Why do companies offer a million-dollar prize for making a half-court shot, or the chance to win a $500,000 dream home in an online game? They are aiming to increase sales and build mindshare with the lure of big cash prizes. For a fixed fee, promotional risk management allows marketers to leverage their budgets and offer large cash prizes, proven to motivate and incentivize customers.
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“The chance to win is the number one most effective tool to motivate consumers to participate in permission-based marketing efforts.”