Monday, 29.05.

Incentiv talks taking the risk out of promotional rewards

Taking the risk out of promotional rewards By Marc Johnstone, MD of Incentiv

In an increasingly commoditised and competitive business landscape, where customers have more choice than ever before, and customer churn is inevitable, new customer acquisition is a baseline requirement for business survival.

If you don’t attract new customers at the same rate, or faster than you are losing existing customers, you are dead in the water.

That’s the reality.

The theory is fairly simple. In a world in which it has become increasingly difficult to differentiate your product offering from that of your competitor, the one thing that can make you stand out from the crowd is a customer reward.

The downside, of course, is that while the theory of incentivising consumers is simple, the practice isn’t. Not only are marketing budgets being squeezed from every corner, but the marketing department is also under increasing pressure to provide more for less - not only from the company’s side, but also the consumers’. In addition, because this system of rewarding consumers for purchase behaviour has become so popular of late, consumers have begun to expect rewards, and more and more, marketers need to budget for these rewards as part of their go to market strategy.

It’s a risky business.

Unless, of course, you know the right people. There are professionals who specialise in creative incentive promotions that provide all the rewards, with none of the accompanying risk.

These companies take on the risk on behalf of their clients, ensuring that customers are only rewarded when they exhibit the desired behaviour. Along with this, they take on the risk liability attached to the cost of the rewards, thereby protecting clients from additional costs on promotions. These companies are also in a position to provide all the backend platforms, actuarially assessed breakage modelling and practical mechanics behind the promotion.

In addition, if you speak to the right people, they will charge a discounted rate for the rewards, no matter how many of the rewards are redeemed, allowing you, the client, to offer rewards with a larger perceived value than their actual cost.

Provided you speak to the right people, of course!


Incentiv is a specialist provider of promotional risk and rewards fulfilment services within the loyalty and rewards industry, with a reputation for delivering effective programmes and campaigns tailored to the unique requirements of each client. Incentiv’s multi-platform programme mechanics enable maximum reach into markets, while an innovative pricing model enables deep discounting of rewards based on individually assessed programme risk profiles.

With over a decade of experience to draw from and a solutions-based approach that is geared towards achieving the goals and objectives of their clients, Incentiv is fast taking its place as the leading provider in its field, offering all of the reward, none of the risk.

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