How to Create High Performing Sweepstakes for Lead-Gen Efforts
Rev Per Name. This is more for the current buyers on your file not long term, as with LTV. Take the total your buyers spend at 30, 60 and 90 days; and at each time point, divide that amount by the number of buyers. So let's say at 30 days, your newest names bring in collectively $10,000 and there are 1,000 buyers. That is a $10/rev per name. This will show you current buyer worth and your threshold for acquisition costs.
Cost Per Lead. When you're doing an acquisition effort, how much does it cost you per name? Take the cost of the media buy and divide by the number of leads that came in. This will tell you how much you typically spend to bring in a new name. Ideally, you want to keep you cost per lead much lower than your revenue per name and LTV. I like to hover between $5 and $25 CPL. CPLs will be different by channel. However, if you bring in a lead at $50 and you know, based on your list performance, that name will spend $75 in the first 6 months, you can afford to take an initial loss.
What are you going to give away? The value of the giveaway should be something that won't be viewed as too good to be true by users as well, as one you can earn back (based on the aforementioned list criteria and in a certain time period). So knowing your giveaway threshold is important.
In addition to being realistic and appealing, the offer should also be relevant and interesting to your target prospect.
I've seen random sweepstakes offers on the Web, as I'm sure you have. One in particular, a publishing company, featured an offer: "Win a free iPad."
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].