Direct Marketing has proven to be the most productive marketing tool for most of my client’s Store Closing Sales. For direct marketing to be effective you must have a good mailing list. A customer contest or prize drawing is a good tool to help you build a large and current mailing list.
Some store closing consulting companies use complex and sometimes confusing customer contest to help build that list and to motivate customers to come back to the store multiple times during the Store Closing Sale. It has been my experience that in many cases the effort and money spent on running the contest far out weigh the benefits. Many times less than a handful of people actually are active in the contest. Most names are captured during the first week of the Store Closing Sale and the same results can be obtained with a “prize drawing” .
The prize drawing does not require the same maintenance that a full blown contest does.
The information that you should capture is customer’s name, address, telephone number and email address. This information will allow you to market to the customer multiple times during your Store Closing Sale. Email has proven to be a very cost effective means to reach a customer. You should use a combination of email and direct mail to reach these people through out the sale. Make sure that each contact makes a new offer or provides new information that requires immediate action on their part for them to benefit.
The prize must be significant enough for the customer to take time to enter. Many times I include an entry card with the initial mailing that must be returned to the store in order to participate. Always have entry cards available at your store during the Store Closing Sale for customers to complete. You should not require a purchase to enter the drawing. The date of the drawing should be set toward the end of the sale. Always include information about the drawing and prize in each marketing piece.
Remember, your goal in using a drawing is to build a large and current mail and email list. But, it doesn’t hurt to build some goodwill along the way. Calling the drawing a “Customer Appreciation Drawing” is a good way to accomplish that.