Yes, but the result is generally based on the amount of effort and resource they invest. Let's quote an example. Consider a case where you are selling Omega 3 and 6 supplements. You can organize a contest based on your product's functions which would help you generate higher sales volume and also the respond rate from your customer. Since Omega 3 and 6 are important to the development of brain, you may consider holding an IQ contest.
This tells you about how the brain function is enhanced with the help of these products. The range of cost varies from zero to a few hundreds or thousands of dollars. You can cut the cost drastically by holding an IQ contest online. Emails can also be sent to existing customers after developing a set of IQ questions.
Later, these contestants will have the choice to participate through the website or they simply just reply our email. Your products, vouchers or any other gifts should be rewarded to the winners. This would in turn encourage the customers to spend the given vouchers.
You can choose to stop wwith the above. However, why don't we go one step further?
On top of the above, for every new contestant or potential new customer that the existing customers bring in, they will be rewarded with 5 or 10 dollar cash voucher. This helps in promoting your company, brand, product and contest to others by encouraging the existing customers. Meanwhile, you may control the usage of cash voucher, such as how many vouchers can be used in a single transaction or what is the expiry date. But, we should avoid imposing too much restriction on them. For example: only 1 voucher can be used in a month and the voucher will be expired in 30 days. This in turn will discourage the customers in searching for new contestants.
Is it right to think that the cash voucher offered is a cost to the company? Yes, we agree on that to a certain extent. However, if we look it at a different perspective then we will think it differently. What would happen if the customer who has the voucher would buy your product or else they would not do so? In this case does this voucher result in profit or high cost to your company?
If the vouchers are offered wisely this would aid you in making profit and not losses to your company. Thus this marketing strategy helps in promoting your products with less expenditure. The new high quality of prospects list (new contestants) obtained can be followed up later.
One of the examples is quoted above Develop your plan first and then start moving on.
