|Offering free gifts can encourage purchases and brand loyalty
Consumer-facing businesses increasingly recognise that offering a high-quality product or service isn’t enough to stand out in a crowded marketplace. Customers are seeking added value where they can – and it’s this that is heavily influencing whether or not they choose to part with their money.
This has been highlighted in a fascinating study by 360insights, which found the majority of people would want to know about what added incentives are on offer before buying a home or garden appliance. So let’s look at the figures in more detail and see what lessons marketers can learn…
Three-quarters look for incentives before parting with money
Customers must want what is being offered
For all businesses on-going customer dialogue is a given. Whether you seek feedback through social media, email or postal questionnaires or a quick phone call, you should regularly ask about the incentives and rewards customers enjoy. Additionally, firms could test a variety of rewards with different customer groups and see which performs in both the short term, and arguably, more importantly, over the long-term.
Incentive programmes can pay off
Be careful with cash rewards
As John Bird, General Manager of 360insights, observes: ‘This research highlights a serious challenge for businesses. On the one hand, we can see that rewards and incentives play a huge role in swaying consumer purchase decisions. But, at the same time, consumers expect this experience to be effortless and valuable at a personal level.’
Since different customer groups may respond to different types of rewards, you should continue to track competitive offers, schedule in time to trial new ideas and hold regular dialogue with both your customers and your customer-facing colleagues.
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