Incentive Marketing

March 29, 2018

Incentive marketing is defined by Business Dictionary as the use of motivational devices such as competitions, games, premiums, or special pricing to promote the sale of a merchandise or service. The many forms you can use are nearly endless, but the goal remains constant: to build customer loyalty. Here at Apex United Corporation, we specialize in software and business solutions to optimize our clients’ needs to build that lasting relationship with your customer base.

It is important for whatever incentive you decide to use links back to your business. Offering a percent off on their next purchase or a no down payment promotion can incentivize customers to purchase in the moment, and not feel bad about doing so. It will also encourage them to purchase more in the future, as well. Simplicity is key when it comes to incentives. Making it as easy as possible to understand is crucial, as most consumers’ attention span is simply not long enough to go through a very complex offer.

Whatever it is you are offering to consumers, it should address any concerns they have. A lot of companies offer the world to the customer with no recourse to back it up. One idea is to offer a safety net to make the consumer feel a little more secure. For example, offer whatever you want, but instead of ending it there, offer a full money back guarantee if the consumer is not satisfied. This way the consumer feels safe, and important as well. With the opportunity to try something, essentially for free, it gives the customer peace of mind.

Any incentives should relate directly to the group of people you are targeting. If your client base has a large chunk of people over the age of 40, you want to accommodate them with a gift, or program that hits home with them. That goes with every demographic group. A group of 20 to 25-year-olds will not have the same interests as 65 and up, therefore having specific campaigns for certain age groups or demographics is completely necessary.

If you want to look on the other side of the spectrum, you can use incentive marketing internally for boosting moral or increasing production. Offering a bonus of some sort to an employee if they hit a benchmark is commonplace in today’s workplaces. In sales if you sell a certain amount your commission rate may go up, or you will get a gift for being with the same company for a certain amount of years. If you want to set up a campaign where the employees increase efficiency in a certain period, offering them some sort of incentive is the perfect way to accomplish that goal. Whether that be money, extra time off, or something else completely different is the company’s choice. However, people always work harder when there is something on the line, and nothing motivates more than something of value.

Upon final analysis, it is important to be very strategic in which ways you move forward with incentive marketing. Remember to relate to your audience and make them feel secure and welcome. Giving them peace of mind is the best thing you can do, thus building that foundation of trust you need. It is a very simple and easy way to build customer loyalty and brand awareness, but if done incorrectly, it could portray a bad image on your company resulting in declining sales numbers and less returning business.