You have probably heard of incentivized marketing in general, but are you aware of how it can benefit your business? Incentive marketing is the practice of offering customers a bonus for using a particular product or service. It's a way to get your potential customers to sign up to receive future products and services.
An incentive can be anything, from a free CD with purchase of a product to a discount on a new product, to even a deal that includes an anniversary gift. A product that includes an incentive can include free shipping, special savings or even prizes. An incentive can also be something that customers can take home or give away as a promotional giveaway.
One of the main reasons why companies use incentive marketing is to capture and retain customers. When customers visit a store, they expect to be treated with respect and expect to receive the best deals. This way they will keep coming back and encourage their friends and family to do the same.
There are three key types of incentives work well at turning new customers into long-term customers. These are: Pre-sale incentives, post-sale incentives and prize incentives. Each of these have different benefits.
Pre-sale incentives are those that are offered during the sale. These include special deals on products, special pricing, free gifts and more. Some of these types of incentives are: promotional samples, coupons, contests, gift certificates and more.
Post-sale incentives are one-time promotions that are meant to encourage customers to sign up for future offers. This type of incentive is often given out for a very short period of time. These incentives can be used as part of a loyalty program or in a continuing offer. Examples of these are: discount cards, purchase cards, rebates and more.
Prizes are often given out as incentives, but can also be the reward for a customer who purchases a product or service. Prizes may be giveaways, contests or rewards. Some examples of prizes that are given as incentives are tickets to sporting events, an annual membership, raffle tickets, credit card entries, etc.
The key to using incentivized marketing effectively is to keep the message easy to understand. Make it as much of a benefit to the customer as possible. With the right incentive, your customers will enjoy whatever it is that you are giving them.
If your incentive is limited to one-time use, you should limit the number of incentives you are providing to your customers. Customers should have a clear understanding of what they get when they purchase the product or service. Once a customer has experienced something once, he or she will likely want more of it.
There are two types of incentives that you can offer as a company. These are: Pay-for-Performance incentives and Pay-for-Content incentives. Both offer the same benefits, however Pay-for-Performance incentives are slightly more costly than Pay-for-Content incentives because of the higher quantity of products you must purchase to gain the incentive.
Some examples of Pay-for-Performance incentives are: Post-sale incentives, ongoing incentives and level-up incentives. Some examples of Pay-for-Content incentives are: Blog writing or media buys, monthly newsletters, YouTube videos and more. Depending on your type of business, the type of incentive you choose and the duration of the incentive you choose will help determine the overall cost of the incentive.
Whether your incentive is small, medium or large, ensure that your incentive is worth your customer's time and effort. You want to make sure that your customers will remember your company long after the incentive has expired.
