How to Create High Performing Sweepstakes for Lead-Gen Efforts
OK, I know what you're thinking … viable leads typically don't come from sweepstakes and contests.
And when not done correctly, that's exactly right.
However, just as any online direct response tactic, this one is no different. Over the years, sweepstakes marketing has become refined through testing and targeting. And since the boom in social media, sweepstakes are more popular than ever.
But before you embark on this tactic, there are a few core concepts to know—as well as best practices.
It's important to get to know your list to help determine its value and how much you are willing to give away for a lead, such as:
- What is your average conversion time (how long does it take someone to move from a lead to a buyer—30, 60, 90-plus days?)
- What is the lifetime value (LTV) per buyer?
- What is your average revenue per name?
- What is your average cost per lead (CPL)?
Conversion Time. Monitor a group of new names (perhaps by campaign) who come on your file and see at what point, at what percent and for what dollar amount your leads convert to buyers. This will help you know how much and how long it takes a lead to convert. Let's say you have a pay-per-click campaign and, in the first 30 days, 20 percent of the leads convert and the average unit sale is $50. This shows you your time threshold for getting a sale. You'll know when to anticipate revenues and can manage your budget accordingly.
LTV. You take the total your buyers purchased: Let's say over five years, this group collectively spent $100,000, and divide that amount by number of buyers (let's say its 500). Your LTV is $200. This will show you the potential long-term opportunity for a buyer's worth, as well as the loss (if the customer leaves your list).
Often referred to as the "marketing maven" by industry peers, Wendy Montes de Oca, MBA has nearly 20 years of experience in marketing, media, and publishing with expertise in multichannel, direct response, and Web marketing. Wendy has generated more than $150 million in total revenues for Fortune 500 companies, top publishers, consulting clients, and her own firm, Precision Marketing and Media, LLC. She is the creator of the groundbreaking SONAR Content Distribution Model and author of the best-selling book Content Is Cash: Leveraging Great Content and the Web for Increased Traffic, Sales, Leads and Buzz [Que Publishing, Paperback].