Customer Incentives - Definition & Meaning

Published in Marketing and Strategy Terms by MBA Skool Team

What is 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


Hence, this concludes the definition of Customer Incentives along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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