What is incentivized marketing? It is the systematic approach of providing incentives to consumers for certain actions, which may include but are not limited to, purchasing products, making a purchase or opting for a service. The term incentive marketing has several connotations and are also used differently depending on the context in which it is applied.
It is in the public sphere that the marketing effect is most clearly demonstrated. For example, an incentive for opting for a movie ticket means that the consumer will be satisfied with the information and entertainment that will be provided to him/her during the movie. However, it is not unusual for some companies to use the term "incentive" in an indirect manner by equating a certain behavior that is considered to be rewarded with an activity or performance that is not rewarded. The key question here is whether these incentives are intrinsically rewarding or not.
In the public sphere, the concept of incentive marketing will be seen in three major areas: lifestyle companies; product companies; and companies engaged in marketing/advertising. This is where the term incentive marketing is most important and the real essence of the concept lies in the "good feeling" that the consumer gets from the free product or service.
The first area is lifestyle companies. In such a company, the incentive is derived from the service provided. This will include but not limited to, the delivery of cleaning services, a gym membership, a round of golf, etc.
Product companies have taken the concept of incentivized marketing one step further. The idea here is that the company has an exclusive opportunity to market its goods/services for a period of time. Usually, a certain offer, for example, a free cell phone, is added to the product/service to encourage customers to buy it. The company then monitors the sales and decides whether the offer was effective.
A key challenge for companies that engage in the practice of incentive marketing is determining their company's objective. It is extremely difficult to determine the exact amount of the prize or reward for a customer if you do not know how much of a reward the customer would be satisfied with. It is very common for incentive marketing departments to provide a prize of 30% of the purchase price if the customer successfully purchases the product/service.
At the same time, we all know that an effective marketing plan needs a solid and healthy target market, which can be used to find your own audience and reach them. Without such an audience, the chances of customers buying your products are slim and there is no point in spending money on promoting them.
If the concept of incentive marketing is something new to you, it may be a good idea to take a look at online marketing as an alternative. In online marketing, customers will receive their prize via a shopping cart or e-mails from the company.
This reward system is well established and most companies that applying this technique have a considerable amount of success. The reward system ensures that the marketer's objective is met because they will get a number of customers who buy the product/service regardless of the strategy they use to market it.
Another important factor to keep in mind when considering online marketing is the ease with which rewards can be distributed. For example, customers can buy an item through a site and immediately receive their reward which is usually equal to the price of the item.
If you don't want to use a reward system, other tactics, such as discounts, coupons, promos and discounts can be used to attract customers. Customers can be provided with some extra savings through coupons, rebates or special offers.
One last tip for business owners interested in introducing incentive marketing into their company is to offer some sort of compensation to the customer who purchases your product or uses your service. This will ensure that the customers get their reward and that you get more business. rather than you losing sales because the customer didn't buy the product.