Case Study: How To Run A Profitable Facebook Competition For Your Business
In this case study we are going to detail how a small fashion boutique located in Wigan, UK, managed to add 500 people to an email list, generate an additional £2,000 in revenue, while also increasing the number of “likes” on their Facebook Page by over 1000.
Oh, and I almost forgot to mention… this was all achieved in the space of a single weekend.
Here’s how we did it.
Our aim was to attract the attention of potential customers in their local area, boost brand awareness, increase sales, and build an email marketing database of highly-targeted prospects who could be contacted whenever the business was launching a new product line or wanted to promote a special offer or discount.
The campaign was extremely simple to execute, but proved to be highly effective and consisted of three different elements.
Step 1: The Plan & Creation Of The Offer
What most businesses do wrong on Facebook, especially when it comes to promoting special offers and discounts, is they simply throw them up on their Facebook Pages without firstly considering who will see those offers (if anyone at all) and without a defined call-to-action
It’s essential when you promote an offer on your Facebook Page that you firstly take time to think about what action you would like your prospects to take, and how you can get your offer in front of as many of them as possible.
In this case, Sneaky Peeks Boutique wanted to promote a free competition they were running.
Let’s face it. We all love free stuff, and most of us will jump at the opportunity to enter a free competition – especially if it is quick and easy to enter – and provided we have a chance of winning something that is actually worthwhile.
So, in contrast to simply promoting a discount voucher that required prospects to make a purchase (meaning the response rate would have been much lower), the competition generated a lot of interest in a very short space of time. Ultimately, we wanted to build Sneaky Peeks an email marketing database that they could continue to monetize for many years to come.
In return for their name and email address, people were automatically entered into a prize draw where they had a chance of winning a £50 voucher to spend in-store.
By collecting this data, it gave Sneaky Peeks Boutique an opportunity to re-market to this database of competition entries in future instances by promoting special offers, new product lines, etc.
To design the coupon, we used Mobelio’s drag and drop Mobile Coupon Builder.
We created a clean and minimalistic mobile-friendly coupon that prompted people to enter their name, email address and phone number upon clicking the “Enter Here Now” button:
By using Mobelio to create the coupon, it gave Sneaky Peeks Boutique the opportunity to use Mobelio’s built-in email and SMS functionality to stay in touch with people who entered the competition in addition to enabling them to track results in real-time.
Because we had decided to target mobile users (which means that screen size is limited), it was important to keep the text describing the offer short, sweet and to the point.
Upon entering the competition, people would then be automatically redirected to a “Thank You” page that thanked them for entering the competition and encouraged people to also like Sneaky Peeks Boutiques’ Facebook Page.
In other words, we were “killing 2 birds with 1 stone”, so to speak, by not only building our client a marketing database but also boosting brand awareness by increasing the total number of “likes” on their Facebook Page.
Once we’d designed a coupon highlighting the opportunity to win a £50 voucher to spend in-store the following week, it was time to put the offer in front of potential customers!
Here’s where things get really exciting.
Step 2: Setting Up & Executing The Campaign
Once we had decided upon an incentive to encourage people to enter our competition (in this case, we used a £50 voucher to capture people’s attention) it was time to put together an advertising campaign to gain mass exposure.
Although these mobile-friendly coupons can be advertised anywhere on the web, for the purpose of this case study we decided to advertise it on Facebook ONLY.
All we did was announce the competition on Sneaky Peeks Bputiques’ Facebook Page, just like they would normally do with any other post. In addition, we provided a link for people to enter the competition, and used an eye-catching image to draw attention to it.
Almost immediately, due to the viral nature of Facebook and the highly-targeted nature of our ad campaign, Sneaky Peeks Boutique started to receive competition entries.
This literally started happening within just a couple of minutes… and we had only just begun!
It was easy to enter the competition as the link posted on the page opened up the mobile coupon competition page (seen further up in the post) and with one button tap on a phone or desktop, gave users the easy option to enter their name and email to enter.
As a large majority of Facebook users are using smartphones, the mobile aspect of the competition coupon worked flawlessly.
Now, posting on the Fanpage alone would/did give us an initial boost but we knew this would be short lived and we really needed to promote it using the ad platform.
You see, what most businesses don’t know is that when you post something on your Facebook Page, the distribution of that to your fans (Likes) is extremely limited.
Facebook will not show your posts to everyone that “likes” your page and the actually reach (people seeing your posts) can be as low as 8%. This may be the reason you see little, to no interaction currently when posting new updates to your Fanpage.
Although with our competition here we started to see results right away, we needed to take this to a much wider audience and we did that with the Facebook Ad platform.
Using Facebook Ads To Grow The Exposure Of Our Competition
With this competition, we wanted to gain as much exposure as possible within the local area. The more people locally that entered, the better, as they would all be on the database for future promotions and updates.
We managed to pull in 500 entries over that one weekend with this competition, and all of them were within the local area.
To do this we promoted the post we had just posted on the fashion boutiques fanpage.
Targeting Makes All The Difference
We promoted the post to everyone within the local area of the boutique store, which in this case was Wigan, UK. We also promoted only to “Women” and between the ages of 18-40. This is the main target market for this particular business. They are a trendy fashion boutique for women only. So, to get the best results, and to ultimately make sure all money spent on Facebook Ads, was actually spent on an audience that would be interested in this particular offer and business, getting the targeting right was crucial.
Facebook lets you show your ads to whoever you want to through their interests and targeting options, so this was fairly straightforward and yielded the best results. Our competition was only going to be shown to those that would be interested in entering!
This allowed us to gain more exposure for the competition and women between the ages of 18 and 40 within the local area of the store were now seeing the competition on their Facebook news feeds. This generated a huge response and over the weekend the competition ran, we generated exactly 500 entries, which meant we rapidly built an email database of potential customers that Sneaky Peeks Boutique now had access too for future promotions and more.
Step 3: Analysing The Results
The competition ended on the Monday morning and the fashion boutique chose a lucky winner from the 500 entries.
The winner was announced via email, which was sent to the entire new database of competition entries.
Within the email where Sneaky Peeks’ announced the winner, they also thanked everyone else for entering and as a “thank you” offered a 20% discount that could be spent in store that week.
This went on to generate over £2000 in revenue that week from competition entries that took the fashion boutique up on the 20% discount. The power of the email database really comes through here.
Without the email database, this extra offer could not have been made, and the extra revenue would not have been generated.
Let’s take a look at the numbers…
- The competition generated 500 entries, all collected on an email database the business owner of the boutique can now contact with future offers.
- The competition exposure helped generate over 1000 new Facebook page likes
- The competition also helped generate extra brand exposure locally as all weekend the fashion boutique was appearing on news feeds all over the local area, right in front of their target market.
- And of course, the extra 20% offer as a “thank you for entering” helped generate an extra £2000 in revenue that week too.
- This was all from one competition coupon campaign, over just one weekend.
You can see the LIKE increase here over the period…
The power and results of this one campaign are still being felt, every single week. With the email database of competition entries, the fashion boutique owner can now email everyone at the touch of a button to promote new offers and products, and introduce new stock lines in store too.
All of these people are interested in what the store has too offer, as they initially entered a competition to win a voucher to spend within it, so it is a super targeted database. This was something they never had the power to do before (email out offers and promotions to potential customers), and now they can generate extra sales revenue whenever they want too!
Takeaways For Your Business
Running competitions, coupons and special offers on Facebook is great, but without a clear goal and plan of action, they can be worthless. In the majority of cases, most businesses that have tried to promote a special offer or discount on their Facebook page have never seen any real results.
When announcing your next business special offer or discount on Facebook, do it more strategically and think of the longer term. This campaign is simple in the grand scheme of things, but using the right tools, and constructing a well thought out campaign, with a definitive and easy call to action, rather than just throwing an image or random offer up, produces much stronger results.
I hope you enjoyed reading and if you would like to discuss how we might be able to help your own business tap into the potential with a campaign just like this, get in touch with us here!