Incentivized Purchases: The Secret to Influencing Consumer Decisions

POSTED BY Greg Keating ON Aug 23, 2023 6:00:00 PM

woman opening a cardboard


What motivates consumers? Consumers are motivated by many different factors, including product price, uniqueness and exclusivity, word of mouth, and brand awareness. It can be a  challenge to differentiate your offers from those of your competitors. How do you get customers to commit to your product? 

Incentivized purchases can be a powerful tool to draw in curious consumers with the goal of making them customers. They can also reinforce your relationship with your existing customers. Incentives might be what makes a customer decide to commit to your business or to your new product.

Incentives can also encourage consumers to give their data, allowing you to better understand and target your audience. 

How can your company unlock the power of incentivized purchases to influence customer decisions? 

Unveiling the Power of Incentivized Purchases

Why would you use incentivized purchases in the first place? Incentives change consumer behavior. These purchases have many different roles in the customer relationship and offer many benefits to your company. 

These include: 

  • Attracting new customers 
  • Enhancing word of mouth advertising 
  • Encouraging customers to follow through and purchase
  • Strengthening the loyalty of existing customers through purchase incentives 
  • Encouraging current customers to sign up for recurring orders or loyalty programs 
  • Collecting data from prospective, new, and current customers 

Incentivized purchases can play numerous roles in your business success.

Deciphering Consumer Decision-Making

How do incentivized purchases use buyer psychology to influence consumer behavior? Incentives tap into the way that our minds work, encouraging consumers to make a purchase, return to your company, or give you customer information. 

When a customer sees the incentive offer, this triggers their sense of reward. People are drawn to bargains, and incentives such as discounts, free gifts, and limited time offers entice the customer to make the purchase.

Urgency can also influence buyer behavior. Many incentives are time-limited, encouraging customers to act now to get the deal. People worry that they may miss out if they don’t purchase the product, so they are more likely to buy it on the spot. 

Humans are social creatures. When a company gives a customer something of value, this triggers a feeling of reciprocity. The customers feels that they have received something, and they want to take action in return. This might include giving personal information, posting on social media, giving a word-of-mouth referral, or signing up for a loyalty program. 

Collecting points feels like a game, and it’s a thrill to see what you can purchase with those points. Customers keep on purchasing items so that they continue to collect points. Particularly in this age of ubiquitous video games, gamification is a tactic that really works with customers.

girl on her laptop about to make a purchase with her card

Creating Powerful Purchase Incentives

How can you change consumer behavior, encouraging consumers to purchase from your company? Creating powerful purchase incentives can help increase your sales. 

Designing a strong incentive involves an understanding of buyer psychology, buyer preferences, and your company’s goals. Here is a step-by-step process for creating a purchase incentive: 

  1. Know why you are offering the incentive. What is your company’s goal? Are you trying to sell old stock, promote new items, or gather customer information? You will need to target your incentive to your goal. 
  2. Know your audience. The target audience does not need to be your entire audience. You can target your whole audience or a subset of your customers. Know what motivates your customers to buy, and you’ll be poised to create a better purchase incentive. 
  3. Put the two together: Create an incentive that brings together your business objectives and your customers’ motivations. 
  4. Develop a sense of urgency. This might involve a limited time offer or a countdown timer.
  5. Communicate value. Let customers know the original and discounted value. Highlight how this product will benefit your customer. 
  6. Personalize when possible. Offering a choice of incentives helps customers become even more motivated to choose an incentive. This also offers you valuable insights into what your customers value. 
  7. Use noticeable visuals. Strong colors, messaging, and typography will help your incentive show up. 
  8. Be clear. Tell customers how they can redeem or receive the incentive. Make it easy so that customers do not feel frustrated. 
  9. Promote the incentive. Let people know about it on social media, and use other customers’ stories to communicate the value of this reward. 
  10. Track your success and make adjustments. Gather data about the success of the incentive, and use this data to modify the existing campaign and future campaigns.

Reward Systems and Buyer Behavior

Well-crafted rewards can modify buyer behavior. Reward and loyalty programs are some of the top consumer engagement tactics that brands can use to build a sense of connection and commitment between consumers and brands.These programs help shape consumers’ long-term habits and buying preferences. 

By offering exclusivity, free products, or discounts in exchange for repeated purchases, brands reward customers for their dedication. They also use buyers’ desire for progress to encourage them to keep on gathering points or discounts over time. Customers’ ongoing engagement translates into increased customer retention and a higher lifetime value, ultimately contributing to a healthier bottom line for businesses. They may even change their buying behavior and consolidate their purchases at your company. 

Boosting Customer Engagement and Sales through Incentives

Incentives enhance customer engagement and drive sales for businesses. By offering attractive rewards, discounts, and perks, companies capture the attention of their target audience. This increases customer engagement. 

When customers perceive value in the incentives being offered, they are more likely to interact with the brand, explore its products or services, and even share their positive experiences with others. Incentives improve brand perception and result in increased website visits, longer times spent interacting with content, and higher click-through rates on marketing campaigns. 

Incentives also create a sense of being part of a team. Customers feel appreciated and known, and they have a sense of reciprocity, encouraging them to return to your brand. This instills and sense of loyalty and encourages repeat purchases. One time buyers become long term customers who spread the word about your company. 

When customers are presented with enticing offers, they are more likely to make rapid purchasing decisions. This boosts customer engagement in the moment, encouraging people to try out new products and services. An incentive is a win-win for your company and your customers.  


Incentivized purchases should be one of the many tools that you use to influence consumer decisions. Incentives alter consumer behavior in your company’s favor, allowing you to create a better relationship with your customers.  

Do you want to know how to influence buying behavior? Hangar 12 can help. Check out our ultimate CPG marketing library and find strategies that will fit with your company’s needs.


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