Jul 17, 2003 12:00 PM

Attractive odds for winning an instant-win game can contribute to overall concept appeal. But high participation may come at too high a cost. A client recently designed an instant-win promotion featuring entertainment prizes, and wanted help weighing the effect of increasing the odds from 1:1 ("Every card is a winner!") to 1:3.

Research showed that increasing the odds of winning to 1:1 did marginally improve appeal scores, positive image potential and plan to participate as compared to odds of 1:3. But gains in potential participation were not consistent throughout customer segments. In fact, increasing the odds to 1:1 drove participation only among the client’s current customers. At the end of the day, we recommended 1:3 odds given that:

*Intended participation rates reached IMI’s impact norm for success—driving incremental sales among competitors’ customers;

*The promotion drove a positive impact on the client’s image; and

*It cost the client one-third the price in prizing given the 1:1 vs. 1:3 prize pool.

*Source: IMI International

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