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Cash Converters show that cash prizes can boost consumer engagement, but may offer diminishing returns
Cash Converters UK’s cash prize giveaways on Facebook shows that incentives can be a good way for brands to immediately boost and encourage consumer engagement on Facebook – however, such social media strategies may lead to diminishing social media returns in the long-term.
Cash Converters UK, a high street pawnbroker, has recently been offering consumers the chance to win cash prizes for interacting with the brand’s Facebook page. Whether it be asking consumers to like the page and post predictions around sporting events or to comment how they would spend any prize money whilst also tagging three friends on the brands wall to win money, Cash Converters has continually incentivised consumers to interact with their page in 2012.
WaveMetrix social media analysis shows that Cash Converters UK’s cash prizes boost engagement on the brand’s Facebook wall, with both comments and likes increasing in response to the posts. However, whilst these posts receive much attention, other posts continue to drive comparatively low levels of engagement, with the cash prize strategy also becoming less effective moving through July – suggesting that whilst cash incentives can drive consumers to interact with a page, such strategies may be subject to diminishing returns in the long-term. Moreover, unsustained spikes in discussion suggest the initial engagement with them is of low value to generating meaningful engagement.
Consumer interaction increases significantly around posts offering cash prizes, with the posts driving more comments and likes than other posts:
- Consumers engage significantly more with Cash Converters cash prize giveaway posts than other content on the brand’s Facebook page: Prompted to comment to win the cash prizes, consumers engage much more with Cash Converter’s posts offering prize money, suggesting they can be a good way to boost consumer engagement
- However, engagement with other posts remains comparatively low, with engagement also decreasing over July with Cash Converter’s cash giveaways: Whilst Cash Converter’s cash giveaway posts generate significant discussion, non-cash prize posts remain comparatively less engaging, with little of the discussion transferring to Cash Converter’s other content – moreover, consumer responses to the cash prize posts decreases moving through July, suggesting they may be subject to diminishing return