What is the incentive

Incentives refer to all the incentive systems introduced in marketing campaigns.

The goal of an incentive is to motivate an individual to take action, in the case of marketing, to purchase a product or service, in order to increase turnover and sales.

Thanks to incentives, it is possible to stimulate the sales force towards achieving pre-set marketing goals.

Types of Incentives

There are various incentive systems, also called incentive systems, and they are determined based on the marketing objectives of each individual company.

The incentive uses systems for achieving goals based on:

• Achievement of the target: whoever reaches the pre-set goal obtains the reward;
• Exceeding the target: the greater the percentage by which the target is exceeded, the greater will be the reward;
• By tiers: each tier of results corresponds to a prize.

To have an effective strategy and be motivating for the achievement of goals, and thus a greater winning of prizes, the incentive must have a time limit and a clear objective to prevent the customer from going off track.

The prizes offered by an incentive campaign are:

• Travel;
• Money;
• Significant items;
• Acknowledgments of honor titles.

The points that a customer accumulates can have a time limit of up to two or three months, in order to increase the value in points of an item to also clear out an excessive stock.

Example of incentive: Holiday Bonus 2020

With the arrival of the pandemic and the health emergency, the economy has suffered significant damage, especially in the tourism sector.

Many activities closed during the quarantine, unfortunately, have not reopened. Italians, in fact, could not organize their holidays due to the economic crisis.

The Relaunch Decree, has established the tourism bonus, to be used only in Italy, to heal the economy and the Italian tourist facilities.

To help families with low income and relaunch national tourism, the new Dpcm has allocated 4 billion euros to support businesses and workers in the sector. Of these, 2.4 billion are reserved for the tourism bonus 2020.

The Holiday Bonus 2020 represents a incentive both for vacationers who will be able to deduct 50% of the expenses incurred, and for hotel facilities that can benefit from a 50% discount on their earnings.