Why Do Competitions Work For Businesses?

Psychology is a funny thing. As humans, we go out, buy a lotto ticket for actual $$$ with a 1 in 100,000,000 chance of winning. 

Why? 

When it comes to competitions people are buying ‘possibility’. Not the actual win. 

It’s not logical it is emotional. 

The Prize Bar team have put together a few reasons for you on what actually works and why.

Creating a Competition is a go-to strategy to attract customers to a business or brand. It has a powerful marketing tool that requires participants to complete some sort of questions, challenge or skill.

Here are some of the benefits of a competition and how you should consider running a contest for your business.

Competition Builds Brand AwarenessA primary purpose of a competition is to attract interest to your company or brand and create a buzz in the marketplace. A business may raffle off major prize to give customers a feel-good moment and to contribute to word-of-mouth advertising as people tell others about the opportunity.

Competition Increases Subscribers –  Competition is a great tool to increase the sheer number of people who interact with your brand. It has been used to generate web-business fans in the form of Facebook and Twitter followers, LinkedIn connections and email subscribers.

Competition Increases Engagement – When a competition’s participant sign up, they fill out forms with their information and answers. Companies collect this for lead nurturing and to better promote their businesses or something else in the future. In addition to collecting data as part of the entry process, you can also learn a great deal from the interaction and conversation that takes place around your competition.

Competitions are Cost-Effective – Competitions are often relatively low cost, depending on the setup and prize but you can always get people to help.

Competition Increases Sales – Competition is a great way to convert your business leads into valuable customers

The benefits of competition are many when done properly and effectively. It is a quick and winning way to give your business a boost in terms of awareness and really connecting with your audience.

If you love the idea of creating a competition but don’t want to do the work, Prize Bar is a New Zealand company that helps you get all the benefits without doing all that donkey work.