the 8 social incentives

INTRODUCTIONEvery human responds to incentives – it’s hard-coded into our very nature and it’s at the core of many of our purchasing behaviours.

This is good news for brands because, if we understand which incentives drive which actions, we can offer that incentive.

It should be as simple as that.

THE PROBLEM

The two biggest mistakes brands make using incentives on social media are:

1. They get stuck using the same basic incentives.

2. They fail to understand the negatives inherent in each incentive

THE OPPORTUNITYThere is a wide range of incentives we can use on social media to drive customer action from consumption through to loyalty.

Each incentive offers different values and different risks.

DISCOUNTSThe most popular incentive is the discount. Perform an action and get access to a cheaper product. The best discounts are linked to time restrictions and can be made dependent on the performance of another action. e.g. Share this post and we’ll give you 15% off your purchase

DISCOUNTS

1. The buzz around discounts can bring new customers.

2. A variety of tactics are available and revenue does not need to suffer.

3. A simple discount can be maximised through well-designed copy and creative.

1. Overuse can lead to the normalisation of lower prices.

2. Repetitive discount tactics can lead to the brand being known more for ‘20% off’ than for its real value.

3. Recurring discounts create expectations - If you can’t afford it next festive season, customers will let down.

PROS CONS

INCLUSIVITYThere are a number of ways to drive positive behaviour by including your customers and communities. Inclusivity can range from receiving their feedback to allowing them to help design a new product. Everyone wants to belong and the more you allow that, the closer you and your communities will become.

INCLUSIVITY

1. Long-term relationships can be formed with customers with little effort.

2. A brand can build communities that foster commercial growth.

3. Including customers allows them to contribute to your brand from various angles, not just sales.

1. Misunderstanding your consumers’ needs could have the reverse effect.

2. If the engagement is inauthentic, consumers will feel manipulated and used.

3. Inclusivity can’t just exist within a single campaign – it needs to be part of the brand’s ethos.

PROS CONS

SCARCITYResponding actively to scarcity is a fundamental survival requirement. If there isn’t enough to go around we’ll act to ensure we get a share. Limiting availability, displaying competition for a purchase, and building in time penalties all drive the scarcity incentive.

SCARCITY

1. You can use natural, market, and artificial forces to create scarcity and drive desire and action.

2. It’s possible to use this tactic with frequency.

3. Scarcity combined with exclusivity (the next slide) is an incredibly powerful incentive cocktail.

1. A bad product is unlikely to benefit. If consumers don’t want it, they don’t want it.

2. The timing of scarcity promotions is key and stock management needs to match this – suddenly having extra stock will appear inauthentic.

3. Some customers may become frustrated if they are unable to get the product. Manage this carefully.

PROS CONS

EXCLUSIVITYExclusivity is a powerful incentive that can be used to attract new customers or reward loyal ones. Whenever you create a special opportunity and limit the access to specific criteria, this will affect the behaviours required to meet the criteria.

EXCLUSIVITY

1. Exclusive offerings create high levels of desire and action.

2. You could charge a higher price to match the increased demand.

3. Exclusivity is a powerful reward for consumer behaviour that benefits your brand.

1. Excluding some of the consumer base could deter them from future purchases.

2. If too many people get in on the deal, the initial audience will lose the sense of individuality.

3. Exclusivity incentives carry a high level of expectations that the brand will need to deliver on.

PROS CONS

EXPERIENCESExperiences are especially effective on social media because they’re often able to transcend the digital realm. Experiences can help you connect better with your communities and help your communities connect directly with each other.

EXPERIENCES

1. Powerful and positive long-term effects on brand loyalty.

2. Talk-ability spreads the word authentically to other potential buyers.

3. A positive experience could result in customers switching from competitors.

1. Each customer is unique and a specific style of experience may work for one but not another.

2. Customer experience requires sales staff to be skilled in dealing with people.

3. Being innovative requires the consistent investment of resources.

PROS CONS

QUALIFICATIONMany customers like knowing they qualified to be your customer – it makes them special. Where relevant, adding qualifying criteria for purchasing will drive these kinds of customers to commit to the purchase and the brand.

QUALIFICATION

1. Once the consumer makes the decision to earn their way in, the probability of a sale is a lot higher.

2. A reward element creates and fosters relationships between brand and consumer

3. A brand is able to create demand for new product lines by making it desirable within a specific market.

1. This will only work with desirable products from a brand with a strong reputation.

2. A poorly designed barrier to entry could deter potential customers or frustrate existing.

3. If the obstacle is too great, the drop-off rate will be high. If it’s too easy, the effect is weakened.

PROS CONS

BENEVOLENCE Doing good feels good and, when brands offer their communities the opportunity to do good, many will jump at the chance. When communities understand that a specific action on their part results in some good happening in the world, not just for the brand, they’re a lot more inclined to perform that action.

BENEVOLENCE

PROS CONS

1. This tactic is a hallmark of the social age and it shows that your brand cares enough to think beyond profit.

2. Many people don’t give back because they don’t know how – this tactic helps them solve that.

3. People want to do good and your brand can be the one that offers it’s that opportunity.

1. A holistic approach needs to be taken, meaning the entire company needs to be on board.

2. Not all customers will take part and some may even feel guilty for not participating.

3. If authenticity is lacking, it can be damaging to brand reputation.

COMPETITIONEveryone loves free stuff and having the chance to win free stuff can incentivise consumers to do almost anything. Competitions are often overused and ill conceived but, when done smartly, they can incentivise positive consumer behaviour.

COMPETITION

1. Competitions draw attention to your brand and products.

2. This tactic is relatively cost-effective, with the main costs being the prize and the administration of the competition.

3. The allure of getting something for free is a sure driver of engagement.

1. Many countries and platforms have strict laws around promotions and competitions.

2. Poorly implemented competitions have a negative impact on sales as people feel loss for not having won.

3. Competitions are not usually a true reflection of brand affinity – most people are in it just to get a prize.

PROS CONS

CONCLUSIONHuman behaviour is tricky business. Any attempt to affect consumer behaviour requires deep thinking around the types of incentives that will work best at driving the desired actions. Each incentive has good and bad effects and, when used incorrectly, can cause serious brand harm. If nothing else, incorporating a broader range of incentives in your social media activities will improve the scope of your content and activate segments of your communities you didn’t know existed.

the 8 social incentives

Marketing