An incentive program is a formal scheme used to promote or support behaviour or particular activities during a defined time period by a particular group of people. Incentive programs are especially used in sales to entice and keep customers and in company direction to move workers. Scientific literature also refers to this notion as pay for performance.
Points-established incentive programs are a form of plan where participants gather and redeem points for benefits. Points applications could be utilized to incentivize consumers or workers. Determined by the application kind as well as the organizational goals, points may be given on several standards including favorable worker conduct, the demonstration of organizational values, duplicate customer purchases, the selling of new goods, increased total sales, or even using appropriate security precautions.
Besides point giving, the organization can customizes the amounts at which points could be redeemed. Points plans are a means for organizations to move behaviour over time while enhancing the organizations’ general operation. Loyalty programs are an often employed points-based incentive program in which customers that show a particular behaviour are rewarded with points, encouraging that behaviour.