I’ll give you a toaster….

Toaster Remember when we were kids and banks would offer toasters, clock radios and stadium blankets in exchange for opening a checking account?

Well baby, we have NOT come a long way. 

All too often, when a company tries to bribe potential customers with incentives, they fail to really understand the math that's going on in the prospect's head.

The key to developing a good incentive offer is understanding the value of what you are offering versus the cost of what you want in return.  Check out my post at IowaBiz.com as we explore the good and bad of incentives.

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3 comments on “I’ll give you a toaster….

  1. Robyn says:

    Drew, Mayor Bloomberg in New York City has been offering cash incentives for good grades. Best part is that it has been working. I know this is a very different context, but it often brings some results. 🙂

  2. Robyn says:

    Drew, I left out students in my comment above – the students in New York City can receive cash incentives for good grades.

  3. Robyn,

    The key to good incentives is that the pay off exceeds the pain. My daughter is an excellent student but she was very worried about keeping up her grades as she entered middle school a few years ago.

    So I bet her that she could get straight A’s. If she got straight A’s all 4 quarters, I tossed in a bonus.

    2 years later, I am happy to say I’ve “had” to pay the bonus both years. And she is a much more confident student.

    So good incentives work. Bad ones just make you look out of touch.

    Drew

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