Everyone loves to be paid, especially for doing something they are going to do anyway. When getting a physical (or maybe digital) reward, our brains release a neurotransmitter called dopamine. That's what makes incentive marketing companies so effective. When you think about it, people who work on commission just seem to have a higher "reward" threshold than the rest of us.
I've seen many examples of incentive marketing in action during my career. In fact, if you hire a consultant and ask him how he could help you achieve more sales, he might tell you that one of the ways to get there is through creative branding. He may say, "You need a different strategy to get a different kind of reaction". This is where the term "branding your business" comes into play.
In incentive marketing, you give your employees or customers some type of reward when they meet a certain percentage of your targets. These rewards could be a dinner or a day off, but whatever it is, it should be something that motivates them. Motivational devices can come in many forms.
Here are some examples:
Digital businesses: Many digital businesses like to offer consumers some sort of "voucher", as they're called. The problem with these types of rewards is that they've already been pre-determined by the online merchant. This means that every time the customer interacts with the merchant, they are seeing the same offer. Incentive marketing strategies that use digital businesses as an example often take a different approach.
Traditional businesses: You might find that you give out reward coupons at a store. Or you might offer your customers a discount at a restaurant. The truth is, incentive marketing isn't always limited to traditional business. There are lots of different types of reward programs that can be tailored to meet the specific needs of your incentive marketing company. This is one of the great things about using incentives to promote new sales.
Loyalty programs: One of the most common types of incentive marketing involves giving rewards to those who purchase a particular product from your company. For example, if you own and operate a Dunkin Donuts franchise, you can offer special discounts to loyal customers, as long as they stay with your organization. These discounts might come in the form of free delivery, free coffee, or a coupon for future purchases. Again, the key is to make sure that your loyal customers have a reason to stick around.
Online businesses: If you run an internet business, you can take advantage of incentive marketing on a global scale. For example, if you sell items from multiple countries, you can take note of the currency exchange rates so that you reward your consumers with the appropriate amount of local currency. For example, if your company sells products in the U.S., you can give double the amount of dollars for any purchase made in Canada. If you have tiered pricing in place, you can even give more money for the higher price that you're charging. Regardless, of whether you operate an online business or a brick-and-mortar establishment, if you can give your customers a variety of options, they're more likely to buy from you again in the future.
Rewards programs provide an excellent way to encourage repeat business. It's especially effective when used in conjunction with other incentive marketing techniques. Incentive reward programs can boost sales, boost loyalty, and increase profits.