Who Cares Wins: Why We Love A Prize Story

Who Cares Wins: Why We Love a Prize Story

KISS – Keep It Simple: Signal

The power of prize programmes is their signalling effect. Done right, the value of the signal that the prize programme sends is many times more valuable than the cost of the prize itself. Our emotional reactions to prizes typically far outweigh our financial responses. We love a prize story.

Jodie and Peter’s Story

When Jodie Graygoose walked into a Plymouth Jobcentre she had no idea what was about to happen. Entrepreneur Peter Kelly approached her and offered her 1% of the equity in his company, Imployable.

After the initial shock,  Jodie gladly accepted the gift, at the time worth a life-changing £30,000. You can see Jodie and Peter’s story in this 5 minute film. But read on afterwards to find out what happened next…

The Emotional Impact of a (Positive) Surprise

After we released the film of Jodie and Peter’s story, local and national media picked it up. So did Imployable’s customers. Peter’s desire to give back to his community and to share his success was a very powerful signal. His charisma and emotional intelligence amazed and delighted people.

Word spread – not so much about what Imployable does, but how it does it. Customers wanted more, and they wanted more companies to be like Imployable, and more of their suppliers to be like Peter.

Even the CFO Loves a Story When Everyone Lives Happily ROI

Within 6 months, Imployable sales had increased by a factor of 10 and the company was raising money at a valuation of £20 million, nearly 7 times the valuation of the round just before Peter’s gift to Jodie.

So in giving £30,000 to Jodie, Peter increased the value of the company by nearly £17,000,000. That’s, um, a 567 times return on investment!

That’s a powerful signal, and that’s why even CFOs should learn to love a prize story!

OK, But Giving Away Equity – That’s Not For Us

No problem. The secret of the power of Peter and Jodie’s story is that neither is in full control. Both share a degree of uncertainty. With a tailored prize programme, most organisations can achieve this kind of emotional engagement with a modest outlay from their sponsorship budget. Get in touch if you would like to discuss what will work best for you.

We challenge you to find a better use of your sponsorship budget!

Exponential Engagement for the Exponential Era

Prize programmes are growing in popularity because they make engaging easy. They welcome the involvement of many more people as referrers, and even as participants. They reveal authenticity and stimulate partnerships. Altogether, this makes for a programme that gives you exponential engagement at budget-friendly cost. It’s time to share your prize story.