Know-How Exchange : Strategy

I think the best door prizes are ones that will bring clients to your business. Gift certificates are great...and free services work well too. Especially if it can be "for you and a friend," that way you can get two people to come in, have a pleasant experience and have a better chance of a return visit.

For a spa, maybe a card offering 50% off the next 5 visits, instead of a completely free visit. Try to bring the customer back a few times to get them in a routine and comfortable with your business.

It's not the door prize that counts. It's the promotion you get from advertising that your company has a door prize. Some printed, some word-of-mouth advertising.

I think it's best to have some rules or legalities put on a placard to the effect: "No purchase necessary. Void where prohibited. One winner will be chosen by random drawing of entries on (date). The winner will be notified by telephone or email."

Good luck with your promotion.

Why do you say 50/50 chance? If the winner isnt a potential client-- either the certificate is not redeemed (meaning you lose nothing) or they give it to a potential client.

I'd only show at events that attract your target audience. I won two certificates at a bridal fair (recently engaged) one for 500 the other 400. As anyone who has used a medspa-- I redeemed each and it didn't cover the cost of any one treatment. I also won a Mary Kay basket and the rep did a makeover that brought her an additional $400 in sales-- and of course they'll keep buying and having home parties.

Everyone at these bridal fairs has either contests or door prizes. Its amazing-- but in speaking to the medspa, they are their main source of advertising.

Carol
Sell Well and Prosper

Door prizes can be tricky, but there are many people that come out specifically for that. The problem is that most people that come out for that reason aren't potential customers and your scraping the bottom of the barrell. I might instead market to local businesses and offer a service that costs you very little. In fact I saw a top Aveda institute offer free massages every Tuesday. Now their free massages were nothing more than a short 3-5 minute shoulder massage, but what happened was they gave just enough to wet the appetites of their customers in order to get them to come back. In your industry you may want to consider this, that way your not giving away profits by offering discouted or even free service after the promotion is finished.

My recommendation is to first think about your objective, and then choose your strategy. Why are you promoting with a door prize in the first place? A door prize can be a great strategy, but you have to choose your strategy according to the objective. Is the audience your target market? Or are you trying to expand to this market? If you are definitely going ahead with the door prize, target your prize to the audience. E.g., if it's a senior crowd, include an ad/coupon/certificate for a service related to senior concerns (like an anti-aging facial or something).

Instead of door prizes, donate your services for a silent auction. Everyone will see your advertisement, and those that are interested will bid. You could award your services to the top 3 bidders. It's a win-win: the charity benefits from the auction, you get a ad, and you get people who are interested paying attention to you.

The door prize was promised -- so choosing venue/ target market was moot. A discount seems most cost effective and most likely to bring n new clients and some revenue. Thanks