Giveaways versus Promotions

One of the most important lessons I can teach a customer is the difference between a Giveaway and a Promotion. They may seem like the same thing, but they are very different - and the difference is results.

A Giveaway is just that - something your company or organization gives away. While that may get your name in front of your customer, it may just as likely end up in a drawer somewhere. For example, if an auto dealer orders 1000 keychains, that's a giveaway. It may get the auto dealer's name into the hands of a potential customer, but that's it.

A Promotion, however, is a different beast entirely. It is designed to entice and compel the recipient by including a specific call to action. It includes layers of action, and produces a measurable result.

Using the auto dealer example, what if instead of the just a keytag, it included a key as well? Make the key part of the mailing, and have it say

"Bring this key to our dealership with 30 days (or some other specific time frame). If it opens the door to our new 2008 Whizzer (or whatever car they choose), you win a prize."

The prize can be a travel mug, a dashboard cell phone holder, or even that car itself, depending on the budget of the company. You can even add secondary incentives such as:

"Everyone who visits and takes a test drive received a custom auto back seat organizer (or a CD holder)."

"Everyone who purchases a car during this promotion receives a pair of custom driving gloves (or a $100 gas card)."

The idea is to compel the actions you desire, and to be able to measure the results. The dealer would know how many people would visit from this promotion by the number of keys returned for a prize, and by also tracking test drives and sales, can then evaluate the success of this program.

Tomorrow, we'll talk about the different questions you need to answer when planning a promotion. Until then, have a great day.