How Incentives Can Increase Advertising Effectiveness

Want to boost your sales and increase return on advertising investment why not use an incentive?. They might add to your costs but they almost always pay for themselves many times over.

Why do incentives work?

Because on average you appeal to the same response rates - plus much more, typically between 10% and 30% who were interested but took no action. And these bonus inquiries should behave and convert at similar rates.

Incentive champions Reader's Digest heavily promote their incentive, a prize draw, which can overshadow the product. Why? Because Victor Ross, Chairman of Reader's Digest was quoted as saying "I have never seen a relevant incentive fail to pay for itself."

So if you are not currently testing incentives, consider these three reasons why you should:

1. They cure apathy - of being sold something.
2. They beat buyer's remorse.
3. They give an additional 'push' to try the product or service.

Advertising research suggests incentives should be part of your advertising mix
Always major on your incentive, describe it in detail, describe what it's worth. If it costs nothing, then describe the benefits. The more desirable it seems, the more business you will receive. The more value it has, the more tempting it will be.

Incentives can be different and varied. For example; you can have one for replying, one for replying within 14 days, one for multiple purchases, one for upgrading, trying another product or service or introducing a friend.

An incentive doesn't have to be something you give, it could be something you take away, a reverse enticement. In some instances this has no cost involved and may work even better. In fact the experience of many advertising professionals suggest it does. For example:

* They have to buy by a certain date, or on a certain daya purchase deadline.
* There is limited availablity.
* It's a limited edition.
* It's restricted to certain privileged customers.

Consumers are vary and thoughtful, so be honest about your reasons for the stimulus. You will always be rewarded for your honesty. So tell them if it is:

. As an incentive.
. To prompt a product trial.
. Because "we find it's the cheapest way to get new customers".
. Because it's our centenary.

What makes a good incentive?

Always ensure that your incentive adds value, rather than cheapening the product or service. That's why price cuts rarely make good incentives. In fact studies have shown that increasing prices is often a better strategy. Finally to keep your incentives effective and fresh use them economically.

Jim Brackin is a Director of ESPConsultancy.co.uk the marketing research specialists. After 20 years in advertising and marketing Jim qualified as a Hypnotherapist, and is a Master Practitioner of Neuro-linguistics. A free report is available on how results driven marketing can dramatically improve response rates.