What is incentive marketing? Is it really a viable and effective method of marketing online? This article aims to discuss the advantages and disadvantages of incentive marketing.
Incentives. Incentives are the rewards given to consumers for doing something, such as paying for a product or for visiting a website. As an incentive, products are offered to people who want to buy it. These incentives can be monetary, such as coupons, products or services; or they can be points, such as those given in online games.
Pay. Paying for something that you like or for something that is valuable to you is known as "buying into" it. Buying into is especially true when a product does not have other available options for consumers. This method of incentive marketing is the same as when a company gives people a product or service at no cost.
Small Time Costs. Many people do not need as much motivation as other consumers, so they may need a small amount of motivation in order to keep doing what they are doing. By giving incentives, you can use a small amount of money to get people to do something or to keep doing what they are doing.
Costs. It can be very easy to overlook the costs of incentive marketing program because you may think that the benefits outweigh the costs. However, these costs can be quite substantial if you choose to use them to promote your product or service.
Large Market. You may want to reach a large market without too much work, but you may not be sure that you can reach the large market that you want to reach. Because of this, incentive marketing may not be the best choice for you. You may have to look for other methods of marketing.
Difficulty of Selection. Some products do not have many choices and therefore can be hard to find. As a result, if you have only one product to promote, you will have to find a way to get other people to buy your product.
Low Volume. Because there are so many products and services available, it can be difficult to get the same number of people to purchase the product. Because of this, many companies choose to use incentive marketing instead of the many other methods of marketing.
Performance of Product. If the product was produced well, then many consumers will enjoy the product and will continue to use it. However, because of a low performance, many consumers do not like the product and may discontinue using it.
Because these are just a few disadvantages, it can be easy to see why most companies do not choose to use incentive marketing. The best choice may be to rely on other methods of promoting the product or service that you have.