For Kothari Jewellers, lucky draws linking a reward to every sale bring revenue growth and new customers

Retailer devises a successful strategy to increase customer engagement and create a sense of urgency, motivating customers to buy now than later

On June 11, Kothari Jewellers of Jabalpur concluded a 22-week lucky draw activity with a bumper draw, giving away a Maruti Brezza as the first prize, a gold chain as the second prize and a Suzuki Access bike as the third prize to the winners. The winner of the bumper draw – who had bought a pair of earrings costing Rs 1 lakh during Diwali – thought he was receiving a prank call when informed about the prize. Later, he came to the store and distributed sweets to the staff.

For the jewellery retailer, conducting weekly lucky draws and linking the prospect of an additional reward to every sale conducted in its store has been a successful strategy to increase customer engagement and differentiate itself from its competition.

LINKED TO BENEFIT

Every week from Diwali 2022 to March 2023, Kothari Jewellers conducted a lucky draw for its customers, giving away a diamond ring as the first prize, a gold ring as the second prize, a refrigerator as the third prize, a washing machine as a fourth prize, a mobile phone as a fifth prize and so on – a total of 30 prizes awards each week. Every Rs 10,000 worth of jewellery purchase merited one coupon. Therefore, customers get ten coupons if they buy jewellery worth Rs 1 lakh. Every week, the retailer gave out around 2,000 coupons from which the lucky winners were chosen. All the coupons given out across 22 weeks since Diwali were included in the bumper draw.

“Customers had something additional to gain from each purchase, so they chose to buy from Kothari Jewellers. Whatever the price of the jewellery, it became more attractive to the buyer. This increased our sales significantly. The best part about the lucky draw activity was that many new customers came to us,” says Vardhman Kothari, Director of Kothari Jewellers, who believes that though the scheme has ended, it will stay in people’s minds.

However, though Kothari strongly feels that retailers should keep doing some activity or the other to attract customers, he is vehemently opposed to offering discounts or low labour charges, which he calls “cheap marketing”.

ACTUAL SALES GROWTH

The retailer had started the lucky draw scheme before COVID and resumed it Post-COVID. “The response has been good, and we saw a 25-30% growth in sales compared to the pre-COVID draw. It is a 10% growth this year compared to last year,” says Kothari. 

The first time Kothari Jewellers got into the lucky draw activity was in 2014, with monthly lucky draws, giving away a Maruti Alto car and other prizes each month, and a duplex flat as a bumper prize.

Retail Jeweller India Exclusive