In today’s virtual environment, incentive programs are frequently utilized as efficient marketing strategies
Incentive marketing is not a new concept. In fact, it is one of the oldest exercises in existence. Essentially, this long-lived strategy is defined as the use of rewards (promo codes, discounts, limited time offers, points, etc.) to motivate customers towards a specific service or product.
Nowadays, instances of incentive marketing run rampant, especially within the makeup of digital businesses as thousands of companies from various industries encourage their customers with these types of opportunities. However, what exactly are the tangible benefits of the practice for modern-day business owners, employees, and their customers?
In this article we take a look at how incentives can be hugely useful tools for expansion, profit building, retention, and more.
Increased Sales = Increased Profits
It doesn’t take a genius to discover that an increase in sales will most likely always mean a consequential increase in profits. When a digital business launches an incentive, there is a huge likelihood that its existing customers will act on that incentive as well as attract new ones to do the same.
People will be more motivated to shop your product or service for the simple fact that they get something out of it, too. Potential customers that are on the fence about buying may find that their purchase is more meaningful if they save money or receive a gift while making it. This train of thought is common customer behavior online and results in more sales, and thus, more profits.
Helps to Grow Loyalty Among Customers
One of the biggest factors online businesses must fight against is the ever-expanding presence of competitors. As more and more companies give their services a digital facelift, it becomes more difficult for businesses to make their products stand out as memorable in customers’ minds.
However, incentives can bridge that gap by building a relationship with the virtual patron that is long-lasting. One instance of this can be seen in today’s U.S. sports betting industry. The passage of legislation in different states throughout the country have allowed for more online providers to build their regulated sportsbook in the digital environment, serving fans who are residents of the specific location where the activity has been legalized. Some of these platforms, to stay ahead of the competition, will then offer users the chance to grab promotions when they sign up. For example, a BetMGM promo code is one of these that rewards customers if they choose to participate in their services.
Naturally, this process forges customer loyalty because the user is more likely to come back to a product that they have previously benefited from. Although this is just one example, it is one that illustrates the powerful bond that can be created between customer and business thanks to incentives.
When a Company Wins, Everyone Wins
There is a definite sense of mutual satisfaction that can be garnered when a company’s sales reflect an increase in profits. When incentives succeed, so do businesses as a whole. Employers may be more likely to reward their workers when a marketing project sees great results.
Businesses that have marketing analytics to refer back to are better equipped to grow in the long term over those that do not
Generates More Data to Measure
Last but certainly not least, digital businesses can use incentives as a springboard for future improvements. Because data is collected each time a user clicks through offers, marketers are able to look back on that information and see if the incentive has been effective or perhaps needs to be restructured to reflect a different target audience.
The great thing about data taken online is that it is always available, even years after a initial program is launched. In the digital era, data integration is a crucial tool for development as knowing the exact actions of every virtual visitor means that tailored experiences are possible, as are increased retention and conversion rates.