How the right customer incentives could boost your business

Opening the doors on a new retail business can be a hugely exciting moment, but the launch of your company also brings with it a whole new set of issues to consider.

One of the most obvious is how you are going to not only attract customers, but also then retain and repeatedly engage with them regarding your products and services. While there are many tactics and strategies which can assist with this, a fairly common approach is the use of incentives including special offers and deals.

A vital tool

Such concepts have become a vital tool for businesses across a range of sectors, as they provide a simple opportunity to connect with new and potential customers as well as to keep existing ones interested in what you are up to.

There are many different examples regarding how businesses use offers, with the likes of Starbucks operating rewards schemes designed to foster loyalty and give customers access to a range of special offers and free drinks. In addition, Mr Green highlights how online gambling sites use a range of deals to attract people to their services, including free bets and bonuses which see bookmakers match a customer’s first deposit. Furthermore, sometimes an incentive can be as simple as a free trial period, something which streaming services such as Netflix and Amazon Prime or gaming platforms like Microsoft’s Xbox Live use to great effect.

Personalisation

Such initiatives are undoubtedly hugely effective in their own right, but are there any ways that retailers could further develop their own incentive schemes? Research has shown that personalisation – the principle of tailoring offers to suit specific audiences or individuals – could be a particularly strong way forward. According to a study by Virtual Incentives in 2016, just two out of five customers have ever received a personalised incentive but 42% think it would be smart for companies to offer them. In addition, 56% said such an incentive would improve their consideration of a product or service, while 63% also stated that tailored coupons would increase their likelihood of purchasing from that retailer again.

However, while the outlook on personalised incentives seems overwhelmingly positive, the same study added that 24% of customers would distrust a company which took such a step with some even regarding the idea as ‘creepy’. This perhaps provides a word of warning that while many may be happy to see personalisation, a certain balance may have to be struck on the matter.

A host of options

Offering special offers and incentives to customers is undoubtedly an ideal way to keep them engaged in your business and, as the above shows, the concept can take many forms from free trials to loyalty schemes. In addition, getting up close and personal to customers could also take your efforts to a whole new level. Have a look how this company gives a personal touch to their customers.

There are a host of options available and finding the right one for your business could put you well on the way to retail success. Consider your sector and your demographic well to strike the right balance.