Should Incentives Be Part of Your Marketing Strategy?
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Incentives can be an effective marketing tactic to drive customer activity, but they can also lead to a huge waste of time and money. Here are the 3 most common mistakes we have seen with the use of incentives in the Washington DC area.
1.) Unqualified Leads
This is a huge issue at events and trade shows. A booth will be passing out a free item and there will be a line of people pulling roller suitcases for all the free stuff they accumulate. These people are not going to buy your product. They just like free stuff!
Contests can be a way to build a database or garner leads, but be sure that they are qualified. For example, we had a client who did garage makeovers. They had a contest in which they solicited photos of the messiest garage. Based on that criterion, everyone who entered was a qualified lead. Now compare that to a contest to win a free iPad. How many qualified leads do you think that will provide?
In addition, make sure the prize is valuable. The garage make over was worth thousands of dollars. In addition, it cost the company who provided the free makeover less than the actual value, so it was a win-win for both the contest winner and the company.
3.) Gift with purchase
This traditional marketing tactic can be a great way to drive sales. But once again, the key element to making this successful is the value of the gift. If it is not of value, then you are just wasting whatever money you spent on it and not driving leads to your business.
This article is an excerpt from our eBook Top 10 Marketing Mistakes Every Washington DC Business Should Avoid. Creating the best marketing strategy for your Washington DC area business isn’t easy and the last thing any marketer wants to do is make a common marketing mistake. That’s why we’ve created this eBook. This guide walks you through the most common marketing and advertising mistakes and explains how to avoid them. Download theTop 10 Marketing Mistakes Every Washington DC Business Should Avoid and make your marketing more effective today.