

100 BMWs in 100 days? It's a big idea. Dangle the prospect of winning a BMW a day fo three months in front of notoriously luxury German sedan-mad South Africans, charge them R10 an sms, promote it aggressively, and then wait and see what happens.
It's beautifully simple.
Which, for once, is part of the problem. As Rapport reported:
Hordes of Vodacom clients have joined the chorus of complaints following a Rapport article about Hendrikus Wessels who had sent in SMSs totalling R48 000.
One Johannesburg client alleged that he was allowed to send SMSs amounting to R150 000 before his cellphone service was suspended. Marelize Jackson, 39, of Bloemfontein now owes Vodacom about R27 000.
Ideally, promotions should be self-funding, in that the additional revenue they generate, usually through sales or increased product usage, covers the cost of the exercise. The one thing that promotions should not constitute is another revenue stream in their own right - and this is where Vodacom appears to have gone wrong.
Assuming that those 100 BMWs cost Vodacom around R26 million (if they did not get a bulk discount), how much revenue have they raked in through those smses? They would need to receive about 260,000 to break even, but given that people have been sending up to 15,000, it's reasonable to assume that they received many more than that.
Of course, one must factor in the media cost of promoting the 100 BMWs and announcing the winners. Bear in mind that this is money that Vodacom would in all likelihood have spent anyway, since summer is a key retail period and this is where the majority of media spend in the cellular catgeory is concentrated.
So the revenue from those R10 smses is a bonus. Which brings us to the point that this entire competition may well have been illegal:
Cape Town IT, internet and media law specialist Reinhardt Buys said the competition was illegal as the SMS messages encourage multiple entries, and thus contravened the Wireless Application Service Provider Association (Waspa) code of conduct, which regulates cellphone networks.
What sort of fallout can we expect from this debacle?
This is one comment from
hellopeter.com:
AND THE BMW COMPITION THATS A RIP OFF...I WOULD ANY TIME PAY R10000 FOR MY BILL IF I HAVE WIN, BUT I AM NOT PAYING FORSOMETHING IM NOT RECIEVED.
AND NOT TO THE SMSES THEY SEND YOU TO MOTEVATE SO THAT YOU CAN SEND MORE R10
SMSES. THEY HAVE GIVEN LOTS PEOPLE FALSE HOPE,ALL WHAT ARE LEFT WHITH ME AND
OTHERS IS DEBT WE CANT AFORT AND BAD NAMES ON THE CREDIT BERAU.
ALL THAT I CAN SAY NOW AFTER I ALWAYS THAUGHT VODACOM WAS THE LEADING
CELLELAR COMPANY BEFORE THIS COMITION.
Despite the creative spelling, this poster makes a good point. Not only did Vodacom offer a compelling prize, they also encouraged profligate spending by sending their base incessant messages encouraging them to keep entering. The messaging was so annoying that it was the subject of at least one show on 702 last December.
Vodacom has emerged from this situation looking remarkably like the kind of corporation that is only too happy to fleece its customers and lure them into crippling debt. Which - we hope - was not its objective when it came up with the idea in the first place.
So learn from their mistake, and remember that promotions can serve one or more of three purposes:
*Reward existing customers for their loyalty to the brand
*Incentivise 'good' behaviour that translates into more revenue through usage
*Drive trial and acquisition
But one thing that promotions should not be about is - illegally - raising enormous wads of cash for its own sake. We honestly thought Vodacom was better than this.