It is better to have clear terms and conditions which set out everything about the competition and avoid ambiguity.

4. What detail do I need about the competition prizes?

You should include as much detail as you can about the competition prizes in the competition terms and conditions.

Some state regulators specify particular information which must be included. For example, in VIC, you need to ensure you include the name or type (i.e. star rating and location) of any hotel included in an accommodation prize.

5. How long does it take to obtain competition permits?

Each state takes a different amount of time to issue a competition permit. We suggest you aim for three weeks from the day you apply to the day you need permits back. You will need to include the permit numbers in any advertising of the competition.

Permits needed for skill-based competitions

A common question is whether permits are needed for skill-based competitions. The simple answer is no.

When determining whether or not a competition is based on skill it is important to consider if there are any elements of chance involved in the determination of winners.

Chance-based competitions include:

1) Competitions where winners are drawn;
2) Competitions where winners are determined instant (and determined randomly);
3) Scratch and Win type competitions; and
4) Competitions where the prize is dependent on the number of entries or any other factor outside of the control of entrants.

There are some competitions which include elements of skill and chance. These competitions will still need permits. For example, in the first round of a competition entrants must answer a question which is then judged, in the final round a winner is drawn- this is a chance-based competition.

Any competition that is chance-based requires permits (from at least NSW if conducted on a national basis).

Voting competitions do not require permits so long as there are no elements of chance involved. i.e. if you conduct a voting competition, how will you determine the winner if two or more entrants have the same number of votes? If you conduct a draw, then permits would be required.

Changes to VIC process to obtain lottery permits

The Victorian trade promotion regulator, the VCGLR, have announced changes to the way they assess lottery permits.

As of now, you will no longer need to attach a copy of competition terms and conditions to applications submitted online. The online form is very long, much longer than any other state and already goes into a lot of detail already provided in the competition terms and conditions. The other change is that a National Police Certificate will no longer be required.

The two most important implications of the change are:

1) It is likely that VCGLR will be faster in the review of online lottery permit applications; and

2) It is now more important than ever to ensure your competition terms and conditions are compliant, are consistent and make sense. The VCGLR were an important safety check, picking up errors. As they are no longer reviewing online applications it is now very important that Promoters carry out proper checks of their terms and conditions.

The above changes are part of a wider trend which will see the end of the need for competition permits from Victoria, this is expected early to mid next year.

If you have any questions about competition permits in Victoria, send us an email to connor.james@permitzgroup.com

A great year so far

This year Permitz has been lucky to work on some very interesting, unique and exciting consumer competitions. Overall we have noticed an increase in divergence away from a traditional online competition, a focus on the collection of actionable data and an increased understanding of how consumers react to promotions.

We have worked with brands that we love. From Lavazza, The Coffee Club and Sony. Many of our clients have come up with unique competitions. We have also worked with exciting solar energy, technology brands and agencies.

So far this year, we have not only been involved in awarding winners millions of dollars in prizes, we have been involved with competitions giving away awesome prizes such as a trip to Necker Island to meet Richard Branson.

Permitz has expanded our services and can now literally manage every aspect of competition marketing. From competition terms and conditions, lottery permits to winner selection and notification.

The year is not over yet and we look forward to continuing work in such an exciting area.