Why Do Brands Run Social Media Contests?

26 November 2014, Wednesday

Social media contests are a powerful tool for businesses to create brand awareness and build strong connections with their followers. But how exactly can these contests benefit your brand?

1. Building a Community

An effective contest is one of the best ways to grow a strong and engaged follower community. People may not know about your brand until a friend or family member shares it with them. Social media contests encourage this type of sharing.

Participants often feel the need to tell their friends and family about the contests they’ve joined. Instead of brands building their communities directly, they are now being accepted and embraced by the communities themselves.

2. Encouraging People to Follow You

Contests are an excellent way to attract new followers to your social media pages. The chance to win a prize acts as a compelling incentive, giving users a strong reason to follow your page.

3. Creating Awareness

Contests are a great way to create awareness for a product or brand. In successful contests, participants share the contest with their friends and family, spreading the word even further.

For example, when the women’s clothing brand Leneys first started on Facebook, very few people knew about them. Their page had fewer than 500 followers, and they lacked experience in running an online store. To increase their visibility, they launched a Facebook contest supported by ads. Participants began sharing the contest with friends, driving more traffic to the page. Many of these visitors became customers on the same day. Today, Leneys has over 21,000 followers.

4. Growing Subscriber Lists

Social media contests are one of the most effective ways to grow your email newsletter subscriber list. Many contests require participants to fill out a form, providing their contact information to enter.

5. Boosting Sales

After creating brand awareness and growing your subscriber list, the next step in your contest’s evolution is increasing sales. Contests can help turn potential customers into actual customers—especially the winners, who receive your product for free. If they are satisfied with it, they are likely to purchase more from you.

If your product piques their interest, they were probably already looking for something similar. By giving them a free version of what they wanted, you can gain an edge over your competitors.

6. Increasing Engagement

Social media contests are also effective for boosting engagement on your page. As your page attracts more followers, it will naturally see increased comments, shares, retweets, likes, and pins. This helps you draw in followers from the right segment—people genuinely interested in your brand.

These engaged followers are likely to revisit your page regularly to stay updated on your news and updates. The key is to maintain long-term interaction between your brand and your followers. You can do this by staying active on your page, responding to conversations, or communicating with them through emails.

Source: maximizesocialbusiness.com

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