So, what exactly is incentivized marketing? The Incentive Marketing Association defines incentive marketing as "A unique combination of advertising and incentive programs in order to create demand for a specific product or service". For us to gain insight into this powerful marketing tool, we first need to know what it is. Simply put, incentive marketing is selling more of a product or service when people are already interested. If a person is already interested, they are much more likely to buy because of the perceived benefit and connection to the product.
How can incentive marketing benefit your company? To explain the methodology, the Incentive Marketing Association utilizes simple yet profound terms. It s an organized systematic approach to get individuals to voluntarily do just what you desire them to do. It hinges on an underlying psychological equation, which states that if there are motivation and ability, there is also a performance. If someone feels motivated and able to take action to achieve their goal, they are more likely to act to achieve similar goals in the future.
How can incentivized marketing be leveraged to your advantage? For example, let's say you are the CEO of a company that offers a great incentive program, but the members of your workforce are not motivated to participate. You can use this situation to motivate your employees through a reward system. Rather than awarding everyone on your team with cash gifts, you can give each employee a small, inexpensive gift, such as a watch, or some other small token of appreciation. This not only increases their motivation level, but they will appreciate the gesture and look forward to performing their best at work.
Another great example of incentive marketing is digital business cards and loyalty programs. Digital business cards are a perfect example of using a reward program to foster overall motivation within your organization. They are relatively inexpensive and are used almost everywhere. These cards contain a unique ID that contains personal information such as a person's name, picture, or even a virtual map. Each time a card is used during the day, an activation code is generated, giving your organization access to valuable data about your customers' needs, which you can then serve through customized solutions, such as call centers and email campaigns.
Loyalty programs are also an effective incentive marketing tool for digital businesses. With most digital businesses, employees tend to either stay with the company because of the benefits offered, or they move up the ladder of management because of strong career opportunities. While some employees choose to retire or leave the company, others remain with the organization because of the benefits they receive from a loyalty program. Generally, loyalty incentives come in the form of discounts on products, special purchases, or even travel opportunities. Again, because these programs are available throughout the year, digital businesses can use them to draw the loyalty of employees, employers, and clients throughout the year.
Cash rewards are another great incentive marketing tool. Cash bonuses are a type of reward program that gives employees a specific monetary benefit when they reach a certain threshold of sales for a specific time period. If you work at an organization that regularly provides employee recognition, you will likely find the opportunity to pay your employees in cash very attractive. If your company also offers travel perks, as well, this can add up to significant savings for you and your team and could be one of the most powerful incentive marketing tools available to your company.
The most compelling incentive marketing strategy available for e-commerce businesses involves customer loyalty programs. Loyalty programs are designed to reward customers for their continued patronage of your business by providing them with special offers and discounts. In order to create a loyal customer base, you will need to offer something of value to those customers on several different levels, such as product discounts, customer appreciation events, and invitations to exclusive parties. This will build a list of repeat customers, and over time, it can lead to substantial increases in profits for your company.
One final incentive marketing strategy that you may find intriguing is offering free coffee loyalty programs to your customers. Free coffee loyalty programs work well in a number of different situations, including you have a growing business that provides a valuable service to potential clients, or you work in an industry where it is necessary to motivate and retain current customers. Providing free coffee to your customers will help to keep your employees motivated, as well as make them feel like they are benefiting from a deal that they cannot get anywhere else. If you have not yet considered these great incentives to attract new customers to your coffee shop, now is the perfect time to explore the possibilities!