Practical Incentive Programs for Startups
Offering incentives is a common practice to motivate employees and increase sales. However, you might have an impression that incentives are for employees only, particularly your sales force. Yes, it is very important to some businesses and you might want to read Young Entrepreneur’s comprehensive discussion on creating a sales incentive program.
But do you know that you have a hidden sales force waiting to be tapped? Yes there is, and they are your beloved customers. Their incentive program comes in different names such as a finder’s fee - which is common in real estate- and affiliate or referral fee for online marketing.
Powered by word-of-mouth marketing, your existing customers can help you get new customers and encourage trials of your products or services. Even if you do not have extra funds to create an incentive program for customers, you still have alternatives such as:
- Product discounts
- Group discounts
- Free samples or consultation
- Extended warranties
To make this incentive program effective, you should consult with your customers and brainstorm what rewards will entice them to actively recommend your products or services.
