What is the difference between sales incentives and sales promotions?

In retail, a sales promotion might refer to a discount or special offer on a product. This is usually associated with the release of a new product. For ex., “The local donut shop is running a two-for-one promotion on their new flavor, Peanut Butter and Chicken.”

A sales incentive is any amount of money or non-monetary reward offered to motivate salespeople to sell. This could be cash, debit card, gift cards, reward points redeemable for merchandise, or group incentive trips.

In a sales or distribution channel, a sales promotion can also be a limited opportunity for a vendor or supplier’s business buyers to get rewards or bonuses for selling a particular product or service. For instance, if the supplier has a points-based loyalty program, distributors or dealers could earn double reward points for buying or selling products.

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Sales promotions can have a couple of different definitions, depending on the context.

Group incentive travel is great for when you want to reach a MAJOR goal. No other reward will have such a massively positive impact.

Online rewards, or points-based rewards, are effective for long-term goals like employee engagement and customer loyalty. Ideal for large or diverse participant bases—easiest way to offer a wide variety of desirable rewards.

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Debit and gift card rewards work well for short-term SPIFs. People already know how to use them—get right to the motivation! Great for international participant bases—mail a physical card or email e-cards.

Different sales incentives have different advantages and best use cases.