Incentivising Sales – Universal Rules for Motivating Customers

ba-blog-1

Business statistics are always insightful, particularly when dealing with those that relay sales figures and performance. Take conversion rate figures, for example, which offer a telling insight into how forms are struggling to optimise sales and invest the requisite amount into this endeavour.

Just 22% of businesses in the UK are satisfied with their conversion rates, for example, with just £1 of the £92 spent on acquiring customers is committed to successfully converting them.

With this in mind, it's little wonder that the most successful businesses adopt an innovative approach to incentivising customers and motivating them to complete a high volume of sales. Here are some steps to help you achieve the same goals:

  1. Offer Incentives That Relate to your Product or Service

This may sound like a no-brainer, but it's amazing how many companies offer generic rewards such as iPads or iPhones in a bid to incentivise customers. While these are coveted and desirable items, of course, they can deliver a confused and conflicting marketing proposition in instances where they do not relate directly to your own products or services.

A far better alternative is to invest time in developing relevant and creative incentives, which relate to your businesses core offering and enhance your unique value proposition wherever possible.

If you want an example of this, look at companies such as Cap HPI. This firm offer a unique, driveway insurance product that can be sold by individual dealerships at the point of sale, providing customers with five-day cover that becomes active from the moment that they drive off the forecourt. From a dealer perspective, this serves as a relevant incentive that offers huge value to the customer, and could serve as a seminal trigger for their ultimate buying decision.

With this in mind, try to focus on incentives that add value to your overall proposition and genuinely engage potential customers.

  1. Ensure that Incentives are Appropriate for the Stage of the Buying Cycle

This seems like another relatively simple suggestion, but it's imperative that your chosen incentives are appropriate to the stage of the buying cycle at which they're applied.

Customers at the formative stage of their journey are unlikely to be persuaded by push promotional incentives, for example, as they're still gathering data and find out more about your brand. In fact, this type of aggressive and badly-timed promotion could put them off doing business with your entirely, so you'd be better served by offering more detailed information and directing them to insightful pages on your website.

Once you've built a foundation of trust and gained the ear of customers, you can then strive to incentivise them with tailored promotions and offers that are based on their unique behaviour.

This is an important consideration, and one that can have a huge bearing on the success of specific products and services.

  1. Make Sure that your Incentives are Concise and Easy to Understand

We talked earlier about the importance of being creative when coming up with incentives for your customers, but this applies more to concept and application than it does to presentation.

More specifically, you need to ensure that even the most innovative promotions are delivered concisely and easy to understand, as you look to present a simple value proposition that is genuinely appealing to customers.

Short and punchy promotions are particularly effective, for example, which is why so many businesses offer customers 'two-for-one' deals that deliver obvious value to customers. These are also the most memorable type of incentives, and they've proved to be particularly popular in physical stores across the globe.

If you adhere to this rule, you're sure to see conversion rates rise as a larger number of customers buy into your unique offerings.

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Saturday, 22 September 2018
If you'd like to register, please fill in the username, password and name fields.

Member Login

Business Insights & Tips

Leaderboard

1
Ron Immink
731 Points
2
Michael Lane
711 Points
3
Fionan Murray
672 Points
4
Jill Holtz
526 Points
5
ContentLive
252 Points
View Leaderboard