Question

Topic: Strategy

Target Audience For A B2c Incentive Campaign

Posted by Anonymous on 4/30/2013 at 4:33 AM ET 250 Points
We are planning to launch an incentive marketing program, and we're trying to figure out who to target. Say we know we get great conversion rates in one city, and low conversion rates in another. Is it better to offer a big incentive discount to the group with the higher conversion rates, or to the group with the lower rates?

E.g. Do we hit Washington DC with a huge discount, to increase the conversion even more? Or do we hit Omaha with a huge discount to try to drive up conversion there, so it competes with other areas?

Any advice would be GREATLY appreciated!
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RESPONSES

  • Posted by Moriarty on 4/30/2013 at 6:12 AM Accepted
    Look at who is buying your products. Because it feels like you've hit the wall. Your marketing has drained the market - and now your leads are becoming expensive.

    So instead of getting clever, you opt to spend more on tapping a well that is rapidly drying out. In other words, you are prepared to beg for a sale (= a discount).

    Look to what motivates your customers to buy your products. That motivation is the key. There is an emotional foundation to this - and knowing how to use the panoply of emotional responses is the key to finding a well that is still full. That's when you can find entire new vistas of buyers who will be more than happy to pay full price.

    It'll take time and effort, it is a way better strategy than slowly tightening the financial noose around your neck. So take it off and lassoo some better customers instead!
  • Posted by Jay Hamilton-Roth on 4/30/2013 at 8:33 AM Accepted
    For the market that's already buying, offer a loyalty program to reward a lifetime of purchases. Give them a reason not to switch to your competition.

    For the market that's not buying, offer them a reason to start buying from you. It may be a discount, contest, or increased value (2 for 1, instead of 50% off).
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