Businesses – Why Not Hold a Raffle?
Businesses in both the retail and service industry can derive promotional benefits and customer loyalty by utilizing a raffle in their marketing efforts. Raffles involve a multitude of potential consumers, increased publicity, and great customer involvement. Each industry may gain wonderful benefits through implementing a raffle into their marketing strategy if done effectively.
In the retail industry, customers are drawn towards tangible goods and must be persuaded by attributes such as packaging and labeling. Consumers are attracted to a products display, quality, price, and popularity. In order to derive promotional benefits from marketing efforts such as a raffle, businesses must choose intriguing products that many customers will want to own. By attracting to a large target market, a business will increase raffle sales and gain greater publicity within the community. During a raffle, the competition sometimes becomes more attractive than the actual prize- making it necessary to sell as many raffle tickets as possible. As a business promotes their upcoming raffle, it is also promoting its products and brand name. This will increase brand recognition and leave the community with definitive attributes for the retail products and company. Promotional strategies that actively involve the community, such as raffles, tend to increase positive public relations and the communities brand loyalty. As the end of the raffle draws near and prizewinners are announced, business owners can rest assured that they have just created many loyal customers. Winners of the prizes will be likely to continue to return, as they have been granted a nearly free product, giving them a great experience with the business and if nothing else ensuring excellent word-of-mouth promotion. Other consumers involved in the raffle will be likely to return as well, as they didn’t receive the prize they had fixated on for such a period of time and are now obligated to make the purchase. Members throughout the community remain potential loyal customers as well, as they draw on the positive comments and feedback from those who now have experience with the business and its’ products.
Within the service industry, businesses must be much more reliant on word-of-mouth advertisement and the overall customer experience to promote their services. Customers rely on other consumers’ feedback and the reviews of a service to determine the quality of the product. By utilizing a raffle to promote a service business, customers may be given the incentive to try the services being offered. A raffle drawing promoting an excellent service for a low ticket price will not only attract customers throughout the community, but will also ensure increased promotion post-raffle as clients rave about the services they received to other potential clients. Since the service industry is so reliant on public relations and the overall brand image, the business would most effectively promote the raffle during community events such as festivals, concerts, and within schools- offering kids incentives to sell raffle tickets. By increasing public knowledge of the businesses’ promotional efforts and creating a broad target market, there is more likely to be an active community involvement as well as an increase in overall customer loyalty. The more customers that are aware of the goods and services offered by the business, the increased opportunity the business has to sell to potential clients and create positive customer experiences.