Posted in Marketing and Strategy Terms, Total Reads: 454
Definition: Incentive Marketing
Incentive marketing programs are designed to get customers to do the thing you desire them to do by offering them gifts or some other kind of incentives in return. It is most of the time a BTL marketing tool used to engage a customer further with your product or brand.
It is seen many a times when companies sponsor an event. The prizes given are in forms of discount coupons for their own coupons. Hence to avail of the prices, the customer will have to buy their product or let go of the discount.
Discount offers made by companies or retailers during festive seasons are also a kind of incentive marketing.
Five incentives that companies can use online for marketing are –
1) Getting competitive – Humans are competitive by nature. Getting your customers to compete over something related to your product/brand can greatly increase brand engagement/loyalty.
2) Feature your users – Allowing blogs/comments/posts by your users or featuring your most loyal customer is a great incentive for them.
3) Donate to charity – Declare that you will donate a part of your earning to charity and make your customers a goodwill partner of the same.
4) Product giveaway – If the product category you cater to can have an expert, send your product to the recognized experts and ask them to post their experience on their blogs, various websites etc.
5) Competitions and Prize draws – The most obvious ones are competitions with exciting prizes to draw customers to you and enhance brand engagement.