As you know, when companies want to sell products or services they often use incentives, or ‘gift with purchase’ programs as motivators to get customers to buy now,  and to differentiate their ads from their competitors. They can be in the form of merchandise like a Free Portable DVD Player or MP3, Gifts Cards,  or travel opportunities for as little as $8 each.   It’s the "carrot and stick" theory refined over years of trial and error, by legions of smart marketers and savvy merchandisers - all to improve the success of their sales programs. It works because people can often be persuaded to change loyalties and behavior, or act when given a good enough reason to do so. 
                     

The four main business drivers for incentives marketing programs are:
· Getting customers to "Act Now"
· Increasing customer loyalty
· Differentiate the company's ads from competitors
· Making the advertisment unmatchable by competitors

Incentives programs have been successfully implemented in nearly every major industry imaginable - used in any environment where a customer’s purchasing behavior is designed and measured.   Of the industries utilizing incentives marketing, few have been more successful than the wireless industry. Think about it; nearly every one of the millions of wireless phones out there was sold with an incentive to buy.  It’s allowed us to sell huge numbers of activations, handsets and accessories. It’s allowed us to reach highly responsive customers, and entice them to buy at rates that far-exceed traditional marketing.

We’ve helped many use incentives marketing. Motorola/Cricket for example has had a high-degree of success.  A “Kick the Home Phone Habit” promotion was put together where the primary sales objective was the sell through and activation of 30,000 Motorola handsets over a 5 week period. With an incentives marketing program, the promotion was extended an additional week with over 61,000 handsets sold.

Consumer loyalty has become an important issue as the number of channels available to our customer increases. With all of these choices, wireless  retailers must separate themselves from their competition by giving added-value to their customers. Incentives can play an integral role in motivating consumers to buy certain products over others. Here are some ideas for targeting existing, and potential customers.

1. Increase Trial. When getting consumers to try a product for the first time, premium promotions get your product noticed.
2. Introduce a New Product. Giving customers something to remember during your product launch supports brand awareness.
3. Generate Attention and Traffic. No matter what business you’re in, attracting new customers' attention is a top priority.
4. Level Seasonal Variations in Sales. The dips and plateaus of the business cycle affect most industries.
5. Boost Slow Products. Being associated with well-known brands or activities gives less popular items appeal to a broader audience
6. Build Continuity of Purchase. An incentive campaign can encourage repeat sales of a product.
7. Increase Volume Sales. Premiums can increase volume sales while also increasing consumers' appreciation for the featured product.
8. Obtain a Prospect List. Premiums have proven to be highly effective in collecting accurate, valuable customer data, and the ability to further communicate to the customer/potential customer.
9. Offset Higher Prices.One way for a company to take consumers' attention off of price is to offer a valued premium. 

  In conclusion, an integrated, performance-based marketing program helps you GET, KEEP and GROW both the size of your customer base and the value of your existing customer relationships. It’s important to dedicate, or supplement a comprehensive consumer marketing program with incentive-based sales stimulation elements to keep your customer base active, and enable management of the customer lifecycle. These programs help you achieve break-through results and surpass your sales objectives by introducing highly responsive consumers to your products and services – and they can be quick and cost effective.  

Contact us to learn more about how incentives marketing can drive your sales to the next level.
http://www.tracpointwireless.com/Promotional.html