Sweepstakes? Great List Builder, But…

Your marketing is only as good as your audience. In other words, the better your list, the better your marketing.

But “better” is a subjective definition of a list. Does better mean quantity or quality?

Quantity is for businesses that sell products/services for the masses. These businesses generally offer a commoditized and price sensitive product in a market with many competitors. For them, a “better” list means a longer list of prospects. Think soft drinks or pizzas.

Quality is for businesses that sell products/services for a niche market. These businesses usually sell a unique and differentiated product in a market with only a few direct competitors. For them, a “better” list means more qualified prospects. Think luxury cars or swimming pools.

Small businesses should fall into the latter category where quality of a list is paramount to quantity. A small business with a strong Marketing DNA will know that a targeted niche is more attractive than a mass list. More qualified prospects is always better than more prospects.

So should a small business build its list with a sweepstakes?

A sweepstakes can be a great way to build a list. Give away your product for free for those that sign up on your website, at a conference or in your store. If you gather these names and add them to your database, you are growing your list.

But the names you gather aren’t necessarily the most qualified. They are only people that have signed up for your contest. This doesn’t make them high-quality leads. In fact, they might just be freeloaders looking for a handout that would never purchase from you in the first place.

Sweepstakes responders are a skewed list towards those interested in the free prize.

You can still do a lot with your sweepstakes. If you are considering a contest to build your list, be sure that your procedure gathers actionable data. Think of ways to further qualify leads. For example, ask when the prospect would be in the market for your product or service. Or invite entrants to subscribe to your e-newsletter. Maybe include a multiple choice question about the best way to follow up.

Leads are great, but qualified leads are better. Move your business to the next level with quality not quantity.