{"id":18887,"date":"2015-09-03T12:26:47","date_gmt":"2015-09-03T17:26:47","guid":{"rendered":"https:\/\/crazyeggblog.wpengine.com\/?p=18887"},"modified":"2017-07-31T02:10:36","modified_gmt":"2017-07-31T07:10:36","slug":"marketing-giveaways","status":"publish","type":"post","link":"https:\/\/www.crazyegg.com\/blog\/marketing-giveaways\/","title":{"rendered":"Why That Giveaway Is A Terrible Marketing Idea"},"content":{"rendered":"<p>Just about every marketer has been there.<\/p>\n<blockquote><p>&#8220;Our numbers are looking a little low this month. We need to do something to boost sales.&#8221;<\/p>\n<p><strong>*Lightbulb*<\/strong>\u00a0&#8220;Let&#8217;s run a giveaway!&#8221;<\/p>\n<p>&#8220;That&#8217;s perfect.\u00a0The new iPhone just came out, so we can give one of those away.&#8221;<\/p><\/blockquote>\n<p>I&#8217;ve been in this situation myself, which is why I feel that I&#8217;m qualified to look back and say that this is a terrible idea.<!--more--><\/p>\n<p>On the face of it, an iPhone\/iPad seems like a great prize:<\/p>\n<ul>\n<li>It has significant monetary value\u2014even the most basic model goes for $800+<\/li>\n<li>It&#8217;s desirable\u2014right after launch the devices are often in short supply<\/li>\n<li>It&#8217;s luxurious\u2014upgrading phones is something people often put off until it&#8217;s essential<\/li>\n<\/ul>\n<p>However, there are also a number of key problems with giving away something like an iPhone, iPad or Apple Watch.<\/p>\n<p>It&#8217;s this set of problems that means the majority of iDevice giveaways probably fail to recoup even the value of the prize, let alone generate any sales.<\/p>\n<h2>Problem #1: It\u00a0encourages freebie-seekers and treasure hunters<\/h2>\n<p><img decoding=\"async\" width=\"800\" height=\"596\" src=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/09\/were-here-for-free-stuff.jpg\" alt=\"We're just here for the free stuff!\" class=\"aligncenter size-full wp-image-19026\" srcset=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/09\/were-here-for-free-stuff.jpg 800w, https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/09\/were-here-for-free-stuff-300x224.jpg 300w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<p align=\"center\"><i>We&#8217;re just here for the free stuff!<\/i><\/p>\n<p>Hands up if you have a dedicated email account that you use for competition entries or things you think might result in spam. I know I do.<\/p>\n<p>Now, compound that with all the blogs out there dedicated to aggregating all of the contests and giveaways out there.<\/p>\n<p>The result is often a list of thousands of entrants&#8230;very few of whom have any interest in your company whatsoever.<\/p>\n<p>Try to use the email list you gather during a giveaway like this and you&#8217;ll likely find both of the following:<\/p>\n<ol>\n<li>Low open rates<\/li>\n<li>High unsubscribe rates<\/li>\n<\/ol>\n<p>The latter can actually be <b>really damaging<\/b>, as it can result in your emails <a href=\"https:\/\/www.crazyegg.com\/blog\/avoid-email-spam-filter\/\" target=\"_blank\" rel=\"noopener\">ending up in\u00a0spam folders<\/a> if enough people report abuse or mark them as spam.<\/p>\n<h2>Solution: Find the right barrier to entry<\/h2>\n<p>Doing something to discourage entrants might seem like the opposite of what you want, but it&#8217;s worth thinking about: when it comes to leads,\u00a0<strong>quality beats quantity<\/strong>.<\/p>\n<p>On the other hand, asking for too much data or effort is a surefire way to discourage even potential entrants who really want the prize.<\/p>\n<p>A good compromise is asking people for an email address but offering them an extra chance to win if they share something, perhaps <a href=\"https:\/\/www.crazyegg.com\/blog\/twitter-chat\/\" target=\"_blank\" rel=\"noopener\">involving a hashtag<\/a>, on Twitter.<\/p>\n<p>Social media is still a very personal space, and <i>most people won&#8217;t share something unless it fits with the image they&#8217;re trying to project there<\/i>.<\/p>\n<p>This means that people who could\u00a0become enthusiastic about your brand\/product, and may have friends who could be as well, have a better chance of entering (and winning).<\/p>\n<h2>Problem #2: The prize is too&#8230;meh<\/h2>\n<p><img decoding=\"async\" width=\"1024\" height=\"709\" class=\"aligncenter size-large wp-image-18888\" src=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/08\/gift-wrapped-iphone-5c-1024x709.jpg\" alt=\"gift wrapped iphone 5c\" srcset=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/08\/gift-wrapped-iphone-5c-1024x709.jpg 1024w, https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/08\/gift-wrapped-iphone-5c-300x208.jpg 300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>Yes, a lot of people like iPhones. But a lot of people already <em>have<\/em> iPhones.<\/p>\n<p>Of the &#8216;brand new, still in box&#8217; iPhones listed on eBay right now, I&#8217;m willing to bet that a significant percentage were unwanted\u2014or more accurately, less wanted\u00a0than cold hard cash\u2014prizes.<\/p>\n<p>There&#8217;s a great post\u00a0on the\u00a0Vero blog about <a href=\"https:\/\/www.getvero.com\/resources\/marketing-giveaway\/\" target=\"_blank\" rel=\"noopener\">conducting an effective marketing giveaway<\/a>, and one of the big takeaways from that post for me was the importance of shock value.<\/p>\n<p>iPhone\/iPad competitions are <strong>everywhere<\/strong> these days, so\u00a0they just don&#8217;t have the desired effect of enticing entrants in the same way that they once did.<\/p>\n<h2>Solution: Give away something valuable to YOUR audience<\/h2>\n<p>This is where the thinking cap needs to go on. What would make <strong>your<\/strong> ideal reader\/customer&#8217;s life easier? If you can&#8217;t figure this out yourself, ask existing customers&#8230;just make sure to enter them in the giveaway as a thank you.<\/p>\n<p><img decoding=\"async\" width=\"620\" height=\"260\" src=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/09\/survey-your-existing-customers-for-prize-datas.png\" alt=\"survey your existing customers for prize data\" class=\"aligncenter size-full wp-image-19025\" srcset=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/09\/survey-your-existing-customers-for-prize-datas.png 620w, https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/09\/survey-your-existing-customers-for-prize-datas-300x126.png 300w\" sizes=\"(max-width: 620px) 100vw, 620px\" \/><\/p>\n<p align=\"center\"><i>Survey tools like <a href=\"https:\/\/qualaroo.com\/\">Qualaroo<\/a> can be placed on your website to gather desired prize information<\/i><\/p>\n<p>If you work for a brand that has their own product this is much easier. A one year subscription probably won&#8217;t cost you much, but it&#8217;s extremely useful to someone who actually likes the look of the product.<\/p>\n<h2>Problem #3: Marketers\u00a0often fail to effectively follow up after giveaways<\/h2>\n<p>Sometimes marketers leave a gap of months between setting up a contest and sending the first email to the resulting list. This is a big mistake, as the average reader will have forgotten about signing up in the first place.<\/p>\n<p>They&#8217;ll probably assume that you&#8217;ve bought the list from someone else and are now spamming them.\u00a0First impressions are important, and this is not the one you want to make when you&#8217;re sending what&#8217;s probably a promotional email.<\/p>\n<p>Whether it&#8217;s a follow-up about how to gain extra entries or a notification about when the winner will be drawn, you can start testing how responsive your new list is before the contest is even over.<\/p>\n<h2>Solution: Craft the perfect &#8220;loser email&#8221;<\/h2>\n<p>One of the best marketing emails I&#8217;ve ever received had the subject line &#8220;You&#8217;re a loser.&#8221; Unfortunately I can&#8217;t find it in my email inbox, so please help me out in the comments if you received\u00a0it too.<\/p>\n<p>What I do remember is that it was a follow-up to a competition I&#8217;d forgotten that I&#8217;d even entered.\u00a0The email announced that a winner had been drawn, which is HUGELY\u00a0important when you&#8217;re giving away a product\/subscription.<\/p>\n<p>Fail to announce a winner, and <b>some contest entrants will hold off purchasing indefinitely<\/b> &#8216;just in case they win&#8217;. Tell them that the winner has already been drawn, but offer them a discount on the product.<\/p>\n<p>Here&#8217;s a nice example of such an email from a <a href=\"https:\/\/blog.wishpond.com\/post\/115675435097\/how-to-incorporate-email-marketing\" target=\"_blank\" rel=\"noopener\">blog post over at Wishpond<\/a>:<\/p>\n<p><img decoding=\"async\" width=\"670\" height=\"670\" class=\"aligncenter wp-image-18889 size-full\" src=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/08\/post-contest-email-wishpond.jpeg\" alt=\"post contest email wishpond\" srcset=\"https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/08\/post-contest-email-wishpond.jpeg 670w, https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/08\/post-contest-email-wishpond-150x150.jpeg 150w, https:\/\/ceblog.s3.amazonaws.com\/wp-content\/uploads\/2015\/08\/post-contest-email-wishpond-300x300.jpeg 300w\" sizes=\"(max-width: 670px) 100vw, 670px\" \/><\/p>\n<h2>Final Thoughts<\/h2>\n<p>People often run\u00a0giveaways out of desperation: they want to build an email list to\u00a0boost sales for a given month or plug a hole in their funnel.<\/p>\n<p>As a result, they often neglect to make sure that the leads they&#8217;re generating are actually worth having.<\/p>\n<p>If you want to make giveaways part of your promotional strategy\u2014and there&#8217;s no reason why you shouldn&#8217;t, as they can be very effective when done well\u2014start thinking about the hows, whys and wheres (specifically <a href=\"https:\/\/www.crazyegg.com\/blog\/understand-your-audience\/\" target=\"_blank\" rel=\"noopener\">the channels you&#8217;ll be trying to reach<\/a>)\u00a0early in the process.<\/p>\n<p>Oh, and one more thing. If you&#8217;re giving away something cool, do me a favour and let me know.<\/p>\n<p><em>Had a negative (or positive\u2014I&#8217;m always willing to be proven wrong) experience running a giveaway? We&#8217;d\u00a0love to hear about it. Just drop your story in a comment below.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just about every marketer has been there. &#8220;Our numbers are looking a little low this month. We need to do something to boost sales.&#8221; *Lightbulb*\u00a0&#8220;Let&#8217;s&#8230;<\/p>\n","protected":false},"author":160,"featured_media":19027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_lmt_disableupdate":"","_lmt_disable":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3],"tags":[],"class_list":["post-18887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why That Giveaway Is A Terrible Marketing Idea<\/title>\n<meta name=\"description\" content=\"A giveaway is a great way to generate an email list, but can you be sure that the leads you`re generating are actually worth having? 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