Purchase Incentive for Customers And How To Use It To Increase Sales?

By now we are aware of a lot of marketing tactics used by companies to sell more. Business uses a habit of people – No matter where you are around the world, you love discounts, free products and incentive programs. And why not? Who doesn’t like to save their hard-earned money wherever they can? These incentive programmes are useful not only for the customer but also for the company.

Customers get incentives for buying stuff. They think of this as a cashback or free earning or free product. Basically, getting something for less.

Saving our pocket from a huge hole is all we want. Don’t we?

Companies on the other hand usually do not lower the prices below their minimum value. They in fact in many cases sell more than usual during these incentive programmes than they do on normal days.

Many include earning points on a particular purchase which the customer can redeem for their future purchases – full or a percentage of it.

Another incentive program includes offers where you buy a certain quantity of an item over a said period and get the next free. Suppose you buy 5 chocolates over a month and get the 6th one free. There may or may not be a period to this.

So as a company what do you get?

Firstly and most evidently, you get loyal customers. If you have the points programme in place, the customer will prefer buying a product or get a service from your shop than another. They would want to collect as many points as possible to redeem it for a lower price of a product or a free product.

Secondly, good programs spread with the word of mouth. For example person A buys something and gets an incentive, he/ she will then tell this to person B, C, D etc. These people tell it to others. Now because this information is coming from a legitimate customer, people believe it.

Thirdly, if your products and services are good, people will come back to you even after the incentive programme period ends because now they are your loyal customers.

Items for purchase incentives –

Now that you know the advantages of purchase incentives why not jump into the items you can give away for the same.

We have previously talked about the few items mentioned above like points and free items. But the question is, what those items can be?

Well, items depend on what the occasion is, how much are you willing to spend and who your target audience is.

  • Discount vouchers –

These vouchers can be given to anyone and for any amount of money they are willing to spend at your store. Although what amount of discount are you willing to give on the coupon might depend on how much the customer is spending and/or whether he/ she is a regular customer or not. These vouchers can be for your items or that or a partner that you have collaborated with.

  • Free items 

Store items are great as a purchase incentive. They not only promote your brand but also give the customers a chance to try something new from your store. These free items can be from other shops too. It can be a collaboration initiative.  

  • Free upgrades

Let’s admit it, spending a hefty amount on a minute upgrade pinches the heart, and might seem a waste of money for many. Free upgrades are one of the best incentives, it works best with items like cars, laptops, phones and other machinery items. For example – an extra set of blades with a grinder.

  • BOGO offers

The BOGO offers might be the most used techniques by companies to increase sales through purchase incentives. BOGO is ‘Buy One, Get One,’ and you can add your terms and conditions after that. Maybe – ‘Buy one get one for half the price’ or ‘Buy one get one for 99’.

  • Random Useable Items 

If you have a low budget or just cannot decide on a gift or using any type of technique mentioned above, go for items like chocolates, small hampers, health and fitness accessories and candles. It might be a high possibility that your business is related to one of these, if not, you can never go wrong with these items. They are highly useful even if some don’t have a very long shelf life.

Corporate Gifting Chocolates
Corporate Gifting Hampers

If you have a high budget to spare, you can add electronic items to your list – Power Banks, headphones, speakers etc. 

Things to keep in mind-

Never go over budget as it will only defy your purpose of holding an incentive programme. 

Always go for items that can be used by the receiver. Items like showpieces are a great gift, but the downside is that people like to decorate their place, and your taste might not match theirs.  

So what are you waiting for?

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