What is an incentive marketing company? Business Dictionary describes incentive marketing as the practice of using promotional tools (especially monetary) to encourage the purchase of goods or services by the target audience. To me, the term "icky-sounding" comes from the word "incentive". To me, the term "icky-sounding" evokes images of an evil salesman with a stack of customer credit cards and a slogan that says "charge!". This image conveys the idea that customers don't want to buy icky things, they want to buy something that is useful and enjoyable.
With this in mind, it seems obvious that incentive marketing programs for Australian businesses must feature some kind of product or service that people want to buy. If employees are motivated to work hard, the company's bottom line will increase. For example, if employees have an incentive program that pays them a bonus each time that they get a certain number of units sold during their working hours, more sales may result. The more sales, the more money the company makes.
Many companies have successfully used incentive marketing strategies to increase sales. One such strategy is to offer employees cash incentives when they meet the company's minimum spending requirements (such as purchasing certain items for the home or eating out at a restaurant). Companies that have used this incentive marketing strategy find that sales employees spend approximately $500 more per month on average than employees who get no incentive or recognition at all.
The power of marketing is well known. One might think that companies just need to put a logo on the packaging of a product and hope that the consumer will come and buy the product. This is not how companies build loyalty, though. Loyalty programs must be truly meaningful to the employee. An incentive marketing strategy is a powerful tool for increasing sales and providing customers with an incentive to purchase.
Rewards on incentive marketing programs provide an excellent incentive for participants. Motivation is built through incentives, participants are motivated to participate because the benefits are given away for doing nothing. Some people are motivated by the fear of failing, while other people are motivated by the fear of getting no rewards. Motivational programs should actually be tailored to the program members' needs. A good rewards program should include both types of motivation such as the fear of failing, and the fear of getting no rewards.
Another incentive marketing strategy that works is to ask people to do things for the group or for someone else. Through rewards, people are motivated to do what is right. For example, if the incentive marketing company developed a loyalty program, they could ask people to refer their friends and family to the business.
Incentive marketing strategies for Loyalty Programs. The most successful business loyalty programs have one thing in common, the company creates an opportunity that provides something of value to employees. This can be in the form of discounted or free merchandise, gift certificates, or cash. This "something" may be as simple as a discount or a coupon, it may also be something more complex, such as free tickets to an event or an evening of entertainment. The employee must act within the scope of the program to get the benefit. A "loyalty" program is usually best used with employees who already have a history of buying from the same company.
The ability of employers to create incentives to sell their products lies in the ability of businesses to effectively use marketing psychology. Motivation is built through recognition and the promise of recognition. When a person is encouraged to refer others to your business for their own benefits, this is known as "referral marketing". Reward marketing is similar in that you "incentivize" people to buy a product that offers them some kind of recognition, such as cash. Both of these techniques can be effective when properly implemented. Businesses that do not take advantage of these methods will find that they are often not able to create lasting positive brand impressions.