Is your customer acquisition strategy working as well as it could be? If you stop rewarding buyers at the first interaction, or even the first purchase, it may be time to rethink your tactics.
The most successful products and brands design reward strategies that align with every stage of the customer’s journey, from generating awareness to inspiring referrals. This approach works because rewards incentivize leads to move through the buyer’s journey, and bring others along with them.
Keep reading to learn how to strategically offer rewards at every step of the customer’s journey to drive action, build loyalty, and create brand advocates.
1. Awareness
2. Consideration
3. Purchase
4. Retention
5. Advocacy
1. Customer Acquisition Strategies That Build Awareness
At the first step of the buyer lifecycle, visibility is the name of the game. People can’t buy from you if they don’t know you exist. The goal of offering rewards at this stage is to spark consumers’ curiosity and generate word-of-mouth buzz about your brand.
- Distribute branded merchandise (think tote bags, water bottles, and stickers) at sponsored events or pop-ups.
- Run gift card giveaways on social media to boost reach and engagement.
- Collaborate with micro-influencers to offer discount codes or early access to your product.
Real-World Example
Canadian women’s fashion brand Brunette the Label leverages influencer marketing as part of its customer acquisition strategy. For many shoppers, influencer-driven social media content is their first point of contact with the brand. To make that moment count, Brunette the Label equips creators with easy-to-share discount codes, encouraging clicks and conversions while building brand awareness across platforms.
Why it Works
Customers love being rewarded—it makes them feel valued and leaves a lasting, positive impression of your brand. In fact, a study from Hindustan Institute of Technology and Science found that customers who feel appreciated are more likely to keep coming back for more and spread the word about the brand to others.
2. Customer Acquisition Strategies That Encourage Consideration
Once potential customers are aware of your brand, they need to determine whether or not your offerings fit their needs. The right incentives can push leads from interest to intent.
- Offer rewards for completing product demos or free trials, like a discount on the first paid month.
- Encourage social sharing by offering a referral-style incentive, such as “Post about our product on LinkedIn and get 10% off your first month.”
- Launch interactive challenges or contests that tie into your product’s value propositions, like SoFi’s rewards program in the example below.
Real-World Example
Personal finance company SoFi uses its rewards program to incentivize existing customers to explore new products. For example, if a customer already has investment accounts, SoFi will give them loyalty points for interacting with their banking or loans products. Customers can convert these loyalty points into money they can invest in their SoFi accounts.
Why It Works
People are more likely to explore your product when there’s a tangible reward involved. Research shows that gamification like this can increase customer engagement by 48% and boost engagement time by 30%.
3. Customer Acquisition Strategies That Nudge Decision Makers Towards a Purchase
The decision stage of the customer journey is one of the most critical. A well-timed incentive can nudge someone from a “maybe” to a “yes.”
- Provide welcome offers, like a sign-up bonus when customers make their first purchase or subscribe.
- Use tiered rewards, such as “spend $100, get $10 back” or “spend $250, get $25 back,” to increase average order value.
- Bundle in limited-time perks like free shipping or exclusive access to new features.
Real-World Example
Welcome offers are a popular part of the customer acquisition strategy for many credit card companies. Many of them offer sign-up bonuses to new cardholders who spend a certain amount in the first few months after opening an account.
For example, at time of writing, the Chase Freedom Unlimited Credit Card is offering new cardmembers a $250 bonus after they spend $500 on purchases in the first three months from account opening.
Why It Works
First-time customers often need that extra nudge to make a decision. A well-structured reward can close the deal, and even has the potential to increase initial and lifetime spend.
4. Customer Retention Strategies to Reward Loyalty
Getting new customers is only half the battle. Retaining them is how you’ll see profits. Consistent, thoughtful rewards can keep customers coming back for more.
- Create a loyalty program with points, tiers, or exclusive perks to encourage long-term loyalty.
- Celebrate customer milestones like anniversaries, birthdays, or purchases with personalized rewards that show customers how much you value their business.
- Offer early access to new products or invite-only events for long-time customers.
Real-World Example
Bank of America’s Preferred Rewards program offers checking account holders tiered benefits based on account balances. For example, Platinum Tier members who have an account balance between $50,000 and $100,000 get 12 no-fee ATM transactions per year at non-Bank of America ATMs.
Why It Works
Customers who feel valued tend to stay longer and invest more in your business. Four in five Americans make more frequent purchases from brands after joining their loyalty programs, while nearly 40% of customers would pay more for a product from a brand they’re loyal to.
5. Referral Marketing Strategies That Encourage Advocacy
The best marketing doesn’t come from your brand, it comes from your customers. In fact, word-of-mouth marketing can increase acquisition efforts by 54%. Empowering customers to advocate for you with refer-a-friend programs is a low-cost, high-impact acquisition channel.
- Launch a “give X, get X” referral program where both the referrer and the friend get rewarded.
- Spotlight top referrers on your website or in your emails for social proof and to make referrers feel appreciated.
- Offer bonus incentives for referring during specific campaigns, such as product launches or holiday sales.
Fashion retailer Lulus offers referrers $20 for spreading the word to friends. Customers can send friends a unique referral link and earn store credit after their friend makes a purchase of $50 or more. By following referral program best practices, Lulus has created a customer acquisition channel that rewards its loyal users.
Why It Works
People trust their peers more than ads, which is why referral marketing strategies work. The proof is in the pudding: four in five B2B sales leaders report that referrals are a source of high-quality leads.
When you reward advocacy, you amplify word-of-mouth and gain warm leads that can turn into lucrative customers. For best results, check out these referral marketing best practices.
Optimize Your Customer Acquisition Strategy With Rewards at Every Step of the Buyer’s Journey
Rewarding customers isn’t just about showing your appreciation; it’s about strategically aligning product value with each phase of the buyer’s journey. From awareness to advocacy, well-timed incentives can drive not only conversions, but also long-term relationships. By identifying the right moments to offer rewards and following referral program best practices, you can turn curiosity into commitment – and customers into evangelists.
Extole’s enterprise referral platform unlocks the full potential of your customer acquisition strategy with personalization, automated rewards, performance analytics, and more. Schedule a demo to see how Extole can help you make every step of the buyer’s journey more rewarding.
By Ana Cvetkovic
