What consumers are looking for in an incentive

An incentive is only as powerful as its relevance to the consumer. This means that when you’re offering an incentive to a consumer to encourage them to complete an action, you have to be sure that the incentive is appealing to them.

So what are consumers looking for in an incentive? We reached out to Paula Glynn, Director of Search Marketing & Digital Strategy at Pixelstorm, an Australia-based digital marketing agency, to find out.

Here’s what she had to say: 

4 traits of consumer-centered incentives

According to Glynn, the traits consumers are looking for from incentives vary depending on the stage of the customer journey. Generally, though, people are looking for incentives that focus on these four areas:

1. Convenient: The incentive should be easy to redeem and not require a lot of paperwork or red tape.

As a marketer, you’re sure to find recurring themes that appear throughout your work. Convenience is non-negotiable for many consumers, and they expect it during every stop in their journey — even the touchpoints they didn’t see coming. 

No one wants to jump through hoops to collect something that’s supposed to make the journey to purchase more exciting. If you’re asking consumers to join your email list or download your mobile app for 20 percent off, the requirements should flow nicely with the rest of the customer experience. 

2. Personalized: Consumers want incentives tailored to their specific needs and interests.

Personalization and incentives are kindred spirits. In many ways, they have some of the same fundamental characteristics and responsibilities. Both personalization and incentives drive consumers closer to completing an action; both concepts work best if they resonate with consumers. 

According to consumer psychology, the incentives most favored by consumers are highly relevant. They often fit the following criteria: They are familiar, align with your consumers’ cultural identity and have meaningful ties to your consumers. Incentives are personal, and when paired with personalization tactics (discounts on items your customers purchased previously, loyalty points, time-specific gifts), consumers find them even more attractive.  

3. Timely: The incentive should be offered at the right time in the consumer journey to motivate customers to take action.

Asking a consumer to claim an incentive is delicate work. While your incentive might be an excellent addition to the customer experience, it’s still an additional action consumers must take before reaching their end goal. If consumers want a quick and easy encounter with your brand, requests for a survey response or extra purchase might be a turnoff. 

You want to ask consumers to interact with your incentive when they are primed for action. The psychology of persuasion says facilitating action works best when your request requires little to no brain power on the part of your customer, and when customers enjoy your offering. For instance, asking a consumer to make another purchase — such as a small fry with the rest of their meal when they are at the register — requires little effort from the customer and could easily align with their purchase. 

4. Rewarding: The incentive should be worth the effort required to claim it.

It’s important to note that many consumers aren’t coming in contact with your brand to earn an incentive. Consumers have a need they’re trying to satisfy by using your product — anything else is extra. 

To capture the attention of consumers, you’ll have to promote your incentive in a way that focuses on its benefits. How will it make their lives easier? Why should they spend their time on it? These are questions consumers will need answered if they’re going to give any energy to your requests.

When offering incentives, it’s essential to keep your target audience in mind. What will motivate consumers to take action? What do they value most? Knowing what your audience appreciates in an incentive will guide you in delivering the best promotions possible.