The Ultimate Guide to Incentive Marketing
In a world where the value that businesses and their products deliver is diluted by market competition, inflation, and rising customer expectations, keeping loyal customers is more challenging than ever.
Proven strategies like incentive marketing that evoke an emotional response and maximise the value customers receive are a surefire way to create meaningful relationships with customers and encourage customer loyalty.
What is Incentive Marketing?
An incentive can be anything that motivates customers to take an action such as subscription renewals or upgrades in exchange for rewards.
This marketing approach involves using “incentives” to drive repeat business. Examples include:
- Reward programmes
- Gift cards
- Competitions
- Vouchers
- Discounts
Incentive marketing is based on the principle of reciprocity. The concept is an integral component of Robert Cialdini’s six behavioural influences. In simple terms, you are more likely to complete a task or action if you receive something in return.
It’s up to your business to decide what kind of behaviour to incentivise. It might be anything from making a purchase to recommending a product, posting about your business on social media, upgrading a membership tier or renewing a contract.
What are the Benefits of Incentive Marketing?
Marketers use incentives to show customers how much they appreciate their custom by giving them something of value. The right mix of carefully targeted incentives can accelerate brand growth and help you retain customers.
Here are some of the other benefits of using incentive marketing:
Brand promotion
Providing relevant rewards helps you connect with your customers and create memorable experiences. Consequently, when they need a product comparable to what you provide, they will remember your brand.
Drives customer acquisition
Incentives have been shown statistically to increase customer acquisition.
Bonus Tips for Creating a Successful Incentive Marketing Strategy
After deciding on how to structure your incentives for maximum impact, there are several campaign-defining factors to keep in mind.
First, ensure that you inform your customers about the rewards that you are offering. Sound the alarms about your exciting offers via email, in-store posters, your monthly newsletter, or whatever channels your customers engage with.
The programme’s duration and timing are also crucial. These two components are inextricably linked and will determine the success of your incentive marketing strategy. Analyse sales patterns throughout the year (note the slow periods) to determine the best time to launch your campaign.
Incentives are most effective when offered during the slowest periods for sales. This gives customers extra motivation to patronise your products or services at times when they ordinarily wouldn’t.
Your customers’ response will ultimately determine how effective your incentive marketing strategy is, but paying attention to these details will improve your chances of success.
Unlock the Power of Incentive Marketing with Propello
Barriers to incentive marketing once made it a tactic only employed by the largest corporations with the biggest budgets, but with Propello, it’s an accessible and affordable tactic for businesses of all shapes and sizes!
Access a carefully curated catalogue of incentives, each from some of the most recognised brands in the UK, and offer them to your prospects and customers faster than you thought possible.
Our user-friendly platform offers your business a simple and cost-effective route to incentive marketing that will allow you to grow your business at a scale and speed that suits you!
Book a no-obligation demo and take the first step towards an improved ROI by talking to our team about your unique requirements and how Propello can unlock the next frontier of lead generation and customer acquisition for you.