Incentives do work …..

An incentive is the offering of a reward in exchange for a desired action or response from a specified (targeted) individual, group or organization. We can easily visualize how incentives work with the popular carrot dangling in front of a mule to motivate him to walk down the road. We find such simplicity humorous in a "dumb" animal being so easily directed and we easily can argue that humans are not susceptible to such a transparent manipulation. But daily events indicate otherwise; we "intelligent" animals are indeed susceptible to manipulation, and actually seek out opportunities that offer rewards for our actions. Reward expectation has been programmed into every one of us from childhood; it is with the use of rewards that we developed our individual behavior and expectations. Parents offer the reward of a tantalizing dessert in exchange for eating all of our vegetables or, requiring us to clean up our rooms before being allowed to play outside with friends. Both are examples of reward expectations for performing specific actions.

As we grow up we find it difficult to believe that we were so easily manipulated, we're older and far wiser — right? Ah yes! But then explain the tremendous success the airline industry achieved in introducing mileage points for flying their aircraft over the competition? This is a prime example of how most of us changed our buying behavior. Instead of the lowest fares or convenient flight times, we opted for flying the carrier that provided points for future FREE travel. These programs were greatly expanded with the partnering of affiliate services for earning additional points; we rented cars from a participating car rental agency, stayed at a participating hotel chain and ultimately we charged all our expenses on a participating merchant credit card — all for the points (carrots). Fact is we haven't changed; we still respond to rewards placed before us and allow these reward expectations to influence our behavior to earn our desired reward.

The business world uses premiums or incentives to motivate the behavior of employees, customers and prospective customers. Look around your neighborhood at many of your local businesses; do they offer incentives? The answer is a resounding YES! Consider the donut shop offering discounts or a free donut when you purchase a dozen, or the dry cleaner offering discounts for prepayments? Does your local restaurant offer "meal deals"? The list of businesses that use incentives to lure-in customers or build loyalty can go on and on.

Organizations offer incentives for recognition of a job well done or a set goal being attained. Factories offer employees Safety Awards to encourage them to practice safe work habits. The costs of implementing a Safety program are much less than the money saved by offering them. Service Awards are often provided to employees that demonstrate their loyalty and continued service with a company. Employees can receive recognition for 5 years, 10 years and 20 years of service. Sales Awards are provided to motivate employees to sell more or meet their quotas and Dealer Incentives to customers for their patronage. In short there are many ways incentives can help in the business world. Whatever the situation, let us help determine if merchandise incentives can work for you.