We would like to bring these stats to you first so you can take advantage of it. Most companies aren’t aware of the recent spike in consumer confidence (TCB Research, May 2009).
According to The Conference Boards (TCB), the sentiment index (consumer confidence meter) has surged to 54.9% which is higher than was forecasted and is also the biggest gain seen since April 2003.
Recent jumps in the stock market, low mortgage rates and smaller job losses are brightening consumers’ spirits and fueling forecasts that the economy will return to growth in the second half of the year. This is prompting businesses to adjust to a new level of spending and promoting.
Lower-priced merchandise and added value incentives such as promotional travel are great ways to attract shoppers as they focus on essentials and conserve cash. By running multiple promotions during the recovery periods of a recession, you will be one step ahead of your competition to grab market share, the very market share your competitors will be wishing they had chased earlier.As released by the Incentive Performance Center (incentivecentral.org)
5 fundamental reasons explain why incentive programs, unlike other sales and marketing strategies, withstand economic downturns:
1. Low fixed costs, high potential return
2. Ability to effectively target audiences.
3. Relative ease of measurement.
5. Potential for both short-term and long-term results.
Long before the days of the Internet and database marketing, organizations turned to incentive programs to boost sales and productivity because they didn’t need technology to identify the people most important to their business. As long as there was an economical way to deliver a message to the targeted audience, organizations over the last 100 years or more have used incentive programs to target offers enhancements, or other engagement strategies to change behavior and subsequently, business performance.
Incentive programs are attractive during tough economic times because the cost of communicating with a well-identified audience of people is generally much less than mass-marketing programs, such as advertising, direct mail, and trade shows.
Because you have already identified the audience that can change your business outcome if they focus on what they can do to help you achieve those goals. In good times or bad, business results depend on the willingness of a key audience to do what they can as customers and salespeople to contribute to your business success.
Today, using a low-cost vacation incentive to draw consumers’ attention to your business is the best way to grab market share. If you believe you’re that much better than the other guy, you should be able to pick up business.
Consider that consumers will still continue to spend, but they will be spending more wisely. Manage your marketing expenses carefully, plan correctly. Don’t be an ostrich and put your head in the sand. Customers will expect you to do things a little differently at such times.
As companies make the shift from mass-marketing to target-marketing, they will ultimately turn to incentive programs as a primary solution rather than a secondary or complementary tool, for all the reasons outlined above. Each time an organization replaces a mass marketing technique with a one-to-one strategy, such as an incentive program, it will realize a ripple effect of benefits, engagement, satisfaction, and behavioral changes that will last over time.
Odenza has hundreds of incentive products from $10.00 and up, so call your Odenza representative today and let us find the right incentive, premium, or promotion marketing solution for your business.
Director of Marketing
Odenza Marketing Group Inc.