I’ve written before about whether or not to offer rewards for referrals or extra “bonuses” for purchases and services. I know that we are all looking for ways to attract clients and customers and offering “extras” can be a great way to do that. But, there is a danger of overdoing incentives and taking the focus OFF the product or service our business is actually providing.
As a rule, the incentive should not be the main or only reason for making a purchase or becoming a customer. When I sat down to write this blog, I was thinking of when my kids were little and they would succumb to the influence of marketing and want to purchase children’s meals at local fast-food restaurants–not because they liked the food or were hungry, but because they wanted the toy. While this sort of marketing might work with young children–it isn’t the best approach to take if you are trying to create a strong and loyal market for your home business products or services.
For one thing, when the incentive changes, the customer is likely to go someplace else if he or she is not attached to the product or service you are offering. Think of other incentive programs you might have participated in–once you’ve collected your set of glasses or dishes, you likely went back to your former purchasing ways. If you were making the purchasing decision based solely on the incentive, you did not feel any loyalty or appreciation of the product or business.
For the long-term health of your home business, you need bread and butter customers who need and want the product or service you have to offer. While a good incentive might help tip the scales in your favor and urge someone to make a purchase, it can’t be the only reason that people are patronizing your business–you need to have a more solid marketing plan in order to build a stable business.
Also: Offering Rewards for Referrals
Your Target Market Doesn’t Exist in a Vacuum
Do You Know What Your Customers Want?