How To Use Bonuses to Do Better Business

Bonus is such a positive word. It has very few, if any, negative connotations. When we hear the word bonus, we think of something extra, a reward, a perk, or a stroke of luck. Everyone understands that being offered a bonus is a good thing. So using bonus structures in your business, whatever it is, can bring tangible benefits to your enterprise.

Bonuses can be used in all sorts of ways to build a better business. Not only can your customers benefit from them, but you can also offer perks to staff, contractors, and suppliers to make yours a great company with which to do business.

Staff Bonuses

People like to feel valued in their place of work. Many elements go into creating a great workplace. Even as long ago as the 1930s, it was recognized that job satisfaction was beneficial to both employees and employers. In the 1990s, HR experts realized that pleasure alone was not enough and that employees also needed to be motivated to produce the best results.

While financial motivation alone is not the only measure to be considered in the workplace, staff bonuses significantly increase motivation. Setting employees achievable targets that will stretch them to achieve what the management needs to succeed is essential. For centuries, financial rewards have been used to motivate sales teams through commissions.

Think about using similar techniques to encourage production or customer service colleagues too. Bonuses do not have to be financial. They could be extra holiday days, shopping vouchers or other treat items, and a summer social. Sometimes it is just good to use bonuses to thank team members.

Customer Bonuses

Customer bonuses and value-added rewards are classic sales promotion techniques to reward people for buying your product. The supermarket chains are very good at using this kind of mechanic, especially for customers who have a loyalty card for the store. This can be a complicated, data-driven loyalty card that analyzes what customers have purchased and offers money off the next purchase vouchers after the sale has been made.

 For smaller establishments like a local bakery, it could be as simple as a cardboard collector card that is stamped each time someone buys a coffee. Then, to encourage people to come in on the weekend, the establishment might offer the sixth coffee (for example) free.

You can also use bonuses to get customers to try your products and services. Many online casino promotions are structured to do this. The operator offers the customer a reward in the form of a code or online token that they can use to try a game. This could be free spins on the slots or a chance to play without making a deposit at the casino. Unlike playing in demo mode, these bonuses offer customers genuine opportunities to win.

Remember that if you offer customer bonuses, you must clearly communicate the terms and conditions of the offer and when the promotion closes. In most countries, sales promotion activity is covered by a code of practice and consumer protection laws, so ensure that you are operating within the law.

Motivating Suppliers and Sub-Contractors

If you have followed the suggestions above, you should now have motivated staff together with new and loyal customers. Hopefully, you will see these resulting in better turnover and profitability. However, if you are building a better business, you also need to take into consideration the other stakeholders too.

While shareholders automatically get a bonus in the form of dividends if the company does well, remember it is also important to reward your suppliers and sub-contractors. Chances are that without them, the business would not function. This can be as simple as a supplier performance bonus if what is delivered exceeds expectations or agreed targets. It is crucial that a service level agreement is drawn up so everyone knows what to expect and understands what is being measured.