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Top 7 Reasons why Companies Sponsor Sweepstakes

By Abby Bramski

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Tons of online sweepstakes happen every day. To the participants it just seems like a chance to win some cool stuff, but there’s a whole marketing side many people don’t know about. So, why do company’s sponsor sweepstakes?

  1. Branding.

    Fun, family-friendly contest just encourage how reliable and honest your company is. Word-of-mouth (WOM) marketing is growing more and more thanks to social media sites like Facebook, twitter, blogs, etc. The sweepstakes creates “buzz” for the company’s reputation and products. Branding is a tool used in customer acquisition marketing, aka gaining leads.

  2. To drive more traffic to their website.

    To sign up for the sweepstakes, you must go register on the company’s website. This drives more traffic to their website and increases their page rank on search engines. Also, you might get drawn in by a product or service while you’re on the website and go spend money there.

  3. Emailing lists.

    When you register for the sweepstakes, the form always asks for your email. This isn’t just to notify you of the results; it’s to email you newsletters and advertisements. Because of this contest, that company now has a huge, solicited list of potential leads to email.

  4. To produce advertising content.

    If a contest asks you to take a photograph, write an essay or write a recipe, you may see your submission in their company’s advertisements. Instead of paying a lot of money for a marketing agency to write this material, they’ve just received it for much less.

  5. Market research.

    Often to register it asks you to fill out a quick form. This has nothing to do with the contest in most cases, but is used as market research. Now the company knows more about their market easily.

  6. To retain leads.

    Companies can strengthen the relationship between customer and company by offering sweepstakes. You are interacting with the company, receiving their products, and thinking highly of them.

  7. To get you hooked on their products and their company.

    If you win, they usually let you sample their product or have it for a specific amount of time. Well after that they hope you will like it and keep buying it and also think highly of their other goods.

ABBY BRAMSKI.

http://www.responsemine.com/customer-acquisition/

Source: http://Top7Business.com/?expert=Abby_Bramski

Article Submitted On: June 16, 2011