Now is the time to embrace change and optimize strategies 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. This blog post delves into 5 key considerations for charity fundraisers as they navigate the future of prize-led fundraising.
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.
1. Using data and insights
Understanding your players' profiles and acquisition sources is crucial for shaping your prize-led fundraising strategies. Analyzing data and gaining insights into your supporters' motivations and preferences will help tailor your messaging and creative approaches effectively.
2. Strategise with a focus on life-time value
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 optimizing your stewardship efforts.
3. Explore different channels
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.
- new digital platforms and initiatives (whether social media or ways to play)
We advocate testing new methods, but at the same time, it's important to be mindful of traditional channels too which remain effective in acquiring and retaining raffle and weekly lottery players.
4. Review your prize portfolio
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
The future of prize-led fundraising is intertwined with digital advancements. While digital and online channels offer exciting possibilities, it is essential to balance innovation with existing successful approaches, such as direct mail campaigns for raffles and face-to-face acquisition for weekly lottery.
Engaging directly with lottery supporters, nurturing relationships, and exploring alternative acquisition methods can foster growth and diversify fundraising portfolios, but while you're testing different channels it's important to balance spend between the new and the known accordingly.
Case study: Macmillan lottery
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.
To conclude: 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. Ultimately, it is the commitment to engage with supporters and demonstrate the impact of their contributions that will drive sustained support for your causes.
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.
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.
