7 Types of Incentives to Use For Your Next Promotion
What motivates customers to interact with your brand? Incentives do! Here are seven types of incentives you can use for your next promotion.
It should come as no surprise that the #1 type of incentive is a contest or sweepstakes prize. People love to win high value prizes, especially cash, trips, and one of a kind experiences that can be won in a game of chance or a skill-based contest.
Coupons, vouchers, and “Buy One, Get One” (“BOGO”) type discounts at purchase are another type of incentive that can make the difference between a customer coming to your store over your competitors’ stores. Many customers offer these types of discounts in exchange for signing up for emails, using a mobile app, or just to get people into the store that day or week. A robust discount system of coupons, vouchers and “BOGO” deals is what attracts and retains loyal customers.
A rebate, or cashback after purchase, is another type of incentive to encourage sales. A fantastic example of a successful rebate or cashback program is the “Kohl’s Bucks” program, where customers get $10 to spend at a later date for every $100 spent during a promotional period. It gets people back into the stores at a later date, and has been widely successful at retaining customers.
Any type of free product, sample, swag, or gift with purchase falls into the “freebie” category of incentives. These small rewards can be given out with purchase, or without, and usually should come with the caveat of being “while supplies last.”
5. Points or Miles:
Loyalty programs use “points” or “miles” as incentives towards larger rewards that customers can earn. Loyalty programs are usually large-scale in nature, and can last from a few months to years, allowing customers to earn and redeem their earnings towards rewards over a period of time.
6. Bragging Rights
For some customers, bragging rights that they achieved some goal may not be enough of an incentive, but depending on how you set up your promotion, bragging rights could give your customer something they want — such as exposure on social media or the radio – and that might be enough to get people excited enough to participate in your promotion. One great example of this is a radio station having a trivia contest with no prize where people call in to guess the right answer. Even without the prize some people like to hear themselves on the radio, ensuring plenty of participants.
The final type of incentive to consider for your next promotion is a commission of items sold. Many multi-level marketing companies use this type of incentive structure to encourage people to sign up and sell products for them, with every item sold earning them a percentage of the sale.
- Fun Halloween Giveaway Ideas for Your Business
- 5 Ideas to Boost Virtual Event Engagement
- Best Practices for Creating Instagram Giveaway Rules
- Cooking Contest Best Practices
- Promoting “Singles Day” in the U.S.A.