Why Savvy Companies Turn to Incentive Programs During Economic Uncertainty

Historically, incentive programs endure times of economic downturn successfully, unlike other sales and marketing strategies.   While advertising costs are always cut back in a budget-conscious environment, the companies who maintain their sales, channel and employee incentive programs manage to see results – even in a time of recession.

Here are 5 fundamental reasons why incentive programs withstand economic downturns:

1)     Low fixed costs, variable costs driven by performance, high potential return – 70 – 80% of costs for incentive programs are not incurred until program goals are achieved and performance rewards are issued / redeemed. 

2)     Effectively target audiences – “over the last 100 years or more [organizations] have used incentive programs to target offers, enhancements or other engagement strategies to change behavior…” according to the IPC.

3)     Relative ease of measurement – a well-structured incentive program makes it possible to screen out external factors and find some cause and effect, especially when incentive technology is used to measure results.

4)     Flexibility – it’s difficult to change a trade show, advertising campaign or direct marketing program; but incentive programs are much easier to adjust to new circumstances.

5)     Potential for both short-term and long-term results – behaviors promoted during incentive programs will have long-standing value, evidence shows that incentives drive bottom line performance!

Learn more about FUSION Performance Marketing and its 30-year history in the Incentive Industry.

Reference:  “Why Incentive Programs Endure Recession.” Incentive Performance Center.  www.incentivecentral.org.