Heard Communications

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My 2 Minute Argument Against Contests

At the risk of betraying my principles that usually prevent me from doing such things, I'm going to start this post with a tired cliché: There's no such thing as a free lunch.

This applies to companies and their launch efforts. 100%.

I've witnessed, and even been part of, launch communications campaigns that include some sort of contest. There is always some variation, but the core elements are universal: someone has to do something for the chance to get a "free" item.

The contest is run, either in a partnership with a third party or self-administered, and after the prize is awarded, a meeting takes place where the people in the room boast about some combination of rising brand metrics, positive customer engagement, the volume of email addresses collected, or impressions and exposure gained. Mission accomplished, right?

Except, it's a hollow victory. Contests don't work.

What they do is attract the masses willing to hand-over something they've devalued, such as their attention or contact information, for the promise of an item they did value and desire but has now ostensibly become free. Or, worse yet, they get involved in the contest for the contest's sake, knowing nothing about the product or its worth.

Sometimes the argument in favour of contests is for data gathering purposes, but what is the quality of that data? Are those email addresses real or are they burner accounts? How many accounts unsubscribe from your content the day after the contest closes? Or mark them as spam?

What have you given-up for giving away your product for free?

Brand perception, market positioning, and desirability.

For those that don't win the contest, they go on with their lives without your product and see no reason to change until the next contest.

A better strategy is to look at your communications campaign and leverage amplification tools that generate genuine, sustainable consumer interest. You end-up attracting paying customers that have invested the time to learn about your organization, why your product is best for them, and the added value it can bring to their life.

Isn't that a better outcome?