Incentive

The incentive and rebate programs are aimed to motivate the customers for using certain product with attractive package at risk free or reduced price rate. There are many incentive rewards being offered during implementation of any such programs, following is a quick overview of some of them.

Points System

The desired behaviors like purchase and use of certain service are rewarded with the incentives like points. The common example of this can be the frequent flyer points and being offered by the airlines.

Monetary Incentives

The reduced prices, cash payback, and cash prizes are often good way to draw customer attention. This method of incentive is easier for the organization to present, but the common pit fall of this is that the customers who come are not sufficiently motivated to associate themselves with the products.

Non Cash Incentives

Merchandise and other things can also be given in shape of reward quite effectively. The result of these is quite often more lasting as compare to cash. This method is more effective as it creates sense of belonging and recognizes the customer more than just simple cash rewards so longterm effect of this is much better for any organization.

Gift Certificates

These are great way to associate your product with established product or service quite easily. A recent survey found that this is most frequent incentive being offered to customers; however one has to keep in mind that these are indirect ways and not directly associated with sales as such.

Merchandise

These are gifts that you can attach with the purchase but the pitfall remains that unless the customers are not aware of such scheme being there and have the same perceived value of your product as compare to the others chances are this might not attract as much attention. Nonetheless this is quite effective way and can be quite memorable.