Are you looking for creative ways to motivate past customers to keep purchasing? Do you need an innovative way to boost referrals and bring in new business? Incentive marketing is a powerful tool small business owners can use to get creative with their marketing approach. With special discounts, giveaways, and gamified interactions, you can improve customer loyalty while increasing profitability.
Not sure how to get started? We’re here to walk you through 10 ways to use incentive marketing to improve customer loyalty and encourage repeat purchases. Here’s everything you need to know:
What is Incentive Marketing?
Incentive marketing is a marketing technique that uses rewards and incentives to encourage business. Small business owners can use these marketing tactics to reward loyal customers and engage with past customers. Offering free products or special discounts to new customers can also help boost sales and revenue.
10 Ways to Use Incentive Marketing to Improve Customer Loyalty
There are many creative ways your small business can leverage incentive marketing to improve your approach to sales and marketing. Here are 10 creative ways to get started:
1. Referral Bonuses
If you’re a plumber or a contractor, you know just how important word-of-mouth marketing is to your sales and profitability. Referrals from past customers or partners tend to have higher conversion rates and are more viable leads. Encouraging referrals can also help streamline customer acquisition and increase your revenue.
With a well-thought-out referral program, you can reward your loyal customers for providing you with a quality referral. This will keep your current customers engaged while improving your sales conversion rates and sales efforts.
2. Loyalty Programs
Rewarding loyalty encourages repeat business and keeps your customers engaged with your offerings. For example, let’s say you own a local med spa. For every chemical peel or laser hair removal service your customers book, you can give them redeemable points. The more points they collect, the more rewards they receive. This will keep your customers coming back for more and help you retain your customer base.
3. First-Time Customer Offers
First-time customer offers can attract new customers and push them to buy. These incentives work well for salons, local boutiques, or restaurants. You can offer new customers a special discount they can use on a product or meal. Sending these offers via email or SMS marketing is a great way to boost brand visibility and get the word out about your approach to incentive marketing.
4. Seasonal Promotions
Whether it’s Christmas, Halloween, or Easter – the holidays are a great time of year to leverage incentive marketing through seasonal promotions. Seasonal promotions are limited-time discounts and offers for specific products and services. Since these are limited time, they add a sense of urgency, which pushes customers to make a purchase quicker. Through email marketing, paid ads, and social media, you can market your services to prospects in your community. You can also set up a lead gen pop-up on your website and collect emails in exchange for a seasonal discount.
5. Exclusive Memberships
Exclusive memberships provide monthly recurring revenue and improved profitability. These memberships are great for repeat customers who always shop with your small business. With an exclusive membership, you can offer them special discounts every time they purchase. You can also plan member-exclusive events, offer priority booking, or giveaway free services. This incentive marketing tactic encourages repeat business and can help you increase loyalty with the customers who shop with you the most.
6. Flash Sales
Are you looking for a quick revenue boost? Plan a 24-hour flash sale. These sales add a sense of urgency and encourage customers to buy before it’s too late. A great way to add to the sense of urgency is to include a countdown clock in your email marketing. You’ll also want to get playful with your subject lines, copy, and imagery.
7. Service Bundle Deals
Increase your average order size with an exclusive bundle of your products or services. This incentive marketing tactic is great for plumbers, gardeners, or HVAC owners. With a bundle, you can motivate customers to invest in one or more services at a discounted rate. This will encourage them to spend more and help you cross-sell your other services.
8. Customer Appreciation
Show your loyal customers you appreciate them with customer appreciation initiatives. There are many ways to show your customers you care. Whether it’s a handwritten note or a holiday gift, these small tokens of appreciation can help encourage sales and repeat business.
9. Social Media Giveaways
Social media giveaways can help you grow your online presence and increase your social media following. Contests encourage your followers to engage with your social media content. It can also help boost sales and brand awareness while driving new prospects to your website. When developing a social media contest, consider your overall goal so you can define the contest rules to align with your marketing initiatives.
10. Gift With Purchase
A gift with purchase can help encourage customers to spend a specific amount of money with your business. For example, let’s say you own a med spa, and offer a special gift to customers who spend $100 or more during one visit. Customers will be more likely to spend more to receive that incentive.
Improve Your Marketing With Townsquare Interactive
Whether it’s a service bundle deal or a loyalty program, incentive marketing is a highly effective tool your business can use to boost sales and marketing. Townsquare Interactive offers services that can help enhance your incentive marketing strategy. We’re here to help with web design, SEO, or social media marketing. We also have a business management platform, designed with small business owners in mind.