Lure Reluctant Customers with Giveaways and Promotions

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A new article in The Wall Street Journal talks about how businesses are “resorting to a high-risk strategy: costly giveaways and promotions to lure the reluctant consumer.”

What this article falls to talk about is the HUGE potential giveaways, promotions and sweepstakes have to introduce potential customers to new products and services they may not have ever known about any other way.

In my article about supplementing your income with prize winnings, I talk about how many times I have been introduced to a new product or service through a sweepstakes and because of that introduction I became a loyal customer. The brand of vacuum cleaner, television, computer, and vehicle we drive has now become our favorite all because we won a prize.

I want companies large and small to find this article and hopefully change their opinion of “sweepers”. Too many times they see us as money-grubbing, free-loading, never-pay-for-anything-unless-it-is-free people who never would buy their product. And, while there are those who might think that way, they do not represent the vast majority of people who call sweepstakes a hobby. Companies don’t want us entering their sweepstakes, contests, or other giveaways because they ONLY want potential customers.

News Flash – WE ARE POTENTIAL CUSTOMERS!

I want to give you, the sweeper entering the giveaways, and companies, sponsoring the giveaways, some very specific instances in my personal life of prizes that turned us into loyal customers.

Furniture

In Connecticut we have a furniture chain called Bob’s Discount furniture. I HATED Bob’s commercials from the start and refused to buy anything from his stores because I thought his approach was too “in your face” and his furniture MUST be cheap.

In September of 2002 we won a gift certificate to the Bob’s Discount Furniture stores. We picked out a great loveseat that we still have today. It has been in our house, to our son’s house, then to my daughter-in-law’s mother’s house and now back to our house again this past December. That is the BEST couch we ever had and it is so comfortable. It is still in mint condition after all of these years. Can you say that I am now hooked on Bob’s Discount furniture stores? Yes ma’am I am!

Oh yeah, and Bob, I even like your commercials now. They have toned down a bit and are much better. I guess when you make a boatload of money you don’t have to shout so much anymore. Bob was just named furniture retailer of the year too. Hey, and the free ice cream and coffee you give out when someone comes into your store is the best! Check it out – I’ve gone from a HATER to a LOVER all because I won a prize and you can bet that my next furniture purchase will be from Bob’s Discount Furniture.

Companies are you listening?

Computers and Web hosting

My youngest son won a Dell laptop back in 2003 and now every computer in our house is a Dell brand computer. I was so impressed by this laptop that I decided to purchase our next 3 computers from Dell. And, I remain a loyal customer to this day. Now, how’s that for using a sweepstakes to gain loyal customers?

When I ran a computer consulting business I would go to individual client homes to fix their computers, set up computers, troubleshoot computers, and teach them how to use their computers. I also taught classes in the local area on how to use computers. What brand of computer do you think I recommended to my clients? You got it – DELL! I ran this business for 10 years and I know I created many more loyal Dell customers and it was ALL from that initial laptop prize win.

I also did web design work for 11+ years and because I won a year of web hosting from YourSite I would also suggest their web hosting packages to my clients. I sent many customers to them over the years. It appears they have changed their format and are now only selling eCommerce setups but still I think they are a solid company to work with if you are in the market.

Internet Provider and Software

Another example, waaay back in 1997 I won a year of AOL Internet services. At the time it was for a dial-up connection. After that year was over we stayed with AOL and only canceled our subscription LAST YEAR! Can you believe that? We kept the AOL service for 11 years all because we won the initial year from a sweepstakes.

I have so many stories like this. I could even be a spokesperson to go into companies and teach them how to use sweepstakes to build their brand and create loyal customers. Hey, if you want me to come into your company and tell my story, just holler, email, or fill out the contact form.

After I won that year of AOL I won my first piece of software from an AOL contest that was held through their service. I won Microsoft Works 4.0. I learned that piece of software inside and out and that was the basis on which I started my computer consulting business. From there I learned every piece of Microsoft software available and have been a loyal Microsoft customer every since.

Here are some less extreme examples from sweepstakes prizes we have won.

I never heard of Green Mountain coffee until I won a year’s supply in 2002.

I didn’t know what a Dirt Devil was until I won a vacuum cleaner back in 2004.

We didn’t shop at Shaws grocery stores until I won a $1,000 in gift cards in 2007.

Last year we won a year of Netflix movie rentals and once that year is up we will be staying with Netflix and paying for a full subscription. I was so impressed by their service they won me over. I would probably have never tried if it I hadn’t won it.

Of course, as a sweeper, cash is king, but from the perspective of the company sponsoring the sweepstakes or contest, the focus should be on branding your product or service and getting your product in the hands of that winner. You CAN build your bottom line by sponsoring a giveaway and create loyal customers in the process and I have just proven it to be true!

Back to the Wall Street Journal article. They do go on to show the potential of sponsoring a giveaway.

The Zazu company:

….dropped the ads and, as part of a new promotional effort, launched a blog. Periodically, Zazu posts a giveaway on the blog — say, jewelry, scented candles or a stationery item. Anyone who leaves a comment on the blog is entered in the contest.

Each giveaway costs the company between $10 and $30. But shoppers are drawn to the featured item of the week and the buzz generates more sales, Mr. Haddad says. The blog and the promotions have boosted online sales, he adds, emphasizing that nonwinners are buying the giveaway item as well as other things.

While the article seems to indicate that running an expensive promotion or sweepstakes can be a mistake for some companies, I know that there are plenty of ways of drawing consumers through these types of promotions without breaking the bank.

How many times have you, the person entering the giveaway, entered a sweepstakes that had only 1 prize? 10 prizes? 100 prizes? I know I have, even though I knew the odds weren’t so great that I would win. But, entering that sweepstakes introduced me to a new website, company, product, blog, or service that I would not have known about otherwise.

And, if a company wants to run a giveaway they can do it themselves by setting up a blog or by using Twitter to run a Twitaway (Twitter Contest), and they can promote it themselves through sites like mine, on their own website, on Twitter, Facebook, MySpace and other social networking sites. I promote sweepstakes, blog giveaways, and just about any other type of contest, sweepstakes, or giveaway you can think of FOR FREE! Just email me or fill out the contact form.

I also promote products and services that will benefit my readers as well as freebies, coupons, and anything else in the FREE world and there are other sites who will do the same for you as well.

What I know about business is that you have to be creative. You can’t do what you have always done and expect new results. As times and people change, and as technology evolves you have to change as well. I am a business owner selling products online so I know all about it. When we started our business we did things a certain way and overtime as the economy changed we adapted and made changes that keep us in business today. My motto: Adapt or be left behind! Hey, and why did I start that business? You guessed it – I won a trip to France and it inspired us.

Businesses do not have to go under because they are spending a ton to market their product or service. Why not run a giveaway or sweepstakes and see how it can build a loyal customer base. You will be pleasantly surprised at the results.

Photo credits: Bob’s Discount Furniture, AOL, Netflix, Dell

Technorati Tags: wall+street+journal wall+street marketing giveaways promotions business customers consumers

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