Are you looking for innovative ways to drive sales and build customer relationships? Customer incentives are a growing sales technique that can do plenty for your business when utilized correctly. This article aims to cover exactly what incentives are, the different options available, and how they can increase sales.
This first part of our mini-series covers all the ways you can utilize incentives, including customers, staff, and clubs.
What is an Incentive?
Essentially, customer incentives are a reward system businesses use to encourage customers to perform a specific task. Some of the most common actions that businesses incentivize include:
- Repeating a purchase
- Making a first-time purchase
- Reviewing a product
- Adding more items to their basket
- Referring a friend
- Buying a bundle (or buying bulk)
Incentives also tap into a person’s innate desire to get more than what they pay for. By offering an added customer incentive, which costs you little but offers them value, they view your business differently.
The sort of rewards they receive for performing a specific task or taking a particular action all lies in the hands of the business. The business can decide on the reward based on their particular customer base and their budget.
There are an endless number of customer incentives ideas, including:
- Reward points (which can be used to reduce the cost of their future purchases)
- Discounts (percentage or amount)
- Free product
- Access to newly released products
- Exclusive sales
- Gift-card rewards
- Cashback
- Free Shipping
Why Customers Like Incentives
Customers want to feel they are getting something in return for supporting your business. With the ever-growing competitive market, you have to reward customers for choosing your company as opposed to any other competitor.
Incentive programs, especially, create a sense of appreciation within customers where they feel valued. As a result, your business is deemed memorable, and customers are more likely to return for future sales.
Incentives also tap into a person’s innate desire to get more than what they pay for. By offering an added customer incentive, which costs you little but offers customers value, they view your business as more than just a place of business. Most customers love a good deal and love value, which can both be met with the right incentive.
What Does it Mean to a Small Producer?
According to fundera.com, customers who partake in incentive programs spend between 12 and 18% more every year. In short, incentive programs lead to increased revenue; it’s really that simple. But there is a lot more to it than just sales.
Returning Purchases: With incentives like loyalty points, where customers build up several points with each purchase, it encourages them to return regularly to make purchases from you since their reward system is accumulative. Think of a coffee shop loyalty program that offers customers a free coffee on their tenth purchase. What you’re creating is an incentive to return to your business and buy on a regular basis.
Customer Data: You can also use incentives to gather essential data about your customers. Generally, consumers don’t willingly give away personal data like e-mail addresses or birthdays. This is where incentive programs can encourage the release of this data, which you can use for targeted marketing, e-mail marketing, and social media campaigns.
Attracting New Customers: Your incentive programs won’t only encourage existing customers to take a specific action, but can also entice new customers to join in. If your business offers a particular discount, complimentary gift, or free delivery, consumers will be more drawn to your business than competitors who sell similar products.
If you’re unsure where to start with setting up an incentive program, Troly offers invaluable technology that small farmers, producers, and artisans have been using to leverage their business. The software is designed to help in every aspect of a business from world-class eCommerce solutions to smart CRM systems and expert inventory management. Sign up for your free 30-day trial, commitment-free.
