The majority of retail stores implement Spiff programs to help maximize sales, motivate teamwork and increase customer participation. However, the most important part of utilizing a spiff program is the continual on-going benefit of data collection. Just as third-party vendors collect consumer information for marketing purposes, so do spiff marketers. Spiff programs, when implemented effectively can bring in new customers, new vendors and increase the demands of particular products, services, and merchandise. Data collection and analyzation are powerful spiff tools, retailers rely on. Data provide retailers with the information they need to enforce a new program, revise an existing program, or make changes to an upcoming program.
Over a period of time, data is collected and stored and used to improve failed spiff programs. Most spiff programs fail due to inadequate data. When sufficient data is gathered and shared, it can provide a wealth of resourceful information that retailers and vendors can share with each other. The most important tool business owners can use is in fact data collected from spiffs. Shared data or information often contains valuable information businesses need. This information can be compared with past information from previous spiff programs and reconstructed to work with an existing program, if possible.
What Items Did Consumers Buy the Most?
Spiff programs are often so, associated with sales revenue and sales generation. Sometimes customers buy one particular item (more so than other items) using rebate incentives. Sometimes, spiff incentives or rebate programs increase sales and help retailers meet their goals. However, the wrong type of programs can hurt a campaign, when inadequate or insufficient information is not available. When a majority of vendors have problems selling a new or specific piece of merchandise, spiff programs allow these vendors the opportunity to put their merchandise or product into circulation and offer a rebate to customers who participate in the sales process. Customers may then become loyal shoppers, not because of the product itself, but mainly because of the incentives attached to purchasing that particular product.
Data collection following a successful campaign is analyzed and interpreted through a scientific formula. The gathered information help retailers understand their customers’ profile, such as shopping habits, amounts spent, and rebates used if any. These important pieces of data, help retailers construct or reconstruct their incentive programs. These programs if proven successful, will meet the needs of these shoppers. This information allows retailers to know exactly which type of merchandise to keep on hand, seeing that supply and demand are the key ingredients to recruiting and retaining customers.
Which Seasons Did Consumers Do the Most Shopping?
Some seasons bring in more revenue than others, this is a basic fact. A sales chart reveals the most important information retailers would ever hope to see. What were the projected sales for a particular quarter, and did the sales team meet their goal? These questions hinge on the fact that consumers do most of their shopping during specific or special times of the year? Do sales increase in winter, or do consumers do most of their shopping during the summer or spring months? When retailers have adequate consumer data, they can reflect their rebate programs to coincide with their customer’s shopping habits.
Customers will buy more of a product or merchandise, in exchange for something that is equally valuable. It is a trade-off that benefits both retailers and consumers. Most consumers are finicky shoppers. What does this mean? It means that some shoppers will only shop during winter months if summer items they need are on sale. This is also true of summer shoppers, that will only shop for the winter items they know will be on sale during off-season times. This is the time, retailers can get rid of extra inventory and start preparing for new arrivals.
Were Rebates Used Extensively During Peak Season or Not?
When rebate redemptions are involved in any past or present campaign, retailers want to know what kind of impact these rebates have or have had on peak season shopping. Did the rebate incentive program increase sales? Was new or existing merchandise sold using incentives; if so, which inventory lot? Data collection systems can answer all of these questions and shed some light on rebates usage. The most effective rebate incentive works best when customers want to buy a particular item, but do not want to pay full price.
Some customers wait until an item goes on sale, or a rebate is offered in exchange for its purchase. This will be the best time to implement a rebate incentive program. If specific items sell more when they are reduced, retailers can use this information to initiate a rebate incentive that will appeal to the demand of its consumers. Data collection is used widely in the marketing industry to lure investors, vendors but most importantly customers. To equal or balance out the system, there has always got to be something of equal value to gain the trust and loyalty of consumers and sales team members.
Did Retailers Find Surveys Informative?
Customer surveys are great spiffs incentives. To get the best consumer participation, it might be helpful to enter their names into a drawing pool. This may consist of cash, prizes or merchandise. This type of incentive draws customers to the store and opens the door for sales teams to woe new or potential customers. Surveys give consumers a voice. They can express whether or not they liked a particular brand, and if so or if not, why. This information will give retailers a better idea of which merchandise consumers prefer and why? In fact, surveys can help drive successful rebate programs.
Retailers often use the data collected from consumer surveys to run another successful campaign or avoid running another unsuccessful one. Consumers pretty much know if they are getting a bargain, or if they are paying too much. When retailers listen to their customers they can offer a rebate program that will make up for any hard feelings, and poor sales. Consumers will not buy a brand or product that they know is not of any value or one that is overpriced. If sales are not bringing in a profit, it could be due to the pricing, and not necessarily the product itself.
This is why consumer data collection and spiff rebate programs are vital to the life of a business owner. Without this information, retailers would never know why sales are slow, why sales fell off, or why consumers are not buying a new brand. Consumer surveys can put some many worries to rest, and help retailers drive a profitable and sincere rebate program.
Nathaniel Smathers, a contributor to the Incentive Insights blog, brings a fresh perspective on business strategies and market trends. With a background in marketing and a passion for data-driven insights, Nathaniel offers a unique blend of expertise and creativity. His approach to dissecting complex market dynamics and transforming them into actionable strategies makes him an invaluable asset to our team.
