Incentive Marketing Explained

Reading Time: 3 minutes

Marketing Planning & Strategy

Incentive marketing revolves around using motivational extras to promote the sale of products or services. This means customers are incentivised to spend more money at a particular business or switch to their service.

Marketing is key for any business and an important way for business owners to reach out to new or existing customers.

However, there are so many different marketing techniques and strategies out there. It can be challenging for entrepreneurs to know the best marketing strategy for their business, and it’s no surprise new business owners are often faced with marketing anarchy!

What is Incentive Marketing?

Incentive marketing revolves around using motivational extras to promote the sale of products or services. This means customers are incentivised to spend more money at a particular business or switch to their service.

We define an incentive as anything that makes someone want to do something. For example, a perk or motivating factor that encourages you to buy from a business or find out more about their services.

An incentive could be a discount, free postage and packaging or an added gift when you complete your first order.

Incentive Marketing Campaign Example: Amazon Prime

Amazon Prime is one of the biggest examples of incentive marketing, and over 100 million people are subscribed to its Prime membership plan.

Everyone loves a good discount, and Amazon’s incentive marketing strategy aims to solve some of the most frustrating things about ordering online to encourage new users to sign up.

Every member gets free, next-day delivery on their Amazon orders and a complimentary subscription to Amazon Prime Video.

Members can also enjoy discounts on other services across their website, and this strategy drives up spending.

A Consumer Intelligence Research Partners report revealed that Prime members spend $1000 more annually than non-members- so it seems like incentive marketing is working out for Amazon!

Incentive Marketing Campaign: EE and Apple Music

The network provider EE has teamed up with Apple Music to give new users six months of free Apple Music. This is a key example of incentive marketing, as it encourages consumers to receive a free benefit if they choose EE. This company also covers any data used while their new customers listen to Apple Music, meaning new users don’t have to worry about going over their data allowance.

This campaign also benefits Apple Music, as users may choose to continue their subscription after six months, at which point Apple Music charges £9.99 per month.

This is a fantastic example of a big company offering a key incentive to new customers, partnering with another huge company and giving consumers a free little perk with their new contract.

Is Incentive Marketing For Your Business?

Incentive Marketing is a valuable and clever tool to help businesses promote their services while offering a perk or benefit for their customers. This marketing strategy is a great way to build a loyal customer base, encouraging people to come over to your business by showing that you care about consumers.

From discount offers to special perks, everyone loves to feel they are getting a good deal. Incentive marketing can also set your business apart, giving customers a pivotal incentive to come to your business instead of one of your competitors.

It doesn’t matter about your company’s size. Building that relationship with your customers and standing out from the crowd matters.

In addition, when customers feel like they are getting a good deal, it can encourage them to spend more. This can improve your bottom line and encourage customers to return to your company repeatedly.

If you want to learn more about implementing the right marketing strategy for you, get in touch!

We can help your business create an innovative and successful marketing plan, helping you reach out to new people and grow a loyal customer base.

Click here to find out more.