The way incentivized marketing works is the same whether it's for a salesperson or for the business owner. They are all companies that sell products or services to customers and when they earn money for those sales, they can then offer incentives to their customers to get them to buy more of the company's products or services. So, how does this work?
* Incentive marketing is when a business pays a commission for each sale. The commission will vary by business but generally speaking it's about 5%. Companies like to use different incentives to entice customers to make a purchase. Some businesses choose to get customers to participate in a sweepstakes or contest as an incentive for them to purchase an item that they purchase.
It seems like a good idea because you can easily get a good understanding of a customer's interests by taking a market research studies but it might be very confusing for the customer to think about the incentive marketing aspect. You may have to ask questions to get them to answer honestly.
* Incentive marketing is when a business pays a commission for each sale. The commission will vary by business but generally speaking it's about 5%. Companies like to use different incentives to entice customers to make a purchase.
* Rewards, such as rewards cashiers or incentives for signing up for a newsletter, are examples of incentive marketing. The person who receives the reward gets an incentive for signing up for the newsletter or survey. When they take the survey or purchase a product or service the company will get paid a commission based on the incentive.
* Promotional offers such as free gifts or prizes can also be incentivized marketing. When a customer buys a product, such as a laptop or digital camera, they receive the promotional offer. So, the company gets a commission from the product.
* Coupons are also an incentive marketing tactic. The companies create coupons and have the coupon available for customers to get an incentive for purchasing the coupon.
* A simple price increase of 1% or something that can be earned, such as in a sweepstakes, could be an incentive marketing strategy. The companies take the price increase and create a bonus for the customer that the customer will get an incentive for. Then, the company has the incentive marketing budget to use for any other incentives.
* The business owner may also have a goal to make a certain amount of money before the end of the year. In some cases the goal could be even just two sales and that would be incentive marketing in that it demonstrates the customer is going to purchase a certain product. Then, the owner of the business will have the money set aside to meet the incentive marketing goal.
* Giving a customer a product to try at a discounted price can also be incentive marketing. The product, usually a product that the customer does not normally purchase, can be a great incentive for a customer to purchase it. The product can also be an incentive to convince the customer to purchase the product in the future.
* A business owner may offer a free gift if they are able to reach a certain number of new customers. Then, that gift is considered an incentive marketing strategy.
* Incentive marketing can be used by any company. Just remember to be strategic about the ways in which you use incentives so that you maximize the return on your marketing budget.