Mastering Customer Retention: The Role of Loyalty Incentives

Did you know that 75% of customers prefer brands that offer incentives? Not only that, but 28% of customers cited customer incentives as a decisive factor when considering which company to buy from.

Incentives can bring additional value to the service or product you’re already providing: offering additional benefits can encourage certain types of customer behaviours and turn a regular buying experience into a memorable one.

What are consumer incentives?

Consumer incentives refer to rewards strategically employed to motivate customers to make purchases. These incentives are designed to go beyond traditional transactions, creating a value exchange that fosters loyalty and satisfaction.


Unlike one-size-fits-all approaches, consumer incentives can take various forms, including discounts, loyalty programs, cashback offers, and exclusive access to promotions.


Diverse and personalised incentives cater to individual preferences, elevating the overall purchasing experience.


Effective consumer incentive strategies not only drive sales but also cultivate lasting connections between brands and their customers, influencing positive buying behaviours and long-term brand advocacy.

How to incentivise customers?

Effectively incentivising customers involves a strategic mix of creativity and value, fostering not just initial transactions but sustained loyalty. To entice customers, consider offering compelling incentives beyond the conventional.


Explore personalised discounts, exclusive access to promotions, or loyalty program benefits tailored to individual preferences. Additionally, providing a seamless and rewarding first-time purchase experience goes a long way.


Think beyond discounts – offer valuable freebies, unique experiences, or time-limited perks that showcase the distinctiveness of your brand.


By prioritising customer-centric incentives, businesses can create a positive and memorable impact, setting the stage for long-term customer engagement and advocacy.

What are the best ways to incentivise customers?

1. Loyalty programs

Loyalty programs are a prime example of how you can incentivise your customers: there’s a reason why these rewards schemes are a staple of all kinds of businesses, and the reason is that they work really well.


According to recent research, 83% of consumers say belonging to a loyalty program influences their decision to buy again from a company.


Customers like to feel appreciated and to think that companies are grateful for their custom - and what better way to make customers feel appreciated than rewarding them for sticking with your brand?


With our event-based system, you can set up any rules you want and make every action your customers make rewardable. Even a simple social media share can be incentivised.

White Label Loyalty event-based system for loyalty incentives.
White Label Loyalty event-based system for loyalty incentives.

2. Referrals

If you’re thinking about how to incentivise customers, the idea of a referral bonus might’ve crossed your mind. This incentive is a win-win for brands and customers alike and is extremely influential in the digital world.


Referral marketing is a cost-effective marketing method used by businesses to tap into the power of satisfied customers and brand enthusiasts.


Referrals might help you enhance your brand awareness by increasing your reach, build relationships with existing customers by rewarding them for recommending your business, and make it easy for new customers to enjoy the benefits of your product or service.

How to use referrals to incentivise customers.
How to use referrals to incentivise customers.

3. Early access to items

Among other amazing customer incentive ideas, early access to items is a great way to reward loyal customers and make regular customers feel like they’re missing out on something great.


Giving some customers early access to products or promos when you release new lines or run special offers can create a sense of exclusivity, which is a great way to boost sales and loyalty at the same time.

4. Special pricing for returning customers

Another great way to incentivise customers is to give them access to special prices to show just how much you value them and that loyal customers are truly appreciated.


Rewarding customers for buying a particular volume or using your service a specific amount means they will make more effort to reach those thresholds.


Offering a small amount of money off customers’ next order can act as a significant incentive for people to come back or even refer you.

5. Use contests and gamification

Give your customers the chance to win something great by entering a contest - the entry fee can be a customer referral, a share on social media, or anything you want. Who doesn’t love to win something free?


Contests and leaderboards can be an amazing way to incentivise customers: you can use points, levels, badges, and goals to keep them motivated and engaged with your brand.


Host a trivia day, with customers who answer questions correctly at checkout receive a mystery discount - or give extra points to anyone who shares something about your brand on social media.


Are you still asking yourself how else can I incentivise my customers? Do you want more ideas like these? You should definitely check out our free 2024 Loyalty Promotions Calendar, filled with promotion ideas and resources.

2024 Loyalty Promotions Calendar: more incentives ideas.
2024 Loyalty Promotions Calendar: more incentives ideas.


When it comes to incentivising customers, the main thing to keep in mind is always the same: value. Offer your customers things that they really value and you’ll be able to foster not just initial transactions but sustained loyalty.


If you’re ready to harness the power of customer incentives, you can get in touch with one of our experts!

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Sara Rabolini

Sara Rabolini

Content Marketing Executive

Sara is our Content Marketing Executive. She shares engaging and informative content, helping businesses stay up-to-date with the latest trends and best practices in loyalty...

Post Tags

Loyalty Programs
Digital Loyalty
Customer Loyalty
Customer Retention
Loyalty Programmes
Loyalty Marketing
Customer Satisfaction