Incentivized marketing is a form of marketing that, as the name implies, uses incentives or rewards to increase sales. It is a form of marketing that has proven effective in both small and large businesses. An incentive program may be a gift card, incentive entry, or reward points. The purpose of an incentive program is to use incentives to encourage a customer to buy, rather than telling them to buy.
While motivation is important in all forms of marketing, particularly sales, incentivized marketing encourages a buyer to make a purchase even if they are not currently planning to buy. If an incentive is tied to an actual sale, the incentive can help propel a transaction to occur.
Each marketer's objective in using incentives to encourage a purchase is to improve a business' bottom line. And because many incentive programs allow the marketer to accumulate points for every sale or buy they make, this type of marketing is used in multiple venues in order to maximize sales, including television commercials, magazines, radio, newspapers, and the Internet.
There are many factors to consider when evaluating an incentive program. Factors to consider are the type of incentive being offered, how the incentive is used, and how well the marketer has understood their target demographic. Different incentive marketing strategies can be used depending on the individual goal of the program.
Once a marketer identifies their customers, they can determine which incentives will be most effective in driving sales. Incentive marketing strategies may include:
Incentive programs can be used to boost customer loyalty, persuade customers to try a product before buying, entice repeat customers, and get customers to buy from a specific source. For example, several markets offer reward points that can be accumulated for every purchase made with the product and sent to a specific address.
While reward points offer multiple benefits, such as no sales tax, loyalty programs allow customers to obtain a reward that they can use at the store. It also allows the customer to save money by having a specified percentage of the total purchase value deducted from the gift card.
While reward programs have been used in previous years as incentives, the incentives are now sent by electronic mail. This creates a more appealing message and provides a simple way for a marketer to tell the customer to "check your email."
Businesses that do not use these types of incentive programs have experienced problems with repeat purchases. When a marketer offers a reward for buying a certain number of things, it is difficult to reach the right mix of consumers.
To create loyalty rewards, some incentive marketing company use products or services that are very common and have a clear demographic. Incentive programs for these products are not only popular, but they have proven to be successful in helping the marketer to create sales.
Incentive programs that have achieved great success in the past year or so involve rewards for all types of purchases, including buying from a specific location, buying with a credit card, and buy-one-get-one-free items. Rewards are also being used for new or used vehicles, groceries, clothing, and the like.
Whether an incentive program is being used for business or for customer loyalty, the sales team needs to understand the various incentive programs that are available to them. It is important to recognize the benefits that the different programs have to offer and set realistic goals for them, as well as offering the incentive to test drive.