How To Use Giveaways To Grow Your Ecommerce Business

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Who doesn’t love gifts? Everybody loves them. As human beings, we feel valued and fulfilled when we receive gifts from other people. 

It gives our moods a boost, and most importantly for you and me as entrepreneurs, it makes the other person want to give back.

So… How can we use giveaways to grow our businesses?

How do giveaways work?

Before we jump into the details of the strategies that you can implement to grow your business through giveaways, we need to understand the concept of giveaways first.

A giveaway is simply the act of giving a few products away to a certain audience in exchange for email opt-ins, following you on social media and liking certain posts, sharing the giveaways with friends and family, or all of the above.

Free giveaways are one of the most effective ways of getting huge brand awareness. It doesn’t always stop at that… You also get tons of emails into your list, alongside a huge amount of new followers on social media.

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Why should you use giveaways to grow your ecommerce business?

As I mentioned earlier, there are a lot of perks that you can harvest from using the giveaway strategy. Here are some of them:

  • People will love your brand: It’s no wonder why we love people that give us presents. The same applies to businesses. So if you want your audience to love you, a free giveaway is probably what you need.
  • You can easily grow your email list: You’ll be amazed at how many leads your business can generate from a giveaway. 
  • The average cost for acquiring one lead through Facebook Ads is between $3-$4 USD.  You can get new leads into your list for way cheaper than that. We’ll get into the details later at the end of this article…
  • You can easily grow your audience on social media:  Just like growing your email list, you can grow your main social media accounts easily with a free giveaway. You can then engage them and explain your message to them through your social media posts, and within a couple of weeks, they’ll become believers in your causes, and have no resistance towards buying your products…
  • Grow your messenger list: Messenger has the highest open rates and click-through rates, that’s why growing your messenger list should be a priority for your business. It will certainly prove to be a valuable asset of your business if you do it right. And the easiest way to grow a messenger list very fast is a free giveaway…

Best ways to use giveaways to grow your business:

As I mentioned earlier, you can easily grow your email and messenger list, alongside your social media profiles in less time if you leverage the power of giveaways. 

But to help you a little further do it the right way, here are a few tips concerning each one of them:

1.  Grow your email list

If the main goal for your giveaway is to capture emails, then you need a landing page designed especially for that, to ensure a high conversion rate.

Most email marketing software like MailChimp and GetResponse have a plan in which you can create good landing pages. They also have great templates that you can modify, add images, headlines, bullet points… etc, and you’re ready to send traffic in (which I’ll show you how to do it later on this article).

Once someone opts in, you should make sure he receives a welcome email, and a nurturing email sequence, before you can start sending them sales sequences to sell your products or services.

Read The Ultimate Email Marketing Guide For Ecommerce Stores.

2. Grow your audience on social media

Another very important way to grow your business with giveaways is by having your prospects follow you as a condition for them to join the giveaway.

You can simply inform them that the winners will be chosen from the followers of the page, or people that followed and liked certain posts.

Also, make sure your posting schedule on your main social media accounts is already set. For the sake of automating this process, you can use tools like Hootsuite.

Once people are following you on social media, you can then reach a portion of them organically, promote your products to them, offer occasional discount codes… etc.

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3. Grow a Messenger list

One of the most important, yet neglected ways of growing your business through giveaways is using messenger.

As I mentioned earlier, Messenger has an open rate and click-through rate that are 4 times higher than email marketing’s open and click-through rates. That’s the most powerful thing about Messenger marketing.

There are 2 ways to run a giveaway through Messenger.

The first one is having people reach out to your Facebook page, and then click the autoresponder button that you can easily set with ManyChat. Once someone clicks a button on your conversation, they’re automatically added to your list.

The other way is to use Growth Tools in ManyChat to create a button or a lander that your prospects can opt-in to the giveaway through.

Make sure to create a nurturing sequence before you start selling to your Messenger list, as you can get tons of unsubscribes if you give your list the impression that all you want is to sell them stuff. So make sure you bring value and build rapport before you start selling.

How to make your brand go viral with giveaways?

There are a lot of ways you can promote your giveaway and make it go viral. Below are the best strategies to implement:

1.  Have influencers do the marketing for you

If you’re already using influencer marketing, you’re one step ahead. If not, you’re leaving money, and brand awareness on the table.

A great way to promote your giveaways is by having influencers do some of the marketing for you.

In case you already have established relationships with some influencers, you can send the ones that get you the best results among them the giveaway product or bundle that you want them to promote, alongside the URL of the giveaway page, and let them do the rest. You’ll be amazed at what the word “FREE” can get you through influencer marketing.

Another way that you can do to get more brand awareness through influencer marketing is by sending a few free products to influencers and have them share it with their audience. It works great.

A great example of a brand that follows this strategy is Tiege Hanely.

2. Use Google Ads to get interested people

You can get a lot of clicks from people that are interested in what you have to offer from Google Search and Display ads, which will drastically increase the conversion rates for your giveaway.

For Search Ads, you want to target the keywords related to the products you’re giving away, test them out, and see which ones are getting you clicks and results for cheaper prices.

For display ads, you will need to create attractive banners that show what your prospect is going to get in case they participate in your giveaway. You will need to test what banners work better, what ad groups get more results, and so on.

Read: Keywords Research Guide – Find The Right Keywords For Your Business.

3. Promote your giveaway on social media.

You can get lots of leads and make your giveaway go viral on social media. The best social media platform to run ads on is Facebook, as all kinds of audiences are there.

The objectives of campaigns you can test are Brand Awareness, Traffic, Engagements, and Conversions (leads) depending on what your giveaway objective is.

Paid ads are an expensive option, but with lookalike audiences of traffic you get from influencer marketing and Google Ads, and with the help of the next tip, you can get three times what you paid for.

4. Encourage prospects to invite friends and family.

If you manage to make each person you get through influencer marketing or paid ads to invite another person to join the giveaway, and then have the invited person invite another person as well, your giveaway is going to go viral, and you’ll get a massive amount of leads. It’s the snowball effect.

It sounds very compelling, but how can we actually do it?

You can create a system that gives more points to those who do more to win the prize. The more points people have, the higher their chance of winning the prize.

You can easily achieve this with the help of a software called Gleam.

You just have to set up the conditions, and the number of points given to the prospect every time a condition is met, and you’re done.

Make sure you don’t make the conditions too complicated, as it will affect your giveaway’s conversions negatively…

One last tip

Giveaways are awesome. People love them, they help you grow your business. So it’s a win-win deal.

However, if you do it mainly for the money, it can generate the opposite result as you anticipated before.

Before you go ahead and write down the strategy for your giveaway, there’s one very important question you need to answer: Do you believe in your product?

If your product is rubbish and you know it, people can see it, and you’ll only end up losing money. However, if you’re selling products that bring a lot of value to your prospects, giving it away will bring back value to your business, give you a huge boost with word of mouth, and help you grow.

The bottom line: Bring value, and profits will follow.

Guest Post by Yassine Ouasbir

Yassine Ouasbir is the Founder and CEO of Ecommerce Prophet. An agency focused on helping entrepreneurs and businesses build a solid online foundation, scale, and expand. Connect with them on Facebook & Linkedin

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