The organisation of loyalty schemes has a direct impact on boosting sales, as it is generally a beneficial and effective initiative. However, for such a campaign to be successful, it is essential to take the customers’ expectations into account. Participants can be effectively encouraged to take part through additional incentives, such as prize competitions. We explain what lotteries supporting loyalty programmes are and why it is worth organising them!
Lotteries supporting loyalty schemes
Under the provisions of the Gambling Act, four types of lottery are recognised as legal in Poland: promotional, audiotext, raffle and cash lotteries. The first type is by far the most popular. It takes the form of a short-term campaign, treated as a game of chance, aimed at people aged 13 and over.
To take part, you must meet certain requirements – in this case, you must be a member of the loyalty scheme and purchase the promoted product or service. Prizes, whether in kind or cash, are awarded to winners selected by a prize draw. Well-organised prize draws supporting loyalty schemes are a very popular marketing tool, as they enhance brand image, attract new customers and boost sales.
How do lotteries support loyalty schemes?
Promotional prize draws support loyalty schemes in four ways:
Firstly: they boost the programme’s impact – an interesting promotion helps to increase sales, as it effectively encourages customers to make more frequent and larger purchases;
Secondly: they offer access to more attractive prizes – due to tax regulations, most prizes offered in loyalty schemes are worth no more than 2,000 złoty gross. A lottery offers the chance to win much more valuable prizes, such as a car or an all-inclusive holiday. In this way, the programme may attract new participants, as well as those who have been inactive until now;
Thirdly: they help to establish a dialogue with the audience – every change to the programme re-ignites the participants’ interest. A prize draw provides an opportunity to reconnect with the audience, not only by encouraging them to take part, but also by inviting them to share their views on the whole campaign. In this way, you can gain valuable feedback;
Fourthly: they make it possible to eliminate balance sheet reserves – participants in the lottery exchange their accumulated points not for a prize, but for a chance to win. This fact makes it easy to deal with balance sheet reserves, which are recorded in the accounts as points issued but not redeemed.
How do you organise a prize draw as part of a loyalty scheme?
Organising a promotional lottery is a real challenge, particularly for organisations that have never undertaken such projects before. The lengthy and complex preparation process involves various administrative, legal and tax formalities, amongst others. Furthermore, the entire procedure is supervised by, amongst others, the Director of the relevant Tax Administration Chamber and the Head of the Customs and Tax Office.
Problems can arise not only during the preparations themselves, but also when overseeing the running of the event and summarising the results of the lottery (including its financial settlement). If you wish to achieve the best possible results and maximise the benefits, it is wisest to seek the support of a professional company specialising in organising such events.
