Why is running contests for consumers a better strategy for customer engagement than giving discounts?

Running contests for consumers can offer several advantages over simply giving discounts as a customer engagement activity.

1. Unique and Memorable Experience

Contests provide a unique and memorable experience for customers. Participating in a contest creates a sense of excitement, entertainment, and challenge, making it more engaging and memorable than a simple discount offers.

2. Emotional Connection

Contests have the potential to evoke positive emotions such as anticipation, thrill, and achievement. By creating an emotional connection, brands can forge a stronger bond with their customers, leading to increased brand loyalty and advocacy.

3. Increased Participation and Engagement

Contests encourage active participation from customers. They invite customers to interact with the brand through various actions, such as submitting entries, voting, or sharing content. This active engagement leads to a more immersive brand experience and a higher level of involvement from customers.

4. User-Generated Content and Word-of-Mouth

Contests often generate user-generated content, such as photos, videos, or testimonials, which can be leveraged by the brand for marketing purposes. This content can amplify brand messaging and serve as social proof, creating positive word-of-mouth and attracting new customers.

5. Longer-Term Impact

While discounts may provide immediate gratification and drive short-term sales, contests have the potential to create a longer-term impact. They can generate sustained engagement over a period of time, allowing brands to maintain a connection with customers and extend their brand messaging beyond a one-time transaction.

6. Targeted Activation

Contests can be tailored to specific customer segments or target audiences, allowing brands to focus their engagement efforts towards a specific group. This targeted activation can help brands reach their desired customer base and deepen relationships with key segments.

7. Data Collection and Insights

Contests often involve collecting customer information, such as email addresses or preferences, which can be valuable for future marketing initiatives. Brands can gain insights into customer preferences, behaviour, and demographics, enabling them to refine their strategies and personalize future communications.

While discounts can still be effective in driving immediate sales, running contests provides a more interactive and engaging approach to customer engagement. They offer a multi-faceted experience that goes beyond simple price reductions and allows brands to connect with customers on a deeper level, fostering loyalty and advocacy in the long run.