Incentive Marketing

Written by Linda Alexander
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Incentive marketing involves using perks to drive sales, motivate behavior, or recognize employees. What works for one person may not work for another, so often, companies combine benefits. Keep in mind that people will judge incentive programs on how hard the incentive is to get, what the reward is, and whether or not the value the rewards.

Travel rewards and merchandise are two of the most popular incentive marketing programs used today. While cash motivates many people, others stick it in their bank account and use to pay bills--unless you're in a difficult financial situation, it's not going to be seen as something special or extraordinary.

Incentive Marketing and Perceived Value

Incentives must be perceived by the public or employee as having a high value. This will ensure that the participants become emotionally involved; it ensures participation by the majority of your audience. The same is true if the reward is not accessible to the majority of participants--if they think it is too hard to win, they will not try for the prize.

For employee incentive marketing programs, it is important to take into consideration the needs of individuals as well. For example, a gift certificate or online cash that is good at many different stores is more flexible than one that's good for only one store. It is more likely to suit whoever wins it because of its flexibility. It will appeal to more people, unlike a prize that is more specific and less dynamic.

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