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The success of incentive marketing lies on the ability to motivate sales and increase customer loyalty. When they do so, it helps in to deliver better quality service. While some companies have used these incentives as purely a promotional tool to attract customers and keep them coming back, there are a lot more who use it as a sales tool to generate more revenue.
Incentive marketing is an effective tool in to sell your products and services. However, not all companies are skilled at doing so. They often take the wrong way of encouraging customers. This is why many companies try to offer the incentive to the sales force for every sale they generate.
These rewards to the sales force will give them more incentive to continue to promote the company's products and services. They will continue to work harder and in turn increase sales. There is no doubt that your sales will go up if you can get more sales from your sales force.
The first thing you need to do is to determine which sales activities you want to encourage. You should have an incentivized marketing to promote all those sales activities. Then, you can use those incentives as a means to motivate the sales force.
For example, if you have a service that you provide and your company offers you some money when you refer a new client to your company, this would be a good incentive. You can also make the bonus based on the number of clients you referred. You can also give them other incentives like free lunch, toys or items of value.
Another form of incentive you can give to the sales force is to reward them if they make a new customer. Your company will see your customers love to refer their friends and family members to your company so it is to your advantage to reward your sales people if they can generate a new customer.
You can give rewards for referrals over again until they become automatic. Once this is done, you will not have to keep reminding them to do so. You can even set a daily quota or time frame you want them to reach and then you can reward them for achieving it.
Once you set the milestones for them to achieve, your sales will increase in leaps and bounds. If you feel that your sales will only go up for a few months before decreasing, you can set some targets or goals for your sales people to meet and then reward them with extra incentive or bonuses. This will help them improve their performance and boost their productivity.
Many companies also choose to reward their employees for meeting the targets they set up. Even a little achievement will increase their confidence level and they will more likely to work hard for their company.
You can also use a management system of rewards that your sales people can earn. The managers will devise a reward system that they think will get the best out of their employees. They will also have to weigh whether this reward should be given only to the top performers or it should be given to everyone.
When you set up a reward system for your sales team, they will be more motivated to complete it. It will also reduce turnover and will bring more customer retention.
When you set up the reward system, remember that it should be a combination of both monetary and non-monetary incentive. Monetary incentive marketing such as gift certificates, trip vouchers, gift cards and even cash rewards are great as long as they are linked to the improvement of performance. You will also want to make sure that the rewards that you provide are long-lasting and relevant to the performance level of the employee or sales person.