What Is Incentive Marketing?
While marketing experts will immediately know what this term stands for, people working in other areas are unlikely to be as familiar with it. However, incentivization is relevant across the board; not just the marketing department!
Incentive marketing is about using rewards to create further enticement. It can be used in various ways: as an incentive to buy a product, as a means of motivating staff, or simply as a way of expressing your gratitude. Incentives help you show your appreciation to different groups of people. And their effects are invariably positive. Staff incentives strengthen employee motivation and loyalty, and purchase incentives create loyal customers and lead to more recommendations.
But what sorts of products make appropriate rewards, and what incentives are my customers, my staff, or my business partners interested in? Of course, these questions don't have a "one-prize-fits-all" answer. The ideal incentive depends on the intended outcome and target group. However, there are some classic rewards that can be used for a wide range of purposes.
Gift cards, rewards, and incentive events, for example, are among the better--known incentive types.
Universal vouchers are especially common, as these can appeal to heterogeneous and even anonymous target groups. Their main benefit is that they allow the voucher recipient to decide how it's used.
Rewards also make effective incentives. A good example of this is the long-standing, highly successful PAYBACK customer loyalty program, through which customers can redeem their collected points for rewards. With competition on the market becoming increasingly intense, companies need to invest more effort in setting themselves apart from the competition and in convincing customers of their qualities. The concept of collecting points in order to later exchange these for a reward serves as an additional incentive for customers, and can prove decisive in helping them choose where to make their purchases.
Incentive events and travel offers are forms of incentivization that recipients respond positively to; they are therefore particularly effective. They are versatile in terms of where they can be used and how they can be structured, and make excellent rewards, competition prizes, or staff events.
Digital solutions for providing and distributing rewards round out the range of services available through incentive marketing.
Bonuses are a great basis for distinguishing yourself from your competitors, and can be strengthened through digital solutions such as rewards programs or advantage clubs.
Rewards programs can be used to digitally implement all sorts of incentivization concepts, including customer referral programs, training courses, and competitions at the point of sale. They offer your customers, employees or partners a fun and interactive way of collecting points and then exchanging them for rewards. To ensure their success, bonus programs need to be implemented together with creative campaigns, a sophisticated game-style approach, and an attractive range of rewards. Only in this way will participants’ interest, motivation, and engagement continually increase.
Advantage clubs are another proven means of promoting customer loyalty. With them, you can offer your employees and customers access to attractive discounts and exclusive offers from well-known brands. This in turn will give you the advantage over the competition regarding your customers’ final purchase decisions.
Are you looking for an incentive solution tailor fitted to your project? We would be more than happy to advise you! Our experts are sure to find an incentive concept ideally suited to your needs. To contact us, please use our contact form or give us a call!