The strategy of incentivized marketing is becoming increasingly popular as businesses look to increase employee participation and drive business sales. According to this marketing strategy, incentive marketing is an effective way to motivate your employees. For most companies, employee involvement drives business growth. However, employees feel let down by the low level of participation in some businesses. With incentive marketing strategies, you can be sure that employees will get the support they need to help drive business growth and success.
To define the strategy, the Incentive Marketing Association applies simple terms to the concept such as a coordinated plan for individuals to take actions you desire them to take. It hinges on an all-encompassing psychological equation, that states that where there are motivation and effort, there also will be performed. As with any incentive program, rewards are used as positive reinforcement for the person's action. They should be able to sense the importance of the rewards they receive, and sincerely appreciate the help and support they are receiving. Rewards might include cash payments or items of personal use such as gift cards.
The benefits of using incentive marketing strategies in any type of business are great. However, if you apply the strategy incorrectly, it could backfire. For example, some companies use incentive marketing strategies in their loyalty programs. Rather than providing genuine products or services, these companies provide "free stuff" such as pens, pencils, and magnets. It makes the program seem more like a chore, rather than enjoyment that the customer enjoys.
This strategy has worked for many companies in the past but can backfire when the wrong incentives are used. One of the most common mistakes in using incentive marketing is asking people to take surveys. Rather than asking people for their opinion about a product, ask people to sign up for a free email newsletter. People love newsletters, so the incentive is that they will get one free with signing up. When survey incentives are attached to this service, however, people become much more likely to complete the survey, because it seems like free money!
This same strategy applies to employee benefits programs. Instead of enticing people with discounts and perks, ask employees to participate in an incentive marketing campaign. Offer a cash incentive for every two hours that an employee participates in company events, such as fundraisers. Make it easy for employees to take part, by offering prizes for every fifty completed attempts. Employees who work hard to earn the right to receive rewards, and your employee benefits program will become even more powerful.
Motivational and performance-driven incentive programs have been shown to increase engagement among program members. Consider giving employee appreciation awards. Awards can be for exemplary job performance, customer service excellence, or a combination of all three. Incentive marketing programs that encourage participation show your employee programs are making a difference in your organization and motivate more program members to take part.
It is impossible to provide a complete list of possible incentives because so many different things can benefit your company. However, simply considering some of the most common employee rewards will help you determine which incentivized marketing strategy would be best for your organization. Employee involvement and recognition are powerful incentives for employees. It builds loyalty, improves job satisfaction, and increases overall morale. Rewards for high levels of job performance or customer satisfaction are great incentives, as are bonuses for top performers.
You need a strategy in mind before you choose incentive marketing ROI strategies for your employees. Talk to your CFO about what types of incentives would be best for your business and then select a few options from that list. Take the time to discuss the options with your employees. Use them as a guide to help you develop a plan. If you don't feel like you've got a clear direction for what you'd like to accomplish, there are a number of free online resources that can help you. There are also companies like Motiva that offer consulting services for a fee.