The Power of Incentives

The Power of Incentives

We have all seen them our entire lives. From commercials, the yellow pages, flyers, post card and signs on store front windows, incentives play a huge role in the way we buy and sell.

What exactly is an Incentive?

An incentive is an extra source of value whether free or discounted meant to entice a potential customer to take action and buy your product or service. The idea is to put a great offer in front of a potential or returning customer that they see as too good to pass up. While some incentives might actually have the business owner losing money at first, the goal is to get that customer to become a repeat buyer.

Examples of Business Incentives

Have you ever walked by a fast food place that is offering a buy 1 get 1 free special. That is probably the most classic incentive because it is really easy to understand and hard to pass up if you are remotely interested. Another example would be a 30 day free trail of a software service like Netflix to get a customer hooked on their content so they become a long term subscriber.

How To Create Your Incentive

Every single business is unique, but human nature and behavior is very similar, if we see a deal too good to pass up we will most likely take it. Start brain storming ideas around your most popular product or service to think of ways of adding additional value at no extra cost to you. Once you have this extra piece of value added on your ideal customer will be more enticed to tae you up on it. Another way to increase conversions is to put a time limit on the offer letting customers know that they might miss out if they don’t get it now. The video below will give you additional insight on the power of incentives and how they basically run our world.