People love to receive something for free. This is a fact that you should take advantage of it if you want to attract new costumers and improve your sales.
Through rebates and incentives, you can actually give people what they want but still, make a significant increase on your sales. And for that reason, rebates and incentives are two of the most common and most effective marketing strategies you can make use of.
Rebates and incentives, of course, must not be given at any time and in any situation without studying first to positive and negative effects it would generate to the business. Here are the critical areas where rebates and incentives must posses.
Just because you want to increase your sales, doesn’t mean you have to throw away the value of your product. Do not just offer rebates and lower the price of your product just to gain sales increase. Make sure that you calculate the amount you can afford to give away without risking the future of your business. This is also what you should do when giving out incentives to costumer. Simply put: give your costumers attractive price and freebies without sacrificing your profit.
Target a Particular Market.
Age, gender, social class, and location are 4 of the major factors that influence the behavior of your sales. If you want to give out rebates and incentives, target those who would really the interest in your offer. In practice, women are more patient than men in keeping rebate coupons. They also take time in shopping and would particularly prefer products that offer promotions. So you can prefer to target the women and keep men as your secondary. The same thing goes to location, social class, and age. Bottom line is, do not attempt to target everyone. It would simply won’t work.
Car manufacturers offer rebates and incentives to their less-selling units or to dispose inventory. If you attempt to do the same, do it at the right time. One example is offer rebates and incentives before you launch a similar product that can compete with the market share of your current product. This way, you convert your inventory into sales and make a smooth transition from an old product to the new one.
Duration of rebates in incentives.
Do not wait until your costumers lose their patient waiting for the time when they can claim their rebates and incentives. The shorter the award is, the better response you will get.
Give Attention to Your Loyal Costumers
Costumers come and go but if they stick to you for a long time, then you have to pay them back. Also, give them more reason to keep coming back through gifts.
Keep it simple.
This is where most failures come since some companies attempt to offer rebates and incentives in an attempt to deceive their costumer into buying your product in its original price. If this is your aim, better drop it. You will only damage your name by doing so. Instead, make it easier for your costumers to claim their rebates and incentives. Refrain from giving too many requirements like signing paperwork and photocopying their receipt several times.
Observe the Costumers’ Response
Make changes if you think your initial strategy did not work. Ask for feedbacks from your customers if they like what they receive. Respect their opinion. After all, they are the reason why you are on the business.