One key to a successful chance promotion is the development of an effective prize structure. After all, if the consumer is not interested in winning the prize you offer, then they will not be interested in your promotion. So what should you take into consideration when constructing a prize structure for your promotion?

1. Budget – One reason chance promotions are so appealing to marketers is their fixed budget. With a little creativity and the application of the following principles, it's possible to create greater buzz and response from a $5K or $10K prize structure than from an ill-constructed $100K program. So, once you know what you can afford to spend on prizes, make that budget work hard for you.

2. Audience - Know your audience, and what appeals to them. Moms may not be interested in winning prizes that are toys, but when those toys come inside a brand new car, the response is very different.

3. Theme – Stay focused on your theme. Whether it is the theme of the promotion or of the overall brand campaign, consumers respond better to prizes that make sense and are integrated with the branding message.

4. Timing – When offering trips to time-sensitive events, (like the Super Bowl or the Olympics), keep in mind that you must allot enough time between winner selection and the date of the event to account for qualifying a winner, validating that winner and making the trip arrangements. (Also, be sure you have the proper permissions when leveraging events like the ones mentioned here...but that's a topic for another day.)

Allure and Volume – The two most motivating factors regarding prize structures are:

1) the allure of the Grand Prize

2) the volume of lower level prizes

Cash is always alluring, and in this case, bigger is better. But it doesn’t always have to be about the money. Sometimes it is simply access that no one else can have. A walk-on role in a movie or TV show costs the producers of the show very little. Pre-Game on field passes, coupled with an athlete "meet-and-greet" at a sporting event can make the prize winner feel special in a way that money cannot buy.

A promotion that offers only one prize is often met with skepticism by consumers, who feel that their chances of winning are remote. So it stands to reason that the more prizes offered, the better the perception of a consumer’s chance of winning. Even if that prize is a simple download, everyone loves to win!

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