Incentive

Incentive is a word that is used widely in the world of marketing and basically indicates when something of added value is combined with the sale of a product or service to make it more attractive to a potential or existing customer. Ultimately, incentives aim to increase sales and contribute to organizational success.

Decision-makers often must decide what incentives they will offer their customers but many times it is for their sales and marketing staff in order to encourage and reward them for exemplary customer service or simply higher than average sales.

With any incentive that is offered, there is always a tradeoff of short term gains that may threaten long term success or even the ultimate survival of any organization. However, if carefully planned out, these can also ensure greater future returns on investment.

The trend lately is to present a variety of incentives on social media. In offering prizes, deep discounts, or a value added factor that consumers respond to in a positive way, their enthusiasm or acceptance compels them to share. This widespread sharing or viral component of incentives has propelled many a small company into a larger and more profitable brand.