Majority of Consumers Mistrust Sweeps and Contests: Survey

Marketers in the business of using games, sweeps and contests have a few hurdles to jump when it comes to assuring consumers that these promotions are legitimate, non intrusive and that their privacy will be protected, according to a recent survey.

When asked about their biggest concerns regarding sweepstakes and contests, less than 10% of respondents said they had no concerns. Forty-six percent said “I am concerned about receiving more junk mail, unsolicited e-mail, and sales calls,” while nearly 16% indicated that “fraud or scams” were their biggest concern with sweeps or contests (See Chart).

A subsequent question about “fraudulent or unfair” sweepstakes/contests indicated that 56% were “somewhat concerned,” and an additional 30% were “very concerned” about such promotions (See Chart). And in answer to the question whether they were concerned about “some people [who] attempt to cheat or gain an unfair advantage over others when they play sweepstakes/contests,” nearly 54% were “somewhat” or “very” concerned, and an additional 28% agreed with the statement that “cheating is outrageous, and companies should take steps to prevent it.”

Consumer privacy is a priority for the millions who enter games, contests and sweepstakes, according to the online study, conducted in May by Ascent Marketing Partners, Chicago.

Despite the widespread use of privacy policies in connection with online sweepstakes/contests, some consumers continue to have significant reservations about how their personal information is safeguarded and used. Thirty percent of those polled identified privacy or misuse of their personal information as their biggest concern with sweepstakes and contests. More than 60% of respondents either “always” or “frequently” review the privacy policy of an online promotion before participating; 71% stated that protecting their personal information was “very important” to them, and an additional 21% said that it was “somewhat important.” Hyper-aggressive marketing efforts and criminal or unethical tactics have contributed to the heightened level of public suspicion, the report found (See Chart).

“While some consumers are willing to divulge personal information in exchange for a chance to win something of value, marketers should be careful to avoid overstepping the bounds of common expectations as it relates to consumer privacy,” said Jed Weissbluth, president of Ascent Marketing Partners.

He said marketers need to accept the level of consumer skepticism and make the necessary adjustments when developing sweepstakes, contests, and games. Weissbluth suggested the following:

1. Ask yourself: How much data MUST you collect? For online promotions, consumers routinely use multiple e-mail accounts, provide the minimum required information to enter, and tend to be wary of inviting a flurry of subsequent advertising or sales pitches. Sometimes less is more; minimize the amount of personal information collected and prominently state on the entry form or game piece exactly how the information will be used (instead of burying it in the fine print of a privacy policy or statement of the “Official Rules”).

2. Get permission. Unlike their counterparts in the European Union, where consumers control the use of their personal information, American marketers tend to believe that information freely given is a license to use the information however they please. At the same time, the “collect-as-much-as-possible-and-figure-out-how-to-use-it-later” approach doesn’t build consumer confidence. Permission is essential: ask consumers to “opt in” for subsequent marketing efforts, state consumer privacy norms in plain English (preferably on the entry form itself).

3. Battle cheating and highlight your security measures. Consumers have heard of unscrupulous techniques used in those well-publicized corrupt promotions. Reassure them that they are getting a “square deal” even when there is no cost to enter.

4. Adopt best practices. Eighty-seven percent of survey respondents support industry standards. These are a significant step towards restoring consumer confidence that: (a) the promotion is legitimate, and (b) steps were taken to safeguard personal data, ensure fair play/discourage fraud, adhere to privacy norms, and otherwise act in a manner consistent with the sponsor’s brand or corporate policy.

This study is based on responses generated through a May 2004 online survey of 255 men and women who participated in a survey at Sweepsurvey.com. Cash prizes were distributed through a drawing after the conclusion of the survey.

Sweepsurvey.com. Cash prizes were distributed through a drawing after the conclusion of the survey.
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