Social Media Competitions Suck At Building New Customers

Mark Masters
Managing Director of Bournemouth based creative marketing company, The ID Group. Helping to position businesses as the authority in their industry and providing advice, opinion and guidance for brands to be the 'go to' choice.
Mark Masters

@heyidgroup

Owner of creative marketing ID Group. Positioning businesses as the 'go to' company in their sector. Here's tips and opinion just for you http://bit.ly/TEjK7o
If Dorset business owners could talk to their younger selves, here's the advice they'd give http://t.co/ZE3enXtzJH #dorsethour - 2 days ago
Mark Masters
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Do social media competitions open new doors for you?

Social media competitions can be cost effective and easy to run, but not necessarily a tool for winning more customers.

Ask yourself, is it about building a community when in reality it is not about building a dialogue, just someone wanting a prize.

 

So, Why Bother With A Social Media Competition?

We thought earlier this year, at The ID Group that if we ran competitions then we’d grow a fan-base. Here is why we wanted to create a social media competition:

  • use social media channels in a way that was different to broadcast a message
  •  use alternative means to create a dialogue with people
  • give prizes away that were not geographically sensitive ie. cinema tickets
  •  create an element of fun and build up
  •  build recognition to The ID Group brand
What Lessons Are There To Be Learnt?

This is what we realised and looking back some lessons learnt.

  • Rather than a loyal community, what takes it’s place are followers/fans who like free stuff and not much else
  • By giving away prizes, whilst being aware of the geographical nature, the demographic wasn’t necessarily a wishlist of potential prospects (so doesn’t compliment the target markets)
  • The majority of people are “˜engaging’ with you because of a prize, not to build a dialogue
  • You may receive new followers (and looks great when others see you brimming with popularity), but the likelihood of becoming customers is pretty slim
  •  It becomes an almost faceless exercise. It’s great when receiving information from new people, but do we know who these people are (and to build a dialogue with)

 

So If This Isn’t The Best Way To Build A Loyal Community, What Is?

Over the following blog articles, we’ll highlight some examples where looking to build a community has worked in 2012. The secret, looking to provide information and value to people that they can use, share and interact with. There are no shortcuts to building a following and a competition is by no means a quick win.

Before you go and buy that new iPad mini for your next competition, have a think. If it’s to use as a tool to build a committed following to your brand, think again! 

Comments


  1. Twitter:
    Hi Mark,

    very nice article and topic on which we can think twice.i like your point that giving free prizes engages more people not build a dialogue.

    Thank You
    Shorya Bist
    From Youthofest
    Shorya Bist recently posted..Is there life after Death?Do you believe in life after death?My Profile

  2. It is very important to have a successful social media campaign. Now SEO has become way much more of Social rather than just link building.

    Thanks for the post
    Zubair Ahmed recently posted..Untethered Jailbreak for iPhone 5 on iOS 6.0.2 already achieved by hackersMy Profile

  3. I like your article and topic. thank you for posting.
    Andrew recently posted..Tally peacocking like a twatMy Profile


  4. Twitter:
    Hi exactly my thoughts. They will come up to closing date. If you want to build up a following you must go where your target audiance is and engage with them. Takes time and hard work unless you are a brand which is what a lot of people dont want to hear!!!
    kevin recently posted..5 Muscle Building FoodsMy Profile

    • Exactly right! Incentives rarely work for long term growth. I have always said I would rather have a hundred followers who are interested in what I have to offer than a thousand who aren’t.

      The key to building a successful business is defining your target audience and engaging those people. Otherwise, we can waste a lot of time talking to people who aren’t listening.
      vickilee recently posted..What do you do with a customer that’s never happy?My Profile


  5. Twitter:
    Hi Mark,

    Competitions can attract a low energy crowd. Inducing people with free giveaways can be a good thing in some respects but many people are simply after a freebie and can care less about buying stuff.

    Customers buy. Tire kickers do not buy. Customers purchase. Freebie seekers never dig into their pockets, and many of these types run wildly after every contest to get neat, free stuff.

    I even changed my squeeze page giveaway from “free” to “simple”, to weed out tire kickers or cheapie seekers who would simply be poor matches for my cash gifting team.

    Overall, a really neat idea but you always want to visualize your ideal team member or customer before starting a contest. It also makes sense to be brutally honest about your results.

    Super helpful stuff here Mark, thanks for sharing!

    Ryan
    Ryan Biddulph recently posted..Work at Home Training – How a Fired Bum Security Guard Writes 10 to 25 Articles Daily for Months on EndMy Profile


    • Twitter:
      Thanks for the comment Ryan, agree with your response

      Using the word ‘free’ whilst creating the aura of added value can also, as you say, attract a ‘low energy crowd

      To build a loyal community I’d say that social media competitions are the lowest common denominator. We all need to be creative, build trust and move on from the old way of selling to helping (there’s another blog article in there somewhere!)

      Thanks

      Mark


    • Twitter:
      Hi Ryan,

      I guess you have a point here. Constant hosting of giveaways and contests can lead to repetitive behavior by the followers and this can lead to expectations of freebies every time.

      Adding to what you have said, I feel that newcomers and people starting out afresh can look at this option to build their initial fan base. Although, they must tread with caution and not let this become a habit for the followers. In controlled conditions, the contests method should work. It would atleast give you access to the follower and their shared connections and that’s quite a huge network to start off with.

      One can even include prompts which actually coerce the participants to actually write something about in their social circles. That way, the contest owner can tap into a large reservoir of potential customers.

      Regards

      Jay
      Jay recently posted..How To Memorize Your MemoriesMy Profile

  6. Good idea. Social media campaign are very important for every website/blog.
    Anurag Sharma recently posted..WordPress Vs Blogger – Which is the Best WordPress or Blogger?My Profile


  7. Twitter:
    I have been testing competitions for my clients as well, and it gets attention, that’s for sure, but as you said, it doesn’t necessary grow a following and build a community. What I have been thinking is that if, in order to join the competition, you need to do a fairly advanced step (not just add your email), then the results might be different.
    Jens P. Berget recently posted..How to measure success in 2013My Profile


  8. Twitter:
    as a blogger, the traffic from a giveaway is great for the traffic spike for that day(s) but once the giveaway is over, maintaining that kinda traffic on a daily basis takes good old hard work. Thanks for the post Mark, you inspired me to write one myself ;)
    vanita recently posted..Why I’m Saying NO to Mom Blog Group GiveawaysMy Profile


    • Twitter:
      Hi Vanita,

      If the article has made you write one yourself, that makes everything worthwhile.

      One thing that is important is that whilst I say competitions ‘suck’ , there is a huge onus on not ignoring the value of those who interact with your business everyday ie. your customers.

      Thanks

      Mark

  9. This point weighs in above all for me :)
    ” It becomes an almost faceless exercise. It’s great when receiving information from new people, but do we know who these people are (and to build a dialogue with)”

    Well written Mark, I think social media is most useful when engaging and keeping existing customers and clientele.
    Lori x
    LoriMkhize recently posted..8 Signs That You Are Turning into a Woman, Seriously!!My Profile


  10. Twitter:
    I agree with the premise about the “free” junkies.
    BUT we have been very successful in building solid relationships with new and existing customers by offering valuable “prizes” through “drawings’.
    the criteria for entry typically signing up for newsletter or ordering product.
    We just completed two such campaigns.
    One offered two prizes. Grand prize $2,000 gift certificate form one of our Corporate partners.
    The results brought an increase of 1,050 Active Newsletter subscribers (based on click through)
    The other campaign offered a “Clinic” with a nationally known person and generated over $60,000 in new retail sales over a 90 day period.
    Only requirement for entry there was the order.
    It was publicized only through the fan page.
    Of course my clients market in “narrow niches” and the participants are avid fans of the Niche.
    Chuck Bartok recently posted..Jessica Mather Marketing, Specializing in the Equine IndustryMy Profile


  11. Twitter:
    Hi Mark
    I completely agree with what you said. Just a few days back , i found that one of the Techblog I write for had only 200 facebook likes and twitter followers and now they have organised a Nexus 7 giveaway and now they have a huge fan following- more than 2.5k facebook likes and Twitter followers. This has indeed increased their fan numbers but I have the same doubt- How useful they are going to be for the blog owners?
    Thank you for sharing the article.
    Sanjib
    Sanjib Saha recently posted..Top 5 Upcoming HTC Smartphones of 2013My Profile


  12. Twitter:
    Hi Mark, Like Ryan mentioned, the same can be said with other areas of interaction like list building and blog traffic. But here’s the thing I’ve seen over the years…

    Most of those that pushed forward with their free e-books, giveaways and popups are enjoying high traffic blogs and, in many cases, decent income. In the mean time, those that were writing against these same tactics are either long gone, doing it themselves now or still writing their protests with few people reading them.

    We see the same thing with social media followings; let’s take Twitter, for example. I know people that year after year complained that those building massive followings can’t possibly interact with them and those numbers mean nothing. Years later those with the huge followings are bigger than ever on various networks and often earning a full time living online. Those insisting a small network with like-minded people are the way to go? Still small and still broke but probably enjoying their daily interaction more.

    I’m not an expert by any means and I’m not saying you are wrong but it almost seems like a continuous circle/discussion. I’m looking forward to your future posts on using better methods of building a following a community.
    Brian Hawkins recently posted..How To Find Views For A Google Plus Hangouts On Air (HOA)My Profile


  13. Twitter:
    Hi Mark,

    Welcome to the ComLuv network. Pleased to see you here.

    The topic of discussion is all about choice, in my opinion. The free giveaways and contests can be good for people who have started out and need a fan following or a subscriber base. The point here should be that such contests should be used sparingly.

    As many of the other people before me have said, the Internet is all about social networking now. With such a huge population of Facebook and Twitter, one cannot afford to miss out such a huge mass market. You may not get immediate customers in the form of the contest participants but you will get access to their networks which might consist of your customers.

    So, go ahead and organize contests and giveaways but do so in limitation.

    Happy New Year Mark. :)

    Regards,

    Jay
    Jay recently posted..Turn Off The LightsMy Profile


  14. Twitter:
    Writing the article was intended to demonstrate that begging will never build a business, by the grandeur of winning prizes.

    To take this further and a quick aspect to think about is when you look at your Twitter community, do you see ‘followers’ or do you see an ‘audience’?

    This is what building a community comes down to, it’s about nurturing an audience that knows, likes and trusts you. You will never do this by promoting a competition with your fingers crossed.

    Similar to what Kevin mentioned the key is engaging with audiences and setting your sights on a specific audience and then identify how best to serve them.

    Brian – I’ll look to feature other posts on how to build a community, it’s what the whole aim of our business is all about, in terms of positioning people as the ‘go to’ resource in their industry. Will keep ‘em coming!


  15. Twitter:
    Good post, Mark.
    There could well be a spin-off to this though. Wouldn’t you think that while the intiial audience are tyre-kickers that are just out for free stuff, the by-product of a competition is the typical viral share to people your brand wouldn’t normally ‘touch’.

    Don’t you think a certain percentage of those ‘might’ be interested in your brand and you have an opportunity to engage that you might not have gotten previously?
    Martin recently posted..Grab Some Free Advertising!My Profile


    • Twitter:
      Hi Martin,

      Thanks for your response, and do agree with your point. It’s those who ‘might’ be interested become the ones to focus on.

      The size of your audience doesn’t matter. What is important is that your audience is listening and this is the secret to building a loyal community and business success.

      Thanks

      Mark


  16. Twitter:
    Provocative, might be right – How do I make sure I don’t miss your ‘reveal all’follow-up articles?

    Wot, no capitals?

    idg design ltd
    lorne park house
    1 lorne park road
    bournemouth
    dorset
    bh1 1jj

    :-)
    David Bennett recently posted..Protected: I Want My Own Website Running WordPress. How Do I Do It?My Profile

  17. Great article, social media is the main drive of attracting new visitors and future customers. Every webmaster who plans to get their website in higher position should consider media appearance.

  18. Excellent post and well said dialogue doesn’t engage people more successfully that it done by freebies.
    Kevin recently posted..Fundamentals of Competitive SEO AnalysisMy Profile

  19. Hi Mark,

    Good post! enjoyed reading. Thank you
    Jamie recently posted..Important Ethics in Internet MarketingMy Profile


  20. Twitter:
    I think you’re right, you’ve explained the correct story of Social Media sites.
    Pankaj recently posted..Mobile Recharge SoftwareMy Profile


  21. Twitter:
    Isn’t it partly to do with the nature of the prize and the method used for the competition. For example, if I have a mass market product launch (say a new type of potato chip with lots of exiting flavours) and I offer a case of chips and ask people to check my facebook page and then say what flavour they prefer, I’m raising awareness of the flavours and the product to the correct target market (everyone who likes chips).

    If I’m a lawyer dealing in commercial law and I offer a free iPad in return for a like of my facebook page, then I’m addressing the wrong audience (those who want a free iPad) and doing little to raise awareness of the services I offer in my target market
    Fiona Maclean recently posted..5-2 Diet Tips Part OneMy Profile

  22. Thanks for sharing your post Mark, I agree with you that the secret of successful blogging is to provide information and value to people that they can use, share and interact with.

    This is such a good information to everyone.

    Excellent post!
    Jules recently posted..How To Make An Inbound Marketing PlanMy Profile

  23. A good read Mark, very important information for business owners. Also nice to read that there are people measuring their marketing efforts. Too many people wast money and time because of a lack of it. Its something we teach people in our business club all the time.
    mark recently posted..Ronde tafel Business Club bijeenkomsten Arnhem/NijmegenMy Profile


  24. Twitter:
    Hi Mark,

    I think you hit the nail on the head. I don’t see those giveaways being much help (in most instances) in building a fan base either. I’m interested in what you’ve learned from your experiences and I look for ward to more of your posts. Thanks!
    Rich Donahue recently posted..Juice Cleansing That Works Part IMy Profile


    • Twitter:
      Thanks Rich,

      One thing we all want out of business, is to build advocacy with our audiences, what I wrote about is something we undertook, took a step back and thought ‘wow…this is a pointless exercise.’

      Have another post scheduled on this site soon, so hopefully keep on providing articles of some interest.

      Thanks

      Mark
      Mark Masters recently posted..Do You Have An Audience Or An Influence?My Profile

  25. Not only are giveaways only good for a short period of time, the audience is completely uninterested in anything beyond the chance to win something. If you can actually keep a regular giveaway schedule then it seems like it would be a decent strategy. For most it’s unsustainable.
    Robert Koenig recently posted..Subway Operators Expect to Hit 1 Person in 5 YearsMy Profile

  26. i am agree with you social media is very ppowerful by its we get more customers and earn money i am also earning money by my blog on sharing data on blog,
    Rahul recently posted..Blogging Goals of 2013 to Make More MoneyMy Profile


  27. Twitter:
    i would like to disagree with the statement a little.
    as a new blogger i read that social interaction is one of the best ways to gain long term traffic so i gave it a try. with this i found that yes most of the small and even the most used social media networks don’t offer the niche specific groups which have enough interaction for one to bother with but there is one great social media site that links the right people with one another allowing targeted advertising and building of a sustainable community.
    Silas recently posted..How to make your blog popularMy Profile


  28. Twitter:
    If you believe the tried-and-true theory that building customers requires first getting their attention and then working through the sales cycle until finally they plunk down their money and purchase your goods/services, you can’t help but shake your head at those who run gimmicks like social media competitions, contests, etc.

    Granted, I’m biased towards the old-school theory of customer building as our business revolves around a long and arduous sales cycle with prospects who are technically oriented and are less likely to be persuaded by gimmicks and hyperbole, but I’ve never seen any evidence to suggest that I am wrong on this point. None.
    Ken recently posted..Carbon Injection Technology Shows Solid Potential to Remediate State Petroleum SitesMy Profile


  29. Twitter:
    Hi Mark,

    I definitely agree that building a following through social media and acquiring customers are two different things even though your following will convert to customers in the long run. Would you agree that paid media is the fastest way to get customers?
    Ardiv Jauhari recently posted..Social Media Revolution For Home Based BusinessesMy Profile


  30. Twitter:
    facebook will be all ours if we have followers! its just the propotionality that matters ! facebook – likes,twitter – followers . ! every thing ned attention and time !
    harshi recently posted..Everything to know about free sim cards deals and why you should be careful !My Profile


  31. Twitter:
    Although I do agree with you, having competitions also spreads the word about your existence on social media to people that may be fans of your company, that just didn’t know you were ON Facebook/Twitter.

    Yes, some people might just “like” or “follow” you based on the initial competition and then delete you, but you still might gain a huge following of people that genuinely DO like your company and have a desire to stay connected into your “goings-on”.
    Julie recently posted..Super Bowl Ad Teasers Leak OnlineMy Profile


  32. Twitter:
    i am completely agree with above points after sometime followers turn into cutomers and regular visitors .thanks for sharing
    Rohan Mod recently posted..5 Proven Methods For Google Adsense ApprovalMy Profile


  33. Twitter:
    Hi Mark ! you are at the right point. it is not competition but building more relation with global people. when we talk about social media optimization, it really important to come over form low traffic rate to viral traffics. in this competitive internet ages, social media plugin can help to move one step forward and easily monetize the ideas. when we think innovative ideas then it need to share with other people also need to learn from them.

    its time to share and get care from others. social media interaction became the habitual food for every guys and they want to get more features from it and social media also adding different features to engage more time in their site.
    it help to blogger and web site publisher to get lots of readers to their site. so that effective and positive interaction in social media can be fruitful.
    Googma Sansar recently posted..Social Media Optimization (SMO) StrategyMy Profile


  34. Twitter:
    There are millions of people who are addicted to entering competitions for prizes and they are not going to stay loyal to a brand just because of one prize. They simply move on swiftly to the next prize offering somewhere else.
    I don’t think its worthwhile running comps on social media sites just for a few likes (I believe Facebook isn’t tolerant of such comps and likes any more either). If you are going to run a comp then why not generate subscribers to your own site or newsletter? Then you could have them perform an “action” on your site like uploading a photo or adding phrase or comment to a post.. in order to be in for the prize that’s up for grabs.
    Granted some might subscribe then never return but at least you have their information and might be able to reach out to them easily later on with other tempting prizes and offers?
    Karen Maskall recently posted..Pledging for Change Competition SwoopsMy Profile


  35. Twitter:
    Social media is very important while it comes to building new customers. We should use social media effectively.
    Prakash recently posted..Download Subway Surfers for PC, Android FreeMy Profile


  36. Twitter:
    yes Free is a magical word.It is really catchy and able to attract everyone.Giving something in free is really a nice idea. Giveaways are the best for doing this.Thanks for sharing this nice post with us .
    Mahendra recently posted..List of best torrent sites for movie downloadMy Profile

  37. Hey Mark,
    Nice post and Thanks for sharing these tips with us. Yes, organizing contest and free reward really help in building relations. Social media sites are very important factor in blogging and helps in making new relations.
    Sudipto recently posted..Free Call App For AndroidMy Profile

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