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| June 5, 2013

How to Integrate Prize Promotions into Your Business Strategy

Over the past 27 years, SCA Promotions has seen businesses of different sizes and industries take advantage of big-prize promotions. Every year, more and more companies begin to explore creative ways to build brand awareness, motivate consumers to act, and reward customer loyalty.

If you’re looking to grow your marketing efforts, starting from the ground up can be difficult. The following two-part guide will expand your knowledge of how to plan a successful promotional campaign.

What is Your End Goal?

Just like any new strategy, before you jump in head first, you need to establish the goals you want your promotion to achieve. Unsuccessful campaigns have vague or poorly defined goals. Think about these areas to establish an objective:


  • How can I measure the response to a product trial?
  • How do I drive more traffic to my physical and/or online store?
  • Does a particular product need more visibility in my store?
  • How do I increase the usage or purchase frequency of my product or services?
  • How can I tap into referral marketing?
  • How can I influence my customers to increase their transaction size?

Brand Recognition

  • Can I create more buzz around my brand or product?
  • How can I increase viral and word of mouth marketing?
  • How can I grow my current customer base?


  • I need to build a database to track customer preferences.
  • I would like more knowledge on my current customer base.

What Does Success Mean?

For each objective that you set, you need to determine how you will measure success. As someone once said, “If you can’t measure it, you can’t manage it.” Be sure to set measureable goals; without them, you won’t be able to evaluate your initiative. The more specific your goals, the more defined your results will be. Useless data makes a promotion fall short – even if it was successful on the outset. Here are ways you can measure results:

  • Response rate
  • Number of participants and new customer acquisition
  • Click through rates
  • Cost of prize and prize distribution costs
  • Media pickup
  • Effectiveness of banner ads and in-store POP
  • Conversion to purchase rates
  • Number of referrals
  • Desired behaviour conversions
  • Opt-in conversion rates

Cost to Your Organization

With goals and success metrics in place, your next step is to determine what the cost of the promotion will be to your organization. When it comes to the prize promotion, your accounting and risk department will thank you for using SCA’s promotional risk coverage. Your company pays SCA a fraction of the grand prize’s cost to assume all the financial risk. This effectively sets a fixed cost to your promotion, ensuring that no matter how the promotion unfolds, there will be no surprise expenses, even if someone does walk away with the grand prize. SCA will cut you check so you can award your winner.

Previous marketing efforts may provide you with a foundation to decide what the micro and macro costs are.

Each time you pursue a new promotion, you should re-visit these areas and refine them. Develop a best practices model so you can quickly evaluate the success of a promotion versus another. This will also allow you to pinpoint problem areas and make changes.

In the final part of this series, to be posted soon, we will cover how to choose promotional concepts, prize coverage and promotional rule requirements, as well as how to choose the right prize for your audience and more. Have questions for the SCA Promotions team? Leave us a comment! It would be great to hear your feedback.


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