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Connecting with your audience—be it customers or employees—requires more than just a great product or service. You need to capture attention, drive action, and build lasting relationships. This is where online incentives come into play. They are the strategic, digital nudges that motivate people to engage, perform, and stay loyal.
This guide will walk you through everything you need to know about online incentives, from the different types and their benefits to best practices for designing and measuring your own program.
Online incentives are rewards, perks, or benefits offered to individuals in a digital format to encourage a specific behavior. This behavior could be anything from making a purchase, signing up for a newsletter, referring a friend, or achieving a work-related goal. Unlike traditional, physical rewards, online incentives are delivered instantly through digital channels like email, apps, and websites.
In digital marketing, incentives are a powerful tool to:
Online incentives are diverse and can be tailored to various goals. Here are some of the most popular types:
Discounts and coupons offer an immediate, tangible benefit that directly reduces the cost of a purchase.
Example: 25% off a certain amount of money spent.
Loyalty programs reward customers for their continued business. They are designed to encourage repeat purchases and build long-term relationships.
Example: A points-based system where customers earn points for every dollar spent, which can then be redeemed for rewards, such as gift cards or prepaid cards.
These programs turn your existing customers into brand advocates by rewarding them for referring new customers.
Example: Both the referrer and the new customer receive prepaid cards.
Contests and giveaways are excellent for generating buzz and increasing brand visibility. They can drive social media engagement and grow your email list.
Example: A social media contest where users are asked to share a post and tag friends for a chance to win a prize.
Digital gift cards offer flexibility and choice, making them a highly appealing incentive. They are easy to send and redeem, making them a great choice for global fulfillment. They can also be sent immediately for positive recognition, such as sending a gift card to recognize an employee’s job well done right after they complete a project.
Example: Sending a $25 digital gift card to an employee for their birthday or to a customer as a thank you for completing a survey.
This type of incentive is especially valuable for employees or B2B clients, as it invests in their growth and skills.
Example: Offering a complimentary subscription to an online learning platform or a free pass to an industry conference.
Recognizing achievements in a public and personalized way can be a powerful motivator.
Example: A virtual trophy or badge for an employee who exceeded their quarterly sales goal, or a shout-out in the company newsletter.
While the reward is a physical item, the redemption process is entirely digital, making it a great online incentive.
Example: An employee or customer receives an email with a link to a digital storefront where they can claim a company-branded t-shirt, water bottle, or other swag.
These incentives are perfect for boosting team morale and fostering a sense of community in a remote work environment.
Example: A company-sponsored virtual escape room, a cooking class with a professional chef, or a coffee tasting session.
Implementing an effective online incentive program can lead to significant gains for your business.
Incentives provide a clear reason for people to interact with your brand or their work. They create a positive feedback loop that encourages continuous participation and effort. As of 2024, employee engagement in the U.S. dropped to 31%, the lowest that it’s been in a decade. Online incentives can be a powerful tool to reverse this trend.
A well-placed incentive, such as a limited-time discount or a free gift with purchase, can be the final push a customer needs to convert. Loyalty programs can contribute to more sales and revenue.
Rewarding loyal customers or high-performing employees makes them feel valued. This appreciation translates into increased loyalty and reduced turnover.
Incentives can be used to celebrate achievements and reinforce positive behaviors. This helps build a culture of recognition and appreciation, both internally and externally.
A successful program doesn't happen by chance. It requires careful planning and execution.
What do you want to achieve? Is it to increase sales, boost employee morale, or generate more leads? Your goals will determine the type of incentives you should offer.
Know your audience. What do they value? A team of software developers might appreciate an online course, while a customer base of young adults might prefer gift cards for popular retailers.
The incentives should be relevant to the action you want to encourage. The rules for earning and redeeming the reward must be crystal clear, and the timing should be strategic.
The redemption process should be simple and intuitive. Make it easy with a digital rewards platform such as Tango. Tango integrates with many of the programs your company likely already uses, such as Marketo and Salesloft.
Use email, social media, your website, app nudges, and live social events to promote your program and remind people about the rewards they can earn.
Even with the best intentions, incentive programs can falter. Avoid these common mistakes:
If a customer has to jump through hoops to get their reward, they'll likely give up. Keep it simple and straightforward.
Ensure your rewards are attainable. If employees or customers feel the goal is impossible, they won't even try.
A one-size-fits-all approach rarely works. Use data to segment your audience and offer personalized rewards that resonate with them.
Don't launch a program and forget about it. Continuously gather feedback and analyze data to see what’s working and what isn’t.
To ensure your program is delivering a positive ROI, you need to measure its impact.
Surveys, polls, and direct conversations can provide invaluable qualitative data. Use this feedback to understand the perceived value of your incentives.
Use the data and feedback you've collected to iterate and improve your program. A/B test different incentive types, redemption processes, and communication strategies.
Managing a large-scale incentive program can be complex. Dedicated platforms can automate the process, from distribution to tracking. These tools can help you:
The world of online incentives is constantly evolving. Look out for these emerging trends:
In a world of digital noise and competition, it’s more critical than ever for your brand to stand out. With digital incentives, your brand has an opportunity to differentiate themselves from competitors—and have a higher chance of turning customers into loyal brand advocates.
Are you ready to take digital rewards and incentives to the next level?
Book a demo with Tango or call +1-855-207-1881 to learn how our platform can seamlessly integrate digital gift cards into your program.
[1] BHN EQ Global Spring Gifting Study, n=2,098, US consumers 18+, Jan 2025
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