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It’s funning how one idea will take off and another will go absolutely nowhere. My staff and I are always playing with ideas and concepts for sales incentives. Sometimes we come up with something that I think is just going to go crazy but it doesn’t and then something that doesn’t really sound that great comes along and we throw it out there just for the heck of it and BAM! It’s what everybody is talking about. I wish I could say that picking a winner gets easier with time but that really doesn’t seem to matter. You just have to keep your ear to the ground and follow as well as you lead.
This year seems to be heading in a slightly new direction while some things are still pretty much where they have been for some time now.
1. Electronics are still Hot - Hot - Hot!
We started offering MP3 players as incentives several years ago. Everybody wanted one and the perceived value was high so they worked exceptionally well for sales in the $1000 range. As personal electronics products became more powerful yet still small and portable, we amended our offers to include these new products. For the last 6 months or so, Netbooks and especially Tablet PCs have really been popular. Over the same period the price of these products has dropped more than 30% making the cost of using them as incentives even more desirable which I think will allow them to remain one of the most popular sales incentives we offer for several more months.
2. Incentive Bundling
In the past we would suggest several choices of incentive offers. You would then have to choose one of them, run a test, choose another, run another test, and then pick one to use in your promotion invariably producing yet a 3rd set of results. With Incentive Bundling, we merge our best Travel Certificates and Product Awards into one certificate allowing the customer to choose which one(s) they want. This removes the trial and error of designing a promotion therefore making it much faster and easier to launch and offers your potential customers an incentive which you can be confident will please and motivate the greatest number of them.
3. Tiered Awards
A growing trend in Sales Incentives is to have 2 or 3 versions of an award available to reward customers who complete one or more objectives. Let’s say a business wants to attract floor traffic hopefully resulting in a purchase. They will give a potential customer a sales incentive with a modest backend fee just for coming in to view the merchandise. If they decide to make the purchase, they give the customer a different version of the same award that has no backend fee. In some cases they may offer yet a 3rd more valuable award as a closing tool for a more upscale purchase. This keeps the cost of the promotion low yet allows you to give a more substantial reward to your paying customers. These incentives are often bundled to match the anticipated closing ratios of the promotion which can reduce the overall cost even further.
Since I fulfill almost all of the incentives I sell, I can run with any good idea and see if it gets me any orders. Right now, these 3 ideas are the current trend that is producing the most orders which tells me they are the sales incentive ideas that are working the best for my customers.
Tags: Bundling, incentives, motivation, pricing, product pricing, profitability, rewards, sales incentives, tiered incentives, travel certificates
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