Notes

Incentive Marketing for Slow-Moving Products
Incentives are one of the oldest forms of marketing. In the early United States, for example, retailers offered customers copper tokens after a purchase which they could then redeem for future purchases at a different store. These incentives gave consumers a reason to patronize a particular store over another. In the modern economy, incentive marketing often uses punch cards and other rewards to encourage customer business. Incentives can be used to promote a slow-moving product and expand your target market.

Incentives drive engagement

Incentives are a great way to build long-term brand loyalty. Rewards change the way shoppers interact with brands. When consumers receive rewards or other special treatments, they feel appreciated and engaged. Studies show that more than 70% of consumers visit a brand's retail location, follow the brand on social media, and view other branded content. Consumers will also subscribe to a brand's newsletter. So, if your brand doesn't offer rewards for their loyalty, consider offering incentives.

Fortunately, the motivational factors behind incentive programs can be altered. There are psychological assumptions that prevent incentive programs from working, which can make them ineffective. The following are common reasons why incentive programs fail:

They cultivate brand loyalty

Incentives drive engagement and nurture brand loyalty through an ongoing process of reward. Consumers who are rewarded with rewards and perks feel valued by brands and are therefore more likely to interact with them. In fact, studies have shown that seventy percent of loyalty members will visit a retail location, while forty percent will follow a brand on social media. Other consumers are more likely to sign up for newsletters or subscribe to other branded content.

Another effective way of cultivating brand loyalty is through special offers. A popular beauty store, Sephora, offers free makeup classes and gives customers the chance to meet new people. The products and services offered are highly personalized, making customers feel special. The company offers birthday deals, exclusive promotions, and free classes to reward loyal customers. Customers feel appreciated when they buy products from Sephora and receive the same treatment as a new customer. This builds brand loyalty and keeps churn rates low.

They can be used to sell slow-moving products

One of the most effective ways to sell slow-moving products is through cross-selling. Offering complimentary products to customers who purchase one product can increase their total purchases. The key to cross-selling is to understand your customers' needs and desires, and to make the products look as if they are all part of the same family. For example, let's say that a customer has purchased a sterling silver bracelet and two charms. She might not want to purchase all three, but she wants to get them all. She could get two charms for half the price. If this is the case, she would be highly motivated to purchase the third charm.

Another way to sell slow-moving products is to bundle them with popular items. A meal replacement product, for example, can be sold as single bottles, or in larger canisters. This tactic is known as product bundling, and can be very effective for clearing unwanted inventory. Unlike fast-moving products, slow-moving items can add to the inventory costs of a retailer, which negatively impacts the bottom line.
Website: