Do you want customers to get more involved with your business? Of course, you do! Every business wants more sales, engagement, and loyalty. One of the best ways to spark this involvement is through the use of giveaways.
Now, before you dismiss the idea as only for influencers or media companies, it’s important to understand that giveaways can be powerful if executed properly, and they can help your customers keep you top of mind.
Why you Need to Collect more UGC
Content is King
Every business needs more content for their website and marketing. User-generated content (UGC) is a valuable source of content for businesses, as it offers a unique and authentic perspective that promotes your products and services.
More Content = More Social Media Posting
Customer UGC can help eCommerce businesses have more content to work with for social media posts. Real customer photos vs. perfectly captured product promotional photos tend to work best for social media, especially Instagram.
This type of content is more relatable and helps to build trust with potential customers, making them more likely to purchase from your business.
Customers will Feel Invested in your Business
Encouraging customers to share photos or video testimonials helps them feel invested in your business.
When customers are happy with a product, they feel a deeper connection to the business when they visually express their satisfaction. This connection can greatly impact your relationship with them, and vice versa.
Want to make a customer for life with this strategy? If the customer shares a photo or video testimonial, be sure to share that with their review and post the content on social media. Sharing customer content can be laborious, but TrustSpot makes it easy for you to do this for your website reviews and social media!
By doing this, you not only show your appreciation for the customer’s feedback, but you also create a deeper connection with them, which can lead to increased loyalty and engagement.
Real-life Use-Cases
Content from customers helps businesses know how the product looks and functions in the real world. This information can be used to refine your target marketing and messaging based on the content provided by actual customers.
For example, let’s say you sell camping gear, and a customer recently purchased a camping tent from your business. They take a photo of themselves and their friends setting up the tent on a camping trip and post it on their Instagram account. In the caption, they mention your business and tag your account, expressing how easy it was to set up the tent and how much they love it. T
his user-generated content (UGC) is extremely valuable for your business, as it shows the real-life use-case of the product, and highlights the customer’s positive experience with it. You can then share this content on your own social media accounts, further spreading the word about your product and showcasing its real-life use to potential customers.
Collect more UGC with Giveaways and Sweepstakes
A giveaway is a marketing campaign that offers a prize or incentive to encourage customers to engage with your business. A sweepstakes is similar to a giveaway, but the winner is selected through random chance.
Types of Giveaways and Benefits of Each
Traditional Social Media Giveaway
This is the most popular giveaway form with influencers. They share a photo of the prize and ask their followers to like, follow, and comment on the post to enter the giveaway. eCommerce businesses can do this with products or partner with other businesses to giveaway larger prizes that aren’t just about their business.
The best channels for social media giveaways include
- TikTok
- Email newsletters.
The benefits of this type of giveaway include increased followers/subscribers, a boost in engagement, and getting your product(s) in the hands of a future customer.
User-generated content contest
Encourage customers to share their own photos or videos on a social media platform of choice. When doing so, require them to tag your business in the caption to enter the contest.
This type of giveaway strategy requires a customer to do more than normal to enter, so make sure the prize has a high value. Although you may get less engagement, the impact could be greater due to the prize being higher in value vs. other smaller giveaways.
The benefits of this type of giveaway include herd mentality and social proof. Having others talk about you is more impactful than you talking about yourself.
Product design contest
Allow customers to submit designs for a new product or product line. Offer a prize for the best design, and consider using the winning design in your product offerings. This not only increases user-generated content, but also allows you to tap into the creativity of your customers.
The benefits of this type of giveaway include creative ideas, opportunities to connect deeper with customers, and unique ideas that will stand out.
Survey Giveaway
Create a survey, allowing customers to upload content through the collector and enter them to win a certain prize if they complete the survey. Not only will this help you get more content, but you can also ask feedback-type questions.
These are great to conduct on a quarterly, bi-yearly, or yearly basis.
The benefits of this type of giveaway include the ability to collect feedback from past customers, customers being more willing to enter since it’s anonymous, and the continued opportunity to show customers that you care about their opinions.
Know before you Launch…
This sounds awesome, I know, but before jumping at the opportunity to host a giveaway, it’s important to be aware of the laws in your country and state. Some are more strict than others.
For example, Alabama does not allow any business to require a purchase of a product or service for the chance to win a prize since this would be considered gambling, and that is mostly prohibited throughout the state. So, here are some general guidelines to take note of:
Disclosure:
- Make sure to clearly disclose the terms and conditions of the giveaway or sweepstakes, including how winners will be selected, the prizes that will be awarded, and any restrictions or limitations.
Age restrictions:
- Some countries have age restrictions for giveaways and sweepstakes, so be sure to check the specific rules in your area. In the United States, for example, sweepstakes and giveaways are typically open to individuals who are 18 years or older.
Entry requirements:
- Some giveaways and sweepstakes require participants to make a purchase, while others allow free entry. Be sure to clearly state the entry requirements in the terms and conditions.
Prize restrictions:
- There may be restrictions on the type of prizes that can be awarded, or on how the prizes can be redeemed or used. Be sure to research the specific laws and regulations in your area to ensure that your prizes are in compliance.
Tax implications:
- Depending on the country and region, there may be tax implications for the winners of giveaways and sweepstakes. Be sure to research the specific rules in your area and, if necessary, consult with a tax professional.
False or misleading information:
- Do not make false or misleading statements in connection with your giveaway or sweepstakes. This includes false or exaggerated claims about the prizes, or false statements about the odds of winning.
Conclusion
Giveaways and sweepstakes can be a majorly successful strategy for eCommerce businesses. It’s especially useful when you need to collect more UGC and customer engagement. By offering a prize, businesses can connect deeper with their customers and visa versa.
However, it’s important to be aware of the laws and regulations in your area. Carefully review the terms and conditions of any platform or service you use to host your giveaway or sweepstakes. They may have their own requirements and restrictions.
