What is an incentive marketing company? The Incentive Marketing Association defines it this way, "A powerful marketing practice that rewards clients for performance". To explain the strategy, the Incentive Marketing Association utilizes very simple terms. It's a structured system to have individuals do what you wish them to do. It bases its strength on an important psychological equation, which states that in a community where people have enough motivation and power, there tends to be measurable performance, even if that performance is not always optimal.
Motivation is often called the driving force that drives a person to make a decision. This is true for incentives, too. In incentive marketing, the rewards are the vehicle that gets individuals to take the necessary steps to accomplish their goals. They come in many forms-cash, gifts, or freebies. But the underlying principle is that by offering rewards, an individual gets the feeling of increased self-worth.
How do you set up your incentive marketing program? When planning a campaign, you need to think about your target audience. If you are offering corporate gifts to your top customers and associates, then your incentives program will generally be a multi-channel affair. The easiest way to approach your multi-channel program is to organize your rewards programs into separate channels for different segments of your customer base.
For example, one segment might be rewarded with a coupon for two or three percentage points off a purchase. Another segment might be offered a rebate off their first purchase. Your loyalty programs could be divided into segments such as "First Time Buyers", "Issues and Classics" or "Very Rewards". The customer segments you choose will depend on your target market. The trick is to reward the right customers with the right incentive marketing strategy.
Once you have your incentive marketing program established, it is important to gain leads. Lead generation is the process of gathering information that will ultimately be used to make sales. One way to gain leads is to advertise through your existing customer database. Your customers can also help you gain leads by providing you with referrals. Clients who refer new clients to you will have a vested interest in helping you grow your business. Incentive marketing incentives, like customer loyalty programs, are effective lead generators.
You must be careful about how you use your incentive marketing incentives. One way you can use incentives to gain leads is to tie them in with your core marketing strategy. For example, if you want to increase your sales for the quarter, offer a twenty percent discount to your regular customers. Clients are more likely to buy from you if they perceive value in your products or services. The same is true for any type of marketing incentive program-if people don't feel that they are getting value for their money, they will most likely not purchase from you.
Another great way to use incentive marketing to increase your sales is to ask people for referrals. You can do this by offering special discounts or freebies to people who bring you, new clients. You can also offer non-monetary rewards for referrals such as discounts on services or on the purchase of a new client. Both of these strategies will have the added benefit of motivation because you are essentially encouraging your customers to spread the word about your incentive marketing company.
Incentive marketing programs have been successfully used by many successful companies to increase their profit margins. If you want to increase your profit margin, you should consider using incentive marketing programs along with your core incentive programs. If you choose not to use them, you could be missing out on an excellent opportunity to increase your revenue. Start off with some of the tips above and watch as your bottom line begins to grow.