Accurate, cost-efficient, and careful delivery of incentives that reach the right recipients at the right time define effective fulfillment. In the digital age, some audiences respond well to e-mail and other technologically advanced fulfillment approaches, but still others prefer non-interactive delivery methods, including direct mail. Yet, fulfillment costs are high due to variables such as postage, printing, and, often, third-party labor costs. And, according to Incentive’s 2010 Reader Forecast survey, more incentive programs will have budgets cut than increased this year, so cost- and time-savings are crucial.

To combat the cost- and time-challenges, marketers should seriously consider working with full-service fulfillment and incentive partners that can provide integrated solutions. Having fewer parties handle the different pieces required to implement a successful brand engagement campaign will result in quick and efficient execution and decrease the number of potential fulfillment errors. In addition, marketers will realize significant hard cost savings by avoiding standard markup fees from multiple vendors. Soft costs, as well, will decrease dramatically as valuable internal resources are freed up when marketers no longer have to communicate with multiple vendor contacts.

Saving time and money through smart fulfillment will enable marketers to focus their efforts less on current logistics and more on future campaigns and initiatives.

One winning integrated fulfillment strategy is a recent campaign executed by Scotts LawnService. Scotts wanted to develop a retention program to keep customers who were likely to cancel their lawn service during the summer, while expanding its e-mail database. Scotts also wanted to encourage customers to use its online EasyPay billing option. In its strategy, Scotts distributed a postcard pointing customers to a Web site to register and receive a free $25 gift certificate valid among 14,000 restaurants nationwide.

Once a Scotts customer either registered or signed up for EasyPay at the Web site, he or she received a gift certificate code via e-mail directly from the incentive and fulfillment provider. Consequently, Scotts saw a triple-digit percentage lift versus the control offer, not just because of the attractive incentive, but also because of the efficiency of the process.

In another successful promotional campaign, Scotts sent an e-mail as well as a billing stuffer offering a free $50 gift certificate with the purchase of an additional service. In this case, Scotts worked with the same incentive provider to distribute the incentive via both direct mail and e-mail, understanding that marketers lose valuable time and money by coordinating fulfillment tasks themselves. Scotts met direct-mail cost challenges by entrusting the provider with all fulfillment activities, including developing and printing the fulfillment letter, inserting the gift certificates, and shipping the promotion to customers.

In both cases, Scotts exceeded campaign objectives by efficiently delivering a premium that was portable, experiential, and valuable. Order receipt, gift certificate code prepping, distribution, reporting, overall quality control, and customer service support all factored into the solutions. Scotts stayed within budget and saw streamlined, on-time delivery.

Marketers looking to attract foot traffic to physical store locations have incorporated incentives directly at the checkout counter, into cash registers or other POS systems. These methods present more ways to deliver loyalty premiums along with positive, in-person experiences. Face-to-face interaction with customers help increase incentive interest and brand loyalty.

Unlike some in-store promotions that require staff to hand out incentives and track inventory, incorporating the incentive directly into the POS system enables automatic incentive delivery and minimizes human fulfillment errors. This process is done electronically, with the requirements programmed directly into the POS computer system and changed in real time to fit the needs of different promotions. Sweepstakes, gift certificates, coupons, and surveys are just a few types of incentives that can be integrated at the register.

Motherhood Maternity, the national retailer, implemented a promotional campaign using a POS fulfillment strategy. It selected a promotion that matched its client demographics and that could be easily implemented across more than 550 stores nationwide. Above all, the incentive intended to increase in-store average transaction values by encouraging shoppers to spend more in order to get more in value.

The company awarded a $50 gift certificate from a third-party online retailer when customers spent $75 or more. Electronic gift certificate codes and redemption information were designed to print out directly on the customer receipts. Cashiers offered encouragement and instructions for gift certificate code use. As a result of the campaign, Motherhood Maternity saw average in-store transaction values grow by more than 20 percent during the promotion.

Regardless of which strategy is chosen, marketers have shown that attention to fulfillment detail is just as crucial to customer engagement and loyalty success as the incentive itself. Poor fulfillment results in wasted time, blown work and labor costs, disappointing customer experiences, and embattled brands. When done right, fulfillment opens the door to return on investment and long-term customer loyalty.

Howie Schnuer is vice president of marketing, incentive, and loyalty solutions for Restaurant.com's Incentive and Loyalty Solutions division, which caters to marketers who want to motivate customers through versatile and customized solutions. Schnuer has more than 20 years of marketing experience. He can be reached at hschnuer@restaurant.com. This page is protected by Copyright laws. Do Not Copy