Incentive marketing is a specific strategy to persuade people to do what you want them to do by giving them something, an incentive, in exchange for achieving a goal. Often these people are your clients and clients. Incentive marketing is your way of remaining loyal customers and clients to you, your brand, business or services. Incentive marketing is also used to get rid of inventory or to boost slow-moving products. However, incentive marketing is an effective tool to increase your sales.
To set up an incentive marketing strategy, you must first define your objective or goal, answering “why you should.” A very common incentive marketing goal is to increase the sale of your product. However, to make sure of this, you need to have a good understanding of the behavior of your target customers and clients. We say “target” because you can never have one incentive marketing strategy that applies to everyone. “A glove made for everyone, no one fits.” Also, your target market should be able to achieve your goal, otherwise it is useless to have such a program and spend your time and money formulating it.
Now define your budget. There are incentive marketing programs that do not require you to spend cash since you only have to reduce the price of your product or the cost of your service. But regardless of the type of incentive marketing you use, it’s just as important to make sure you know how much you can afford. In the end, if you were able to define your budget, you will know how much you have earned.
There are other important factors to consider when executing your incentive marketing strategy. These include promotion, program length and time, reward, and geographic limits.
In promotion, your clients must have the knowledge of what your incentive marketing is all about. You can send it via email, newsletter, monthly flyers, brochures, posters, and other marketing paraphernalia that will effectively inform your customers of the incentive you offer. There is a budget involved here. Make sure you’ve figured it out well during your initial planning.
The duration of the program must be well planned. Timing is also crucial. These 2 should go hand in hand and will define whether or not your incentive marketing will work. To know when is the right time to launch this program, carefully study the behavior of your sales during the year. Make a note of the highest point and mark the lowest point. Incentive marketing can usually be implemented during the months when customers buy less of your product or take your services. Bottom line: give them a reason to buy your product or purchase your service when they least need it.
Reward is another important factor that determines the success of your incentive marketing. When choosing merchandise as a reward, consider its usefulness, durability, attractiveness, convenience, and uniqueness. Also choose the type of reward that attracts the most of your customers and clients. Since this is an investment, consider the longevity of the product. Don’t buy too many and stack them in your warehouse. Buy within your budget. Consider the following factors and give it away before the program expires.
The effectiveness of your incentive marketing will continue to depend on the response of your customers and clients, but if you take note of these issues, you will surely increase your chances of achieving your goals and pleasing your customers.
