A promotional discount offered to clients via raffles is one of the most effective ways to enhance your client base, as it offers your potential customers to “win”, which is an important aspect when taken into consideration the psychology of human beings and their innate desire to excel well and beyond others.
Benefits from Setting a Raffle with a Promo DiscountIntroducing a raffle with a promotional discount can help you “lure in” customers, so to speak, as you offer a relatively reduced price on an otherwise expensive yet popular product or item. This is not to be considered negatively, however, as the intent here is not to dupe your customers, but to lure them away from your competitors and turn them into one of your own loyal customers. The key here is to remember that you should focus on forming a connection with your customers by providing them with the belief that they can and will win.
This is especially useful when launching a new product that individuals of your target market are unfamiliar with and therefore reluctant to engage in. However, as you give away free services or products, this will inevitably result in fewer sales. As customers become accustomed to and enticed by your product, your target market will grow, and therefore your initial investment will be covered pretty quickly.
Why Customers Like DiscountsAs mentioned earlier, it’s important to understand the human psychology of your customers. If you can’t connect with them on a personal level (through your advertising or products), chances are you’re not going to making as many customers as you could. Giving your potential customers the benefit of discounts makes them feel that they are spending their money wisely because essentially they are “saving money” and getting the added benefit of trying something new. The higher the discount, the higher the chances of them buying and using your product, and eventually coming back for more.
Even though you may be hesitant to provide discounts on your products, especially if they are expensive, it’s important to remember the foundation of business: a little investment now will result in an increased number of sales and overall revenue later. Providing customers with discounts helps to encourage repeated purchase as you gain your customers’ loyalty and interest.
One of the benefits of promoting discounts via raffles is that you have already set a limited and feasible number of items that you can give away, which basically means that instead of having to give away discounts to thousands of customers, you have the choice to limit it to a certain number of participants.
However, it’s still important to keep in mind that the discounts are to be set for a limited time period and validity of discounts and coupons will expire. This will also help you gain an understanding of what type of results to expect by using the initial discounted sales as feedback.