How well a company keeps it customers satisfied is a measure of the business’s success. Not only companies, but individual shops and stores also try to do their best to please their customers. However, with a cut throat competition, the market dynamics change and companies need to revise their methods of marketing. Marketing premiums is one such method which had been prevalent since the late 18th century and since then every business related to consumer products had adopted this method.
What exactly are Marketing Premiums?
Premiums are items which are given for free to a customer whenever he or she makes a purchase, or after the customer has proved its loyalty to a company buy buying a number of products from them. Marketing premiums help in three ways:
1. They help in strengthening the bond with the present customers and influence them to buy more products in order to receive more premiums
2. They help in promoting a product since the customer is bound to make use of a free product
3. They help in attraction potential customers who are intrigued by the idea of these premiums and how the marketing behind them works
4. Premiums can be in any form – items, gift cards, surprise gifts, shopping credits etc. A premium can take form of any service or product which gives the customer a sense of gratification. Unlike freemiums, which are items given to a customer regardless of whether he has made a purchase or not, premiums require the customers to make purchases and might even cost them packaging and shipping costs.
During the early times, shopkeeper would give pieces of copper to their customers on every purchase they made. The customers could then exchange a specific number of these copper pieces for a product at the shop. Today, this credit point system is found in any kind of business, be it the airline industries, retail shops, petrol pumps and even credit card services. The rules are the same – you get credits for any purchases you make, the distances you travel or fuel you buy. However, instead of being in a physical form, these credits get collected digitally. Once you have enough credits, you can convert them to buy items or have discounts on them.
When companies started to treat their customers with premiums, there were new business-plans laid in the industry. However, there was a slight issue. Although free gifts appeal everyone, there was no credibility behind the fact whether the customer will actually enjoy their free gift. Hence, gift cards were introduced to solve this problem. Gift cards are vouchers worth a specific amount of money. They can be used by anyone and in case a product’s price is greater than what the gift card can offer, you’ll have to pa extra accordingly. These gift cards can be used only at the store they are meant to be used, hence a trick used by companies to make sure that their customers will return to buy products from their stores.
Surprise Premium Packaging
Including a free gift within the packaging of a product is a big way to create excitement amongst the consumers. Children, especially, choose their food items like corn flakes or biscuits according to the free gift they would get with those food items.
Then you also have lucky codes written at the back of a cold drink’s cap or on box tops, which can reward the lucky customer with mega prizes.
Premiums are not limited to the given examples in this write up, and can take shape in whatever way which pleases the business company as well as the customers. Marketing premiums are given in order to create loyalty of the customers towards the companies. You may also be interested in 800paydayloans.com
Saurabh Mukhekar is a Tech Blogger from Pune, India. He is also thinker, maker, life long learner, hybrid developer, edupreneur, mover & shaker. He’s captain planet of BlogSaays and seemingly best described in rhyme.
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