Have you ever heard about incentive marketing? If you are running a business, especially in the online sphere, it might be something that really boosts your income and ensures the company’s growth. Learn how to engage, encourage, and interest potential and regular customers to make use of your services or buy products in the offer.
What is incentive marketing?
Incentive marketing is exactly what the name suggests. Its role is to incentivize customers, those regular as well as the potential ones, to buy a product or make use of a service. What matters is the way it does that. The methods used by incentive marketing include all sorts of competition and games, in which people can win attractive prizes, but also various bonuses, special prices and discounts that encourage the users. In simple words, it’s giving something in return for the desired actions. If you have never heard of incentive marketing, you might be surprised that it’s a big part of marketing in general, all around the world. More than 80% of the business in the US itself spend millions of dollars on this type of encouraging customers, as claims institutions such as Incentive Marketing Association.
Way of encouraging customers
There is a great variety of methods to engage customers and attract them with your offer. Some of them are highly popular and used by the majority of businesses online, while others are more related to a specific industry or branch and, as such, less typical. Here are the examples out of both of these groups.
Loyalty and referral programs
A great part of online stores allow their customers to join loyalty programs. If you considered creating one yourself, here are the main advantages of such a solution. Loyalty programs appeal to people by giving them a chance to win something. It might a free product, discounts or material prizes. In order to get them, your customers need to collect points or whatever you decide they should gather. Every point is a reward for some valuable (from your perspective) action. This means that, usually, a customer needs to buy your product or use your service a dozen or more times before they win the prize. As a result, it generates income that covers the cost of prizes, and you earn the rest. There are other advantages of loyalty programs, one of them being increased brand awareness and traffic to the website. In other words, it makes the business more popular among the customers.
Referral programs are potentially more attractive to the customers. Mostly because they don’t have to do much, and their actions are not expanded in time. It doesn’t take them weeks or even months to win something. Referral programs reward them simply for recommending the offer to other consumers.
Bonuses and prizes
Your customers will certainly be encouraged by the prizes and bonuses you might offer them. They are part of incentive marketing, too. Prizes might include some material things, like the products you offer that are granted for some actions, or simply giving free stuff on the condition that a customer spends enough money while shopping. Additional bonuses can have various forms, e.g., online casinos offer bonuses for new players, but also for the regular ones in exchange for different activities. There are welcome bonuses, deposits, no deposit ones, and many more. Players are encouraged to bet, play and win money. It’s a beneficial situation both for the casinos and the players, as it brings profit to all – of course, if the player is lucky to win in these, after all, games of chance. The type of bonus or a prize depends on the branch you operate in and the preferences of your customers.
There are other types of incentive marketing that you might use in your business to increase profits and keep your company on the right track. It’s natural that people are more eager to make use of services or buy products that reward them for making a purchase. Who wouldn’t like to get something for free, especially if it’s from the brand they appreciate? If you haven’t invested in incentive marketing yet, now is the best time to try.