Giving away can really create a lot of buzz around a certain product and company which can lead to increasing sales in the long term. The concept of charitable actions can be used here as it is generosity and helpfulness. So, stakeholders will feel that a company really cares about their needs and is ready to give back to the community. This will benefit the reputation of a company, as this will be shared around to reach a wider community.
Creating contests for marketing is the use of an incentive of a prize to reward people who take part. Giving out prizes for motivates people to partake in these giveaways. This helps to create an awareness of the brand, generate engagement, and gather leads that have a high chance of converting. A company can increase reputation and awareness by showcasing the best products/services that are provided. This automatically will attract a targeted audience which will increase sales and conversion rates. With increased reputation and awareness, products gain exposure. Companies can generate leads and strong email list base important for conversion rates of the traffic you receive. This is an inexpensive and cost-effective way of advertising if it is budgeted and planned out.
Having and utilising giveaway and contest ideas will not only enjoy an improved relation to shareholders but also stakeholders. Increased engagement from stakeholders engages companies with a fresh perspective, which provides opportunity to learn and mould products and services to ensure it fits the needs of stakeholders. This will lead to better decision making as the needs of the stakeholders are known as relation to stakeholders is improved. Another benefit would the trust and credibility which are built between the company and stakeholders. It will help to increase conversion rates and sales if there is effective stakeholder engagement. A closer relation to stakeholders may improve risk management by highlighting issues a company may have not been aware of and help to prioritise. A company transparent of their outcomes and steps they want to take next is important in an improved relation to stakeholders. This is key to improve accountability within the company’s organisation and to the wider market. The benefit of an improved relation to stakeholders can lead to savings of both time and money, which again gives an understanding of stakeholders’ needs and to improve current products or create new products to suit those needs.
People cannot resist a freebie; this will have a bigger impact than any advertisements. So, having a good-quality and useful product is essential to provide consumers with a lasting impression. Giveaways provide all the details and contact information about a company. They also allow companies to create a unique and creative experience for consumers. They open the door to a whole load of brand visibility, brand advocacy and a healthy dose of excitement. These contests and giveaways allow building email lists, especially when there is a prize involved as potential customers are more likely to enter the contest or giveaway. This will probably to increase open rates of the emails that are being sent by a company as people who signed up have a lot of interest in the products or services. Contests and giveaways can encourage social sharing which increase awareness of a company and can increase sales as people more likely to buying something if their family or friends recommended them.
However, with every strategy to increase sales and awareness, there are some downfalls. They are not major, and benefits outweigh the negatives. The first downfall is making sure that everything is planned and budgeted right, otherwise a company may not benefit from giving away. This may include choosing the right product or service to giveaway. There is a short-term cost of prizes, but in the long term the sales will increase, and the cost will be covered.
The use of charitable behaviour provides benefits and typically at small short-term costs for long-term prosperity. These include creating brand awareness and customer engagement. The more stakeholders engage with the contests or giveaways, the more brand visibility there is. This will also help to build a community which will go towards in reaching long-term prosperity. So, giving away can lead to receiving more, even though there are short-term costs.