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New Research on How Consumers Value Prizing

The most successful loyalty solutions incorporate ways to keep members engaged in the program. HelloWorld's unique approach to driving loyalty includes chances to win, which are proven to spark interest and keep people coming back. But when it comes to winning contests, sweepstakes, and games within a loyalty program, what will actually move the needle? We set out to investigate with Janice Pollard, Director of PR at HelloWorld, in light of their new prizing research.

Q. HelloWorld has been engaging consumers on behalf of brands for years. Why did you set out to gather exclusive data?

A. We have always had empirical view of what works for brands, but we didn't have the data all in one place. In 2016, we wanted to ask consumers directly and see what we found out. Now in 2018, we wanted to understand what might have changed since our initial research, and there were some surprising findings.

Q. So what has changed in consumers' minds when it comes to prizing?

We asked consumers if they'd rather get a $50 prize now, or a $75 prize in 4-6 weeks. In 2016, 65% were willing to wait, but in 2018, only 46% are willing to wait for the larger prize. This indicates a movement toward instant gratification, even when the prize amount is reduced.

Q. Were there any surprises in your research?

Yes! One thing we wanted to learn was what types of prizes were most appealing, so we asked if people would rather win something that "made their life easier," or something that "made them feel special." Even at high household income brackets (over $125,000/yr), the majority of people (64%) would rather win something that made their life easier.

Q. We can safely assume that Amazon and Visa gift cards are likely a big hit when it comes to winning a gift card, but what's else is out there that has mass appeal?

While the demographics vary within the data, we are starting to see an emerging trend toward prizing in the form of a mobile wallet deposit and PayPal/Venmo credit. For example, approximately 22% of those aged 18-29 would prefer to receive a $500 prize in those channels. This shows that brands can appeal to consumers with prizes that are universally accepted among ecommerce and POS systems.

Q. What about the "BIG" prize? Is that still a thing?

Vacations and shopping sprees still come in first place when it comes to grand prizes. However, we found that brands don't need to break the bank when it comes to rewarding consumers. When consumers were hypothetically offered a chance to win a $250,000 prize versus a $10,000 prize, the interest in participation increased only slightly toward the higher prize. What that says is that "bigger isn't always better," and you don't have to amplify your prize budget to meet your goals in motivating consumers.

Want to get your hands on the full data report? HelloWorld's exclusive 2018 Prizing Report: Nine Insights on a Solid Prizing Strategy is available for download here.

About the Author:

Janice Pollard is the Director of Content and PR at HelloWorld, providing strategic direction to brands on how to amplify their stories in the marketplace. She is passionate about putting a human voice into marketing -- producing editorial, video, and creative content that enables HelloWorld to maintain a leadership position in the industry.