4 Reasons Your CPG Brand Should Hold a Contest in 2022

In a world where over-saturation is one of your most significant battles, interactive content like contests can be your greatest asset. Contests aren’t just about fun and excitement. Contests can encourage new conversions, boost consumer advocacy, and increase brand awareness beyond your current audience.

Let’s look at some numbers and see just how impactful contests are for CPG brands like yours.

  • On average, 34% of new customers are acquired through contest efforts.
  • Email contests have an average open rate of 8.8%.
  • Increase conversions by 3.7%.
  • 94.6% of people share the contest after entering, improving brand awareness and advocacy.

Sounds pretty sweet if you ask up?

Here are four key reasons why your CPG brand needs to launch a contest in 2022.

4 Reasons to Run a CPG Contest in 2022

1) Build Awareness

Contests are a great way to engage with your audience and get them excited about your brand. Contests give people a reason to interact with your brand, which makes them a great way to engage with your audience to the benefit of your brand. They also create an incentive for your audience to talk about your brand with their friends and network.

When people talk about your brand, it helps increase brand visibility and reach. Additionally, word-of-mouth marketing is one of the most effective forms of marketing, so getting people talking about your brand is a great way to generate buzz that your audience can trust.

If you’re thinking about running a contest to build brand awareness for your business, there are a few things you should keep in mind.

  1. First, you need to ensure that your promotion is relevant to your brand and audience.
  2. Your contest should be something that will resonate with your target market and give them a reason to care about your brand.
  3. You need to make sure that your contest is easy to enter and has a clear prize.

2) Data Collection

Data collection through first-party collection efforts like contests gives you a chance to create a presence both on and offline, depending on your consumers’ preferred channels. While many consumers are suspicious, and rightfully so, about giving away their personal information when it comes to exchanging their info for a chance to win something amazing, they’re much more forthcoming.

But collecting their personal information like phone number, address, and email isn’t the only data you can collect from your contest participants. Add a layer of depth by asking them some personal questions pertaining to your industry, products, or brand.

This information can be stored for later use to initiate conversations or to influence your creative decisions and marketing initiatives.

3) Build Buzz Around Stagnant Products

Do you have a CPG product or service that just isn’t getting the love you know it deserves? Maybe the age of your new customer base is getting older or perhaps you’re trying to enter a new market.

Whatever the case may be, contests can help create buzz around existing products or services:

  • 94.46% of participants will share the promotion immediately after entering.
  • 62.13% of participants will share the contest with a close friend in hopes they will participate.

As the contest build steam, use email, SMS, and other outreach methods to engage with your participants and push awareness and promotion of your products. Don’t wait until the end of a contest to send a final email, be aggressive in putting your message in front of your audience.

4) Reinvigorate Your Relationships

You may have a million-name list of past, present, and future consumer data, but can still get lost in the sea of consumer options. This is why you need to cultivate strong relationships with your audience.

Relationships are one of the top ways to differentiate your brand from your competitors. Contests give you the opportunity to you breathe life into stagnant relationships and help build new ones. It takes you out of the normal purchasing cycle and gives your brand new ways to engage with their audience.

The beauty of digital promotional platforms is that you can choose a format that best speaks to your audience’s preferred communication style. Whether your consumer prefers email, is a regular site visitor, or loves staying tapped in on social, you can create a contest that speaks to them and makes them feel seen and heard.

Need Help With Your Next Contest?

Contests are tons of fun, but we would be lying if we said they weren’t a lot of work. That’s why we’ve created PromoToaster. PromoToaster makes it easy for CPG brands to create, manage and promote winning marketing contests. Learn more about how PromoToaster can help you get more out of your next contest. Schedule a demo today.

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