From two for one coupons to exclusive product offerings, promotional discounts frequently encourage customers to remain customers. Ultimately these various incentives are the main motivation for prospects to become consumers. For example, would last month's "Cash for Clunkers" program be as successful without the government's substantial rebate incentive?
Frankly, I'm surprised more companies do not offer more strategic discounts for current customers. Incentives help maintain a brand's relationship with clients and encourage new prospects to try the brand, product, or service.
As more and more companies "Go Green" not only to remain politically friendly but also save money, I'm curious why certain companies do not offer Green incentives. Imagine, if a cable company or telephone company offers a small discount for opt-ing in to receive electronic statements, instead of sending paper statements? The incentive will not only save the company money with paper and administrative expenses, but the benefit will customer will feel rewarded for their decision and thus their relationship with the brand will increase.