Customer Incentives

Posted in Marketing and Strategy Terms, Total Reads: 413

Definition: Customer Incentives

Customer incentives are perks given to the customers by companies to attract and retain them such that they buy the product. If you have delayed your ad campaign and want the customers at such a late date, you think of providing certain incentives to them especially if your product is very similar to your competition and is priced nearly the same.

Such incentives target at turning a potential customer into a paying customer and some of the perks offered are as follows:

Free Shipping

Mostly practiced by ecommerce retailers like Amazon, Flipkart, Myntra etc. if you purchase above a certain amount from their website.


Discounts offered during ending season or festivals


Giving a customer a special gift(usually low cost) if he orders a minimum amount else is a loyal customer to show appreciation.


Providing different specials every month gives customers reason to keep coming back. For example- 30% off on women’s clothing or 15% off on appliances etc.

Easy Billing

Splitting your billing into more than one easy payments for your customers may give the customer an incentive to make expensive purchases.


The reasons why customer incentives are important are:

- They keep your brand on top of your mind

- Your customers will do more business with you if you incentivize and reward them

- It creates a positive PR and brand visibility for your brand

- These programs create successful sales teams

- Especially in B to B markets, sales incentives are a great marketing tool



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