Using Incentive Marketing to Retain Repeat Customers
Most businesses include incentive marketing in their marketing strategy whether they know it or not. Incentive marketing is an action that promises the customer something in return for their business-positive action. This may be the actual purchase of a product or service, or it may be something less concrete like signing up for a newsletter or joining a membership club. Like the name suggests, it incentivizes the customer to interact with your business in a way that promotes it.
Examples of Successful Incentive Marketing
One of the best examples of incentive marketing is Amazon Prime. Prime membership unlocks free shipping and access to other Amazon apps such as Prime video. The genius behind Amazon’s incentive marketing is that people join for an annual fee, and their membership motivates them to shop on Amazon whenever possible to reap the rewards of membership.
Another good example of a successful incentive marketing campaign is the Monopoly game offered at grocery stores. Consumers purchase certain grocery items in order to get tickets to play a Monopoly game. There are multiple items people can win ranging from $20 gift cards to a mansion. Not only does the game influence where people shop, it also influences the products that they purchase.
How You Can Use Incentive Marketing in Your Business
Incentive marketing is easy to implement. It can be something as simple as a punch card. Buy 10 meals, and get one free. The reward for a customer’s business shows them that they are appreciated. Most businesses still use printed reward cards that can be stamped or punched. There are electronic reward apps that can be used in a similar manner.
For business websites, incentive marketing may be access to internet only advertisements in return for signing up for emails or downloading an application. Memberships to discount programs make customers feel exclusive, and referral bonuses deliver the double whammy of customer retention and new customers.
Build Trust with Incentive Marketing
The reason that incentive marketing helps to retain customers is that it builds trust. The customer feels like they are getting something extra, which eliminates any feelings that the business is taking advantage of them. The relationship between the business and the consumer is equalized, and the customer wants to come back for more.
If you aren’t using incentive marketing, consider adding it to your marketing strategy today. No matter how big your business is, it will reap the benefits of this advertising method. It doesn’t matter if your business is a small coffee cart or a big box store. Use our experience employing all manner of incentive marketing, contact us today.