So, this isn't THE final word on sweepstakes vs contests - but you get what I mean. We've really only covered the basics, and you're welcome. We could write novels on this stuff, but we'll spare you. If you take anything away from our series, these next few points are it:
1) Sweepstakes are a random draw, and cannot require a purchase. Contests are "skills based" - meaning the entries will be judged, and the best one wins . There are legal reasons for this distinction, namely to prohibit illegal lotteries, (This is one of those junctures where a novel could start..)
2) Sweepstakes are great for building a customer base, email list, etc.
3) Contests engage your existing customer base. So, a good 1, 2 punch: Sweepstakes to build the list, and then a contest to further engage.
4) Regardless of the promotion you choose - you need rules. Because of the ever changing landscape of rules, regulations, and terms of service for various social networks (which is where many of these promotions are administered these days) - you should have them legally reviewed. This protects your brand and most importantly, the consumer.
5) Promotions can be as simple as a free product giveaway or as complex as a multi-level contest with judging and sweepstakes overlays, and trips around the world as prizes. Bottom line, if you have no idea where to start, consult an expert. We certainly would prefer you call us -- but I would definitely advise you to speak with someone who's done this before.
So, there you have it. A top line, birds eye view of sweepstakes and contests. If you ever want to dive into the details, give me a call!
All too often, the words "Contest" and "Sweepstakes" are used interchangeably with promotions. These 2 different types of promotions couldn't be any more different. We're going to do a series of blogs notating the distinct differences in each of these types of promotions, when to employ either tactic, and the legal watch outs for running such a promotion.
First, let's start with the basics, demonstrated in the image below. We'll go into detail on each of these items later in the series, but the most important thing to remember with sweepstakes and contests is that the key difference lies in how winners are chosen.
With a sweepstakes - entrants submit their contact information in exchange for a chance to win. It's as simple as that.
With a contest - the entrant submits something they've created (photo, recipe, song, etc), and the winner is chosen based on their skill. "The best _______ wins."
At the end of the day -- there's the difference. However, sometimes a sweepstakes could be "disguised" as a contest -- for instance -- you could have a photo submission promotion that would encourage entrants to submit photos - but the winner is chosen by random draw in the end. And, since we now know that when a winner is chosen by chance, it's a sweepstakes!
In this edition of Sweeps vs Contest, let's cover the appropriate times to run either promotion.
Let's start with the Sweepstakes. Again, a sweepstakes is a simple random draw. Entrants provide their contact information in exchange for a chance to win. As you can imagine, this is a really great time to add an opt-in box to that entry form. Because sweepstakes are typically very easy to enter, you can expect volume participation, and this is a GREAT tactic to use when you're looking to simply build your fan base, email list, Facebook following -- you name it. Providing an easy way to interact with potential new customers is a quick way to build that base.
On the flip side, Contests require a bit more effort. Here, you want to leverage your existing fan base (so, it would make sense to run a few sweeps first to build that up). You are encouraging your audience to interact with your brand -- posting pictures, recipes, videos, design boards, you name it. While you're engaging your audience, you're also collecting user generated content, or new product ideas, or other valuable insights. Here, since you are asking more from the entrant, you can (typically) expect less volume than a sweeps - but the quality of interaction is higher. You're spending more time with your audience than a simple entry form. The results can be pretty spectacular.
So, which to choose - a sweeps or a contest? That's really up to you! If you need help making that decision, give us a call!
This week, we were honored to present at Social Media Week with one of our agency partners - what a great session! We can't wait to do it again!
Covering a little discussed topic - Social Promotions - and the legal do's and don'ts as well as some great examples of successful social promotions. There were so many great ideas and questions - it was truly amazing to be in a room with 70+ marketers.
Here's what the audience thought while they live tweeted the session using
Great session today at the @IlliniCenter! Excited to put our new & innovative ideas to use! #SMWSweeps #SMWChicago pic.twitter.com/uZ7Qikwpji — Blue Magnet (@Blue_Magnet) September 23, 2014
Great session today at the @IlliniCenter! Excited to put our new & innovative ideas to use! #SMWSweeps #SMWChicago pic.twitter.com/uZ7Qikwpji
Very informative talk on sweepstakes and contests. Important info we needed to know for definite. #smwsweeps — Rachael Walker (@loverachaelw) September 23, 2014
Very informative talk on sweepstakes and contests. Important info we needed to know for definite. #smwsweeps
To create a memorable #promotion, AMUSE! Award, Messaging, Unselfish, Simple, Entertaining. #smwsweeps — Stephanie (@S_Hilger) September 23, 2014
To create a memorable #promotion, AMUSE! Award, Messaging, Unselfish, Simple, Entertaining. #smwsweeps
#smwsweeps can't wait to apply this thinking to my B2B brands and customers — Sherry Gorsich (@luvuniquethings) September 23, 2014
#smwsweeps can't wait to apply this thinking to my B2B brands and customers
Bring in a third party vendor for rules, by law must include rules for social promotions. #SMWSweeps — Lauren (@LaurenMeem) September 23, 2014
Bring in a third party vendor for rules, by law must include rules for social promotions. #SMWSweeps
Product review sweepstakes are common place and just this year, the NAD released new guidelines regarding disclosure requirements.
Anywhere that product reviews are incentivized by a prize should somewhere show a brief disclosure about the connection between the review and the incentive.
“Advertisers incentivizing reviews with sweepstakes or contest entries should ensure that such reviews contain a disclosure regarding the material connection between the entrant and the advertiser.” Read more here.
Below are a few examples of how a manufacturer or retailer displays a disclosure for product reviews that are associated to a sweepstakes.
1. Raymour & Flanigan
2. JCPenney
3. Nordstrom
Hashtags are all the rage, and it's no surprise they are seeping into the realm of social promotions. While we can all agree that saying the words "hashtag" and some other term should really be outlawed, when put into practice, these little guys have become quite the resource, allowing people to view all related posts to trending topics, current events, or even all of those pictures that should have stayed buried.
The next logical step, of course, is for brands to utilize this tool when engaging their audience in campaigns and promotions.
Here's the catch - the FTC ruled that all hashtag promotions require a disclosure. More specifically, that "entry into a contest to receive a significant prize in exchange for endorsing a product through social media constitutes a material connection that would not reasonably be expected by viewers of the endorsement," wrote Mary Engle, the FTC's associate director for advertising practices. You can read more about this ruling here.
So, you've seen the recent promotions with hashtags and disclosures. In fact, just look up #contest on any social media site, and you can find many examples. One promotion we worked on was the #WAHLGroomedContest.
There you have it. Still have questions? Don't hesitate to give us a call!
We recently gave a seminar presentation and exhibited at the Mid-America Trucking Show. Turnover rates in the trucking industry are astronomically high, so we did our part to spread the word about the importance of employee engagement to help improve retention. While we focused on the trucking industry during our seminar, Reinvent Recruiting & Retention, the presentation content applies to any company in any industry. So, let’s digest the content, shall we? Here it goes:
According to a recent Gallup Poll, did you know that 2/3 of US workers feel disengaged at work? That’s a pretty large number of people… One would think most of those people don’t want to feel that way considering being at work takes up most of their time.
With that said, implementing a recognition program is the key to optimizing employee engagement. Referring to this Globoforce Article, when companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement.
That’s a pretty impactful statement right there. Here is a summary of a case study from the call center industry that proves this…
- Situation: A 1500-seat call center with over 200% turnover. Job is boring and stressful. Management invested in higher pay, better workstations, and better benefits… no improvement.
- Tactics: Focused on why employees stayed and they determined it was co-worker bonds. By reinforcing positive employee behavior, they launched an online employee recognition program. The program rewarded for random acts of kindness, among others, to help reinforce and strengthen the importance of employee bonds.
- Results: 200% turnover was down by 133%, and falling. And most importantly, 82% of employees believed the company committed to recognizing employee accomplishments.
So, as you can see, employee engagement is pretty important for business. But many decision makers may be asking themselves, “Where do I start?” or “How can I make this happen?” No worries, we’re here to help. Here’s what we call our “Action Plan” to get things going…
STEP 1 = LISTEN
Plain and simple… regular employee feedback amounts to lower turnover. Your workforce feels valued and appreciated when they are involved in company processes. Mentioned in this employee engagement info graphic, there are 14.9% lower turnover rates in companies that implement regular employee feedback. Here are some ideas…
- Implement an “open-door policy”. No one likes to just be “talked to”… it’s a 2-way street! Let your employees have a voice to speak to all company staff levels.
- Check-in at least once per month. Don’t wait until that annual performance review. And encourage feedback… everyone will benefit from it.
- Ask for new ideas. Conducting a survey is probably the best way to accomplish this as well as get feedback and a better understanding on particular topics within your organization.
STEP 2 = INVEST
You’ve listened, and now you’re ready to invest in your employees. And from a recruiting standpoint, there are 2 “recruiting musts” that all recruiters need to keep in mind…
#1: Hire based on fit. This blog by O.C. Tanner explains it really well. Hire people who really fit within your company culture. Employees who believe in their company’s core values and align with the culture will positively translate into their work.
#2: Use Social Media. According to this recent social recruiting survey, social media is an essential recruitment tool across all industries. The top 3, in order of popularity, are LinkedIn, Facebook, and Twitter. Did you know that the millennial generation is now the largest population in the workforce? This generation pretty much lives and breathes social media, so it’s a no-brainer for companies to be present in this space.
Once you’ve recruited the right people, now it’s time to truly invest and train them. No question, training is very important. Training = Better Performance, as referenced earlier, this info graphic further helps depict this. Companies that invest more in training and career development outperform their peers. How do you improve upon training? Here are some ways…
- Encourage participation in special mentoring programs to help your employees grow.
- Implement continuous learning… an eLearning module on an integrated online program is a perfect example.
- Make sure the mission of your company culture is evident in your training content.
Let’s really drive home the importance of company culture, shall we? Do you ever shop at Zappos.com? This company is a prime example of positive company culture, and their employees know it… and so do their customers since their happy attitudes show up in their customer service skills. Take some time to read more about Zappos culture… it will make you want to work there. Oh, and their CEO Tony Hsieh published a book called Delivering Happiness, A Path to Profits, Passion, and Purpose… it’s now a movement… learn more here. It just goes to show that if a company is dedicated to their company culture and core values, their bottom line profits will be positively impacted.
STEP 3 = RECOGNIZE
And the final step at that… This Forbes article explains how recognition really works by referencing Maslow’s Hierarchy of Needs. Recognition supports our higher-level psychological needs in order to make us feel important and respected. Compensation and benefits is a base-line and we need more than that. Elements of recognition make us feel appreciated and happy. All companies need to embrace this concept to truly improve employee engagement.
Further, recognition = motivation… And, again, referencing this amazing source, 78% of employees said being recognized motivates them in their job. Here are some tips:
- Praise employees often… Frequency is key… at least once per week.
- All levels of the workforce should participate… not just at the manager level, but peer-to-peer as well. Encourage recognition to all.
- Recognize for all different kinds of performance, not just one thing. Years of service, new ideas, birthdays, event attendance, learning completions, wellness activities, etc… the list goes on and on! And better yet, incorporate all recognition types into one program.
An integrated recognition program needs meaningful rewards for your workforce. So, what rewards are true motivators or incentives? It ranges from pure transaction, such as cash or gift cards to emotional experiences, like travel or trips. Non-cash rewards have more of an emotional impact; However, if you reward with cash rewards the options are endless for what that reward can be used for or applied to. Reloadable prepaid cards that are customized with the company logo are a great way to represent the company and allow your employees to use it wherever they want.
So, let’s compare the importance of recognition to our personal lives… You wouldn’t tell your significant other “I love you” once a year, would you? This Lifehacker blog talks about the secret of happy couples… and in one referenced study, people who responded to their significant other’s triumphs at least 3 times per day for 1 week increased their happiness. We’re all human… It makes sense that we’re happiest when we’re frequently recognized in our personal lives… the same applies to our life at work.