A thorough explanation of the product logic behind the lucky draw

I just recently completed a lottery project, and after launching it online I found that the effect was quite good, so I’d like to share it with you today.

After reading the full text, I believe you will also be able to stand in a God’s perspective and thoroughly understand the logic behind the lottery.

Among many marketing methods, sweepstakes, as one of the most common operating methods, are widely used in attracting new customers, promoting activation, acquiring customers, and increasing growth.

Whether it is offline store promotions or online activities, we can often see major businesses holding such activities. Although the gameplay seems old-fashioned, people who have participated in it know that the probability of winning in such activities is generally very low.

Because people always think that they are the luckiest one. Even if there is only a small chance, people are willing to take a small risk for a big gain and give up the safe medium reward. Therefore, businesses often take advantage of people's curiosity about the unknown and their desire to take chances, and attract users to participate by setting up high possible rewards.

In addition, merchants can control not only people’s behavior but also the budget by adjusting the probability of winning each prize.

Therefore, lottery activities can always attract many users to participate, relying on the leverage effect of small wins for big gains, low threshold to participate, and high reward temptation. Merchants and customers are even more happy to do it.

So, what goes into creating a sweepstakes?

When creating a sweepstakes, there are a few questions you should ask: What are the rules? What are the prizes? What to show to the user? What are the risks and how to control them?

01. Lottery Rules

When creating a new lottery event, the basic information of a lottery event includes: event name, event validity period, event type, and number of participants. Basic information is also necessary information for the event.

Activity name: First of all, the activity name should be given. If there are multiple activities going on at the same time, the activity name is the condition to distinguish the uniqueness of the activity.

Activity validity period: Any activity will have a validity period. The start time and end time of the activity need to be set separately, and the end time must be greater than the start time. As for the choice of end time, it can be specific to days/hours/minutes/seconds based on actual conditions.

Activity type: General lottery activity types include big turntable, nine-square grid, golden egg smashing, gashapon, etc. Each activity type has different operational focuses. When creating a new activity, you need to choose according to the operational purpose and the characteristics of each type of activity.

Total number of participants: The total number of participants refers to the number of times a user can participate in the lottery. Why do we need to set an upper limit on the number of participants here? Is it possible to not set an upper limit? The answer is: No, because without an upper limit, the probability of winning cannot be calculated. Without a participation upper limit, the probability of winning approaches zero, which may result in all users being unable to win.

In response to personalized needs when creating activities, you can add some non-mandatory advanced settings, such as: participation threshold, number of participations per person, number of wins per person, applicable groups, etc.

Participation threshold: The participation threshold can be set as unlimited participation threshold or restricted participation threshold according to the characteristics of the activity. When the participation threshold is restricted, it can support setting conditions such as consuming points and paying.

Number of participations per person per day: Taking into account that the prize may be drawn by the same person multiple times, which greatly reduces the chances of other participants winning the prize, the upper limit of each person's participation per day can be controlled based on the fair distribution of reward opportunities. Once a user exceeds the limit on a given day, he or she will no longer be able to participate in the lottery.

Number of winnings per person: If the number is not large, it is easy to have an embarrassing situation where everyone rushes to win in the early stage but loses in the later stage. Therefore, the rhythm of awarding prizes must be controlled more steadily. In order to avoid the problem of "prizes being drawn out within a few days", we need to set the number of prizes available each day. When the number of prizes reaches the set threshold, no more prizes of this type will be distributed.

02. Page display settings

The background image, header image, turntable image, pointer image, and base image in the lottery event all need to be customized. Because the image position is fixed, we just need to set the upload point in the background and define the size and size of the uploaded image.

In addition, regarding the display of the page, in order to make the event creation more personalized, we can also add advanced settings (non-mandatory items), such as whether to turn on/off the number of people who have participated in the lottery, the countdown to the end of the event, the winning information revolving lantern, the winning virtual list, etc.

03. Prize Setting

When setting up prizes, each item needs to set the prize type, prize name, quantity, etc. If it is a physical prize, the redemption validity period also needs to be set (because if the physical product is valid for a long time, if the user has not redeemed it, it will occupy the inventory for a long time).

Because the prize information is fixed, and the number of prize types is also fixed, we can fix the prize location and set the prize information by switching buttons.

04. Risk control settings

In order to facilitate the monitoring of lottery activities, we can increase the control warning threshold to avoid activity risks.

For example, you can enable a prize warning for a lucky draw. When the prizes are exhausted, you can set a threshold for the prize exhaustion reminder to facilitate monitoring of the number of prizes. When the number of prizes triggers the threshold, managers can be reminded via email.

In order to facilitate the control of the sustainability of interaction, a daily upper limit for prize distribution is set. When the upper limit is reached, no more prizes will be distributed.

In order to prevent a single user from winning too many prizes, the number of times a single user wins can be controlled to balance the number of times a user draws.

For users who engage in fake ordering, we can add such users to the blacklist, and users added to the blacklist will not be able to participate in the lucky draw.

Author: Qing Feng

Source: Qingfeng