Incentive marketing is the practice of offering people – usually consumers or channel partners – prizes, or rewards, for performing specific actions.
Incentives, in the form of rewards or discounts, are provided in exchange for the customer acting on a marketing message.
The action your company wants to elicit from consumers is up to you, and may be something simple or complex, time-sensitive, or not.
Incentives do not have to be monetary; they can also be product samples and other tangibles, or they can be experiential like VIP access.
It is important to know your audience and tailor the marketing strategy accordingly. For example, if you want customers or clients then it might be a good idea to offer them an incentive plan provided they are motivated by the reward.
Dealer Incentive Marketing programs are extremely popular for keeping the dealers focused on selling the products and services of the sponsoring company, rather than a competing product or service. For example, auto parts stores sell many brands that perform the same functions. A company that sells its products through auto parts stores must convince the parts department to recommend their brand, rather than an alternative so they would create an incentive for them to do so.
For more information about using incentives in your business, visit our sister brand Marquee Incentives.