This is a subscriber-only article. Join Entrepreneur+ today for access

Learn More

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

Promo Power A little freebie goes a long way toward promoting customer and employee loyalty.

By Mie- Yun Lee

Opinions expressed by Entrepreneur contributors are their own.

The power of "free" is undeniable. For proof, attendany trade show. Although you'll see traffic at boothsexhibiting the latest products, there's even more traffic atbooths giving away free stuff. The same can be said for businesseswith well-thought-out incentive programs. You're sure to senseheightened morale and productivity in offices that reward employeesfor jobs well-done.

But while recipients of both promotional products and employeeincentives view the items as free stuff, such freebies are distinctfrom each other. Promotional items are hot products used asgiveaways to your customers or potential customers. Anything yourlogo will fit on is fair game-mousepads, coffee mugs, Frisbees,etc. No matter how practical or creative you are when choosing theitem, all promotional products serve the same purpose: to generatename recognition and customer goodwill.

Employee incentives are used internally rather than externally.Instead of presenting gifts to your customers to encourage theirbusiness, you use incentives to reward your employees for workinghard and achieving their goals. Employee incentives are usuallymore extravagant than promotional products and are meant to showappreciation for your employees' efforts. Can the two ever bethe same? Sometimes. While you'd never hand your employeesstress balls after the successful completion of a project, it'snot that uncommon to give them sweatshirts boasting a companylogo.