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| July 29, 2011

How Reward Structure Can Enhance Your Next Sweepstakes

The success of a sweepstakes can differ significantly based on its reward structure.  This raises the question:  How does reward structure affect consumer valuation and participation? To design an effective sweepstakes, one must first understand how consumers’ valuation of sweepstakes varies based on the number of winners, the number of levels of prizes, and the difference in the awards between the levels.    Large bait attracts the bite, but not everyone can afford to offer them.  Some savvy firms have already learned the value of big money prizes backed by SCA:

“You’ve got to put a prize out there better than the next guy. Small prizes won’t generate any excitement – it has to be $50,000, $100,000 or $1 million. SCA helped us do that.”

 

“SCA gave us million dollar exposure without our having to pay a million dollars.”

 

 


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