Scratch Off Promotion Tips | Promo Printing Group

05/23/2020

10 Things You Need to Know Before Running a Scratch Off Promotion

A scratch off promotion looks simple from the customer’s perspective:

Receive a card. Scratch it. Reveal a prize.

Behind the scenes, however, a successful promotional scratch-off campaign requires considerably more planning.

You need to determine the objective, prize structure, distribution method, eligibility requirements, redemption process, official rules, card quantities, tracking, artwork, and production requirements before the first card is printed.

And if your promotion involves prizes awarded by chance, there may also be important legal and regulatory considerations.

That’s why planning should begin before you design the scratch-off card.

Whether you’re considering a retail promotion, restaurant campaign, direct-mail program, grand opening, customer appreciation event, trade show giveaway, or another prize-based promotion, here are 10 things you should know before getting started.

1. Understand the Difference Between a Promotional Scratch Off and a Lottery

Promotional scratch-off cards may look similar to lottery scratch tickets, but they should not automatically be treated as the same thing.

One of the fundamental legal concepts associated with lotteries is the combination of three elements:

Prize + Chance + Consideration

A prize is something of value that can be won.

Chance means the winner or prize is determined at least partly by chance.

Consideration generally refers to something of value participants must provide in order to enter or participate, although the legal definition and application can vary.

When all three elements are present, a promotion may potentially be considered a lottery—and private lotteries are generally heavily regulated or prohibited.

That’s why many consumer sweepstakes and chance-based promotions are structured to remove the consideration element, often through a free method of entry.

Important: Promotional laws vary by jurisdiction and campaign structure. Before launching a public prize promotion, have the specific promotion reviewed by qualified legal counsel.

2. “No Purchase Necessary” Can Be Extremely Important

You’ve probably seen these words countless times:

NO PURCHASE NECESSARY.

They’re there for a reason.

For many chance-based consumer promotions, sponsors provide a way for eligible participants to enter without making a purchase.

This is often referred to as an Alternative Method of Entry, or AMOE.

The objective is to provide a legitimate free method of participation rather than requiring a purchase as the only path to receiving a chance to win.

The exact requirements can depend on how the promotion is structured and where it is offered.

Don’t simply copy “No Purchase Necessary” onto your card and assume the promotion is compliant.

The method of entry needs to be properly incorporated into the promotion and its official rules.

3. Some Promotions May Require Registration, Bonding or Other Filings

Prize promotions aren’t governed by one simple nationwide rule.

Depending on the promotion, relevant factors can include:

Where the promotion is offered
Total prize value
Type of promotion
Method of entry
Industry
Eligibility requirements
Promotion duration
How winners are selected
How prizes are awarded

Certain jurisdictions may impose registration, bonding, filing, disclosure, or other requirements on particular sweepstakes or promotional games.

And requirements can change.

For that reason, don’t rely on an old blog post—or even another company’s promotion—to determine whether yours needs to be registered.

Review the current requirements that apply to your specific promotion before launch.

4. Create the Official Rules Before You Print the Cards

For public sweepstakes, contests, and promotional games, official rules can be one of the most important parts of the campaign.

Think of the rules as the framework governing the promotion.

Depending on the campaign, they may address questions such as:

Who is eligible?
When does the promotion begin?
When does it end?
How can someone participate?
Is there a free method of entry?
What prizes are available?
What is the approximate retail value of the prizes?
How are prizes awarded?
What are the odds or how are they determined?
How are winners validated?
What happens with damaged or illegible game pieces?
What happens if a prize isn’t claimed?
Are there geographic restrictions?
Who is responsible for applicable taxes?
What happens if an error occurs?
How can participants obtain the complete rules?

Your rules and printed cards need to agree.

That’s why the rules should be developed before production, rather than trying to make the legal framework fit cards that have already been printed.

5. Decide Exactly How Many Prizes Will Be Available

Prize planning is one of the biggest advantages of a professionally produced scratch-off campaign.

You can determine your prize structure before production.

For example, a 10,000-card promotion might be structured with several different prize levels:

5,000 cards: 10% OFF
3,000 cards: 20% OFF
1,500 cards: FREE ITEM
450 cards: $25 GIFT CARD
50 cards: PREMIUM PRIZE

Those numbers are only an illustration.

Your actual prize quantities should be developed around your campaign objectives, budget, promotion rules, and applicable requirements.

The important point is that you know before printing how many cards of each version should exist.

This helps establish your maximum promotional exposure and makes production easier to control.

6. Determine What Happens to Unclaimed Prizes

What happens if someone receives a winning card but never redeems it?

The answer shouldn’t be decided after the promotion ends.

Different promotion structures may require different treatment of unclaimed prizes, and certain prizes or promotional structures may carry specific requirements.

Your official rules should clearly explain the applicable conditions.

From a budgeting perspective, it’s also wise to plan conservatively.

If your promotion advertises a certain number of prizes, make sure you’re financially and operationally prepared for the possibility that all required prizes will need to be awarded.

7. Plan for Printing Errors, Damaged Cards and Invalid Claims

Professional production dramatically reduces the likelihood of errors, but a good promotional plan still anticipates what happens if something goes wrong.

For example:

What happens if a printing or production error appears to create more winning pieces than intended?

What happens if someone presents a damaged card?

What happens if a winning card has been altered?

What happens if a code can’t be validated?

What happens if duplicate claims are submitted?

Official rules commonly contain provisions addressing printing, production, typographical, mechanical, or other errors and explaining how affected prize claims will be handled.

The exact language should be appropriate for your promotion and reviewed as part of the rules.

This is also one reason to work with a printer experienced in promotional scratch-off production, particularly when the campaign contains multiple prize levels or high-value prizes.

8. Think About Security and Prize Validation Before Distribution

The higher the value of the prizes, the more important validation becomes.

A simple 10%-off retail card may not require the same controls as a promotion containing $1,000 prizes.

Depending on the campaign, useful controls might include:

Sequential numbering
Unique identification numbers
Redemption codes
QR codes
Prize-version identification
Redemption logs
Location-specific codes
Internal tracking systems

The goal isn’t to make redemption difficult for legitimate winners.

It’s to make the campaign manageable for the sponsor.

Ask yourself:

“If someone presents a winning card, how will our staff know it’s valid?”

Answer that question before distribution begins.

9. Design the Promotion Around the Desired Customer Action

The scratch-off area creates curiosity.

But curiosity alone isn’t the business objective.

Ask:

What do we want the customer to do after scratching?

Visit a store?

Make another purchase?

Scan a QR code?

Book an appointment?

Visit a website?

Attend an event?

Contact a salesperson?

The prize and call to action should support that objective.

For example, a restaurant trying to increase repeat visits might reveal:

FREE APPETIZER ON YOUR NEXT VISIT

A retailer might reveal:

20% OFF — REDEEM BY SEPTEMBER 30

A trade show exhibitor might reveal:

YOU WON! BRING THIS CARD TO BOOTH 417

The customer’s next step should be obvious.

10. Choose a Scratch Off Printer That Understands Promotional Games

Scratch-off printing isn’t simply ordinary printing with a silver circle added at the end.

Depending on the campaign, production may involve:

Multiple prize versions
Controlled quantities
Variable information
Concealed data
Scratch-off registration
Unique codes
Numbering
QR codes
Direct-mail requirements
Version identification
Packing and distribution requirements

If the campaign has 10 prize levels, for example, the printer needs to understand exactly how many cards of each prize version are required and how the finished pieces should be handled.

For multi-location campaigns, there may be another layer of complexity.

Different stores might require different:

Offers
Addresses
QR codes
Prize quantities
Redemption instructions
Expiration dates

A printer experienced in scratch-off promotions can help identify production issues before they become expensive problems.

Bonus: Don’t Forget to Train Your Employees

This isn’t technically part of the printing process, but it can make or break a promotion.

Before customers receive their first card, participating employees should know:

How cards are distributed
Who is eligible
When cards can be redeemed
How prizes are validated
What identification is required, if any
What to do with redeemed cards
What happens if there’s a dispute
Where customers can find the official rules
Who employees should contact with questions

Imagine spending thousands of dollars developing a great promotion only to have a customer arrive with a winning card and hear:

“I don’t know anything about this.”

Internal communication should be part of the launch plan.

Are Scratch Off Promotions Effective?

Scratch-off promotions have one fundamental advantage over many ordinary printed offers:

They require interaction.

The customer doesn’t simply read the card.

They hold it.

Scratch it.

Reveal it.

And discover what’s underneath.

That doesn’t guarantee a successful campaign. No marketing format does.

Performance still depends on factors such as:

Audience
Offer
Prize value
Distribution
Design
Timing
Redemption process
Call to action
Campaign objective

But when those elements are aligned, scratch-off printing gives marketers something traditional coupons don’t naturally provide:

Built-in curiosity.

What Types of Businesses Can Use Scratch Off Promotions?

Scratch-off campaigns can be adapted to many industries and objectives.

Retail

Use scratch cards for grand openings, holiday promotions, customer appreciation, product launches, and return-visit campaigns.

Restaurants

Reveal free appetizers, desserts, beverages, percentage discounts, BOGO offers, or other incentives.

Automotive

Dealers and service centers can use scratch-off promotions for service offers, accessories, customer appreciation, and dealership events.

Trade Shows

Give attendees a reason to stop at your booth with an interactive Scratch & Win promotion.

Direct Mail

Combine personalized postcards, scratch-off areas, QR codes, unique offers, and expiration dates into a response-oriented mail campaign.

Fundraising

Schools, teams, churches, nonprofits, and community groups can use specially designed scratch cards for fundraising programs.

Employee Incentives

Companies can use scratch cards to recognize sales performance, training, productivity, customer service, and other accomplishments.

Workplace Safety Recognition

Properly structured scratch-off programs can also recognize positive safety participation, training, hazard identification, and other proactive safety behaviors.

Scratch Off Promotion Planning Checklist

Before sending your cards to production, make sure you’ve addressed the major components of the campaign:

Plan First. Print Second. Promote With Confidence.

Scratch-off promotions can look deceptively simple.

The customer sees a card and scratches a concealed area.

But a professionally planned campaign considers everything that happens before and after that scratch.

Who receives the card?

What can they win?

How many prizes exist?

How do they enter?

How is the prize validated?

When does it expire?

What happens if something goes wrong?

What action should the customer take next?

Answer those questions before production, and you’ll be in a much better position to create a promotion that’s exciting for customers and manageable for your organization.

Need Help Planning Your Scratch Off Promotion?

Promo Printing Group specializes in custom scratch-off cards, scratch-off postcards, variable prize promotions, direct-mail scratch-offs, employee incentive cards, fundraising cards, trade show promotions, No-Peeking® promotions, Peel & Win® promotions, and other interactive promotional products.

We can help you understand the printing and production options available for your campaign, including card formats, prize versions, quantities, artwork, scratch-off configurations, numbering, codes, and distribution considerations.

For promotions involving sweepstakes, contests, games of chance, or other regulated promotional structures, we also recommend consulting qualified legal counsel regarding the laws and requirements applicable to your specific campaign.

Call Promo Printing Group at 813-831-9902 to discuss your scratch-off promotion or request samples.

This article provides general educational information and is not legal advice. Laws and regulations governing sweepstakes, contests, lotteries, and promotional games can vary by jurisdiction and change over time. Consult qualified legal counsel regarding your specific promotion.

Promo Printing Group, Inc.