A product linked incentive scheme is a type of sales promotion strategy that offers incentives or rewards to customers who purchase specific products. The incentives may include discounts, cashback, vouchers, or other rewards that are directly linked to the purchase of a particular product.
Thank you for reading this post, don't forget to subscribe!For example, a company may offer a discount on a complementary product to customers who purchase a specific product. Alternatively, a company may offer a cashback incentive for customers who purchase a certain product during a specific period.
Product linked incentive schemes are often used by companies to increase sales of specific products or to encourage customers to try new products. They can also help to build customer loyalty by offering incentives that are directly linked to purchases.
Product linked incentive schemes are designed to create a sense of urgency and incentivize customers to make a purchase. By offering a reward that is directly linked to a specific product, companies can increase the perceived value of the product and motivate customers to buy it.
These schemes are often used in the retail industry, but they can also be used in other industries such as the automotive or technology sectors. For example, a car manufacturer may offer a discount or cashback incentive to customers who purchase a specific model of car during a particular period.
Product linked incentive schemes can be a cost-effective way to promote products and boost sales. They can also help companies to gather data on customer purchasing behavior, which can be used to inform future marketing campaigns and product development.
However, companies need to be careful when designing product linked incentive schemes to ensure that they are financially viable and do not undermine their profitability. Companies also need to ensure that the terms and conditions of the incentive scheme are clear and transparent to avoid any confusion or disappointment among customers.
An example of a product linked incentive scheme is a buy-one-get-one-free offer. In this scheme, customers who purchase a particular product are offered a free product of equal or lesser value. This incentive encourages customers to make a purchase and also provides them with an additional product for free.
Another example is a loyalty program that offers customers rewards for purchasing a particular product. For example, a coffee chain may offer customers a free coffee after they purchase a certain number of coffees from their chain. This incentivizes customers to continue purchasing coffee from that particular chain and builds customer loyalty.
In the automotive industry, a car manufacturer may offer a cashback incentive to customers who purchase a specific model of car during a particular period. This incentive encourages customers to make a purchase and also helps the car manufacturer to increase sales of a particular model.
Overall, product linked incentive schemes can take many forms, but the goal is to incentivize customers to make a purchase and increase sales of a particular product.
For information please check it : https://www.meity.gov.in/esdm/pli
