Now is the time to embrace change and optimize your charity marketing strategy ready for the future of prize-led fundraising
In an ever-evolving landscape of uncertainty for UK fundraisers, prize-led fundraising continues to hold relevance and promise – and this doesn’t appear to be changing for the future. The ability to generate additional income, attract a different supporter profile, and offer a more engaging and fun experience are just a few reasons why prize-led initiatives remain robust for nonprofits and charitable organisations.
This guide delves into 5 key strategic considerations for charity fundraisers as they navigate the future of prize-led fundraising and develop powerful marketing strategies that boost donor engagement.
If you're a charity fundraiser working in raffles and weekly lottery, you might find our Prize-Led Fundraising Benchmarking and Trends webinar of interest which is now available on-demand.
What Makes a Successful Charity Prize-Led Fundraising Strategy?
1. Using Data and Insights to Define Your Target Audience
Want to know the secret to a lottery campaign that actually works? It starts with understanding who your players are, and why they signed up in the first place.
When you dig into your supporter data, you'll quickly spot patterns. Which emails got the best response? Did your Facebook campaign bring in more players than your newsletter? Are certain age groups or demographics more engaged than others?
This isn't about becoming a data scientist overnight. It's about asking simple questions: Who's playing? Where did they find us? What made them click 'sign up'?
Your CRM system (yes, even a basic one) can tell you which campaigns are working and which aren't. And once you know what resonates with different groups of supporters, you can do more of what works and less of what doesn't.
The beauty of understanding your player profiles is that it takes the guesswork out of your marketing. Instead of hoping your next appeal lands well, you'll know exactly who you're talking to and what matters to them. That clarity makes all the difference when you're trying to connect with potential supporters and grow your lottery programme.
Consider segmenting your supporter base by demographic data, giving history, and engagement levels across different marketing channels. This approach helps you identify trends in player behaviour and allows you to tailor communications that speak directly to each segment's interests and values.
2. Strategise with a Focus on Life-time Value and Donor Retention
While return on investment (ROI) is important, it is equally vital to focus on life-time value and retention. Sometimes, investing in regular giving and lottery programs may require higher initial investment (and therefore lower campaign ROIs) to generate lifetime value and sustained income.
Consider the balance between acquisition and retention, testing different strategies and optimising your stewardship efforts.
Creating a successful retention strategy means looking beyond single transactions to build lasting relationships with your donor base. This requires a comprehensive marketing plan that includes regular communication, storytelling that demonstrates impact, and recognition programmes that make supporters feel valued.
When supporters feel connected to your cause, when they see themselves as part of something meaningful rather than just buying a weekly ticket, they stay. Better yet, they start talking about your lottery to friends and family.
And that's when you've cracked it: players who renew without thinking twice, who open your emails, who feel proud to support your charity. Those are the relationships worth building.
3. Explore Different Marketing Channels to Reach New Audiences
Knowing who your ideal players are and utilizing the right channels to reach them is essential. Some of the emerging trends of prize-led are:
- Alternative payment types, particularly when targeting younger audiences who expect seamless digital experiences
- New digital platforms and social media channels that increase visibility and awareness
- Innovative partnership opportunities and collaborations that expand your reach
We advocate testing new methods, but at the same time, it's important to be mindful of traditional offline channels too which remain effective in acquiring and retaining raffle and weekly lottery players.
Here's the thing about marketing your lottery: stick with what works, but don't be afraid to try something new.
If your email campaigns are bringing in steady sign-ups, keep doing them. If Facebook's delivering results, double down. There's no point chasing innovation if your tried-and-tested methods are working.
That said, don't let "we've always done it this way" stop you testing fresh ideas. If your potential supporters are on Instagram or TikTok and you've never tried it, maybe it's worth a small experiment.
4. Review Your Prize Portfolio to Appeal to Your Target Market
Traditional cash prizes have been the norm in prize-led fundraising as they give the audience the opportunity to dream of what they could use it for: a new car, a holiday, a kitchen. However, is this still relevant to a younger prize-driven audience?
It is crucial to evaluate whether your future initiatives require a shift toward more experiential and unique prizes that money can't buy. Consider innovative approaches like partnering with platforms that offer exclusive experiences and providing new and exciting opportunities for engagement.
A small note here - remember that all players must have an equal opportunity to win as part of the GC LCCP so whatever you decide as your prizes must be the same for all players. Need more info on what you can do on your raffle or lottery which is compliant with the GC LCCP? Chat to your External Lottery Manager or contact a legal expert like the team at Woods Whur.
5. Balance Digital Innovation with Known Success
Prize-led fundraising is evolving fast, with digital channels opening up brilliant new ways to reach supporters. But here's what you need to remember: online isn't automatically better than offline.
Direct mail still works brilliantly for raffles. Face-to-face recruitment can be gold for weekly lotteries. Email campaigns might outperform your Facebook ads, or vice versa. The point is, you won't know until you test.
The smartest charities blend both worlds. They use email automation alongside printed flyers and well-timed direct mail drops that land in front of supporters at the right moment. They tell stories on social media while still making personal asks at events. They try new acquisition channels without abandoning what's already bringing players through the door.
And crucially, they watch the numbers. Which channels deliver the best value? Where are your most engaged supporters coming from? What's the actual cost per player across different tactics?
If you're not sure where to start, or you want help building a strategy that pulls it all together, working with a charity marketing agency can make sense. They'll help you test, measure, and refine until you've got a mix that works for your organisation.
The goal isn't to be everywhere. It's to be in the right places, doing the right things, based on what your data actually tells you.
Case Study: Macmillan Lottery - Creating a Successful Strategy for Long-Term Growth
For Macmillan Cancer Support, the UK's leading cancer care charity, improving efficiency and optimising existing channels while exploring new product development opportunities is where the future lies. They recognize the potential of experience-based prizes and the importance of engaging supporters through more sophisticated stewardship and retention efforts. By putting supporters at the heart of their initiatives and demonstrating the impact of their support, Macmillan strives to build stronger, longer-lasting relationships.
Innovation is Important but the Supporter Should Remain Central to Strategy
As the fundraising landscape evolves, prize-led initiatives continue to offer great potential for charities. By harnessing data insights, focusing on acquisition and retention for lifetime value, optimizing channels, reimagining prizes, and embracing digital innovation, charity fundraisers can pave the way for a successful future in prize-led fundraising.
At the end of the day, it comes down to three things: stay in touch with your supporters, show them the difference they're making, and keep your marketing focused on what actually works.
Do that consistently, and you'll build the kind of long-term support your charity needs to thrive.
A well-executed charity marketing strategy doesn't just boost donations – it builds a community of engaged supporters who become partners in your mission.
Partner With Us to Achieve More
The future for prize-led fundraising is set to be exciting with new opportunities appearing all the time. To truly take advantage of these opportunities you need a partner who is staying ahead of the curve, with an eye on compliance and on your long term success to help you navigate the future, develop and grow. That's why now is the right time to migrate your weekly lottery and raffle programmes to Woods Valldata.
Our teams of prize-led experts will be with you every step of the way as your partners in possibility, offering marketing strategy services and expertise that enable your organisation to thrive.
Sound like something you might like to find out more about? Drop us a line, we'd love to talk through how our people and processes, technical capabilities and breadth of expertise in house means the service you get is the best it can be.
