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If you have ever used or seen a movie where the lead character is rewarded for doing something he normally would not do, that is an example of incentivized marketing. Incentive marketing is a powerful marketing tool and has been used by businesses and marketing firms for years. People love to get "something for nothing" or receive some sort of reward for doing or purchasing something. Studies have shown that this behavior exists in all cultures and is embedded in our brains.
When someone gets a physical (or virtual) reward, our brains typically give a reward signal. This is what makes incentive marketing so effective. Because it is in our DNA, that s why incentive marketing is such a powerful strategy.
How does incentive marketing work? Motivational incentive programs reward program members with discounts or rewards for their continued participation in the program. These programs should be tailored to meet the individual needs of the individual program member. For example, if an adult swim team in a local swimming facility were interested in receiving more time on the water, rather than special swim times or prizes, they could be rewarded with a discount card or a membership to the pool itself. A company that offers health insurance or senior care programs would find that a program membership with discounts on health care products or services would be more appealing to a program member than a time-off program.
An incentive marketing strategy is most effective when designed to build loyalty programs. Loyal customers are much easier to please than customers who have only recently joined a program. Building loyalty with new customers is also a great way to retain repeat business and keep customers coming back. With a customer that is part of your program for a year or longer, they represent a significant amount of potential profit.
The traditional incentive marketing techniques of issuing free items to customers, offering cash or gift certificates, or providing prizes to participants work well when promoting new products or services. However, they don't work as effectively when encouraging customers to stay a part of a program for an extended period of time. Exchanging business cards with interested customers is one way to motivate them to remain a valued participants after they join. However, if you are looking for a more long-term approach, you should consider how your incentive marketing can build your customer base. Here are some suggestions.
Many companies use loyalty programs to encourage repeat business with their customers. Offer them free coffee for every purchase, or provide them with a coupon for a complimentary product. Offering free coffee or other gifts for long-term participation in your incentive marketing strategy has a couple of different benefits. First, the customers have something tangible that they can keep and use, which is far more valuable to them than any free product they might receive.
On top of this, when they make purchases off of your incentivized marketing offer, your company name and logo will be printed on the item. This provides a sense of recognition between you and your loyal customers. Not only will this boost sales, but it also provides another opportunity to communicate with them in a completely different way. After all, the last thing you want is for your loyal customers to think of you only in terms of how your products and services can benefit them.
In most cases, companies that are not using incentive marketing to earn rewards have a difficult time maintaining customer loyalty. They aren't taking full advantage of social media marketing incentives to attract customers, and they aren't consistently communicating with them in an effective manner. When you provide your employees with consistent opportunities to earn rewards for their participation in incentive marketing, you will see a positive impact on overall customer loyalty. As long as you take care to provide your employees with offers that are both valuable and meaningful, you can find great success when applying incentives to your marketing programs.
Starting an incentive marketing program is a great way to get your advertising message out. The idea is to make your target audience aware of your business and the offerings that you are making. Lets look at how you can go about creating an incentive marketing program.
What incentives should you offer? The answer will vary from one company to another. Here are some tips that may help you when deciding which incentives to offer.
How do you think your customers will use your product or service? If they are not going to use your product or service, then they arent going to use anything. So find out what they really want. Do they need more information?
A benefit is an incentive marketing program that provides a benefit. That benefit could be anything. You could even offer them a free gift as an incentive.
Dont feel bad if you dont know how to do this, because in an incentive marketing program, it doesnt need to be free. By offering a free gift, it can put your marketing program in a good light, without you having to spend a lot of money on it.
When you offer a free gift, people want to take advantage of it right away, and they want to buy a new product that you are promoting. Be creative with the offer. Offer a free product and offer a great discount or something else of value in return.
Your incentive marketing should lead your customer to your website, and should not be an afterthought. Customers can see your offer, but most will click through to your web site anyways. So try to get them to do so.
Offering a reward for free is usually a smart move. You cant be surprised if you find someone who was suspicious of you and now wants your product. A reward is normally something that customers like.
A positive experience is an incentive marketing program that offers a favorable experience to your customers. The only reason that you would offer something of value is if you believe it will lead to a sale. Once they use your product or service, they are more likely to buy a second one, and a third, etc.
Even if you know you will have trouble making a sale, you will still need to reward your customers. This is why reward programs are such a good incentive marketing program.
They motivate your customers to buy again, and eventually, they will become loyal customers. Its all about making your customers stay with you and want to see you succeed. Giving them the choice to stay loyal or move on to other companies is a great way to keep them around.
There are many ways that you can build incentive marketing programs into your business plans. Whether its for bringing in new clients, increasing your sales, or helping you generate new business, an incentive marketing program can make all the difference in the world.