Pros, Cons, & Best Practices for Businesses

Ever wondered how some businesses rack up positive reviews so quickly across review sites?

The answer often lies in incentivized reviews—where brands offer discounts, freebies, or rewards in exchange for customer feedback.

With 93% of consumers relying on online reviews before making a purchase, businesses see this as a way to boost credibility and attract more buyers.

But is it really that simple?

While incentivized reviews can enhance engagement and build trust, they also come with risks, from violating platform policies to losing consumer confidence if reviews seem biased.

Some brands have even faced penalties and bans for review manipulation.

So, should you use incentivized reviews or not?

And if so, how do you do it ethically?

To answer all these questions, we’ve compiled this blog covering the pros, cons, and best practices of incentivized reviews!

Let’s begin with…

What Is the Meaning of Incentivised Reviews?

Incentivized reviews are customer feedback collected in exchange for a reward or perks like discounts, free products, cashback, or exclusive services.

The goal is to encourage more people to leave reviews, boosting a brand’s online reputation.

How Do They Differ From Organic Reviews?

Organic reviews are written purely based on a customer’s experience (voluntarily), without any external motivation. Incentivized reviews, on the other hand, come with a reward, which can sometimes create bias.

While not all incentivized reviews are misleading, they may be more positive than genuine experiences.

Common Incentives Used For Getting Reviews

• Discounts & Coupons: Brands offer future purchase discounts in exchange for a review.
• Free Products: Some companies send samples in return for feedback.
• Cashback or Gift Cards: Customers receive a small financial reward for reviewing a product/service.
• Exclusive Access: Early access to a new product or service in return for a review.
• Charitable donations: Usually SaaS and product-based companies offer indirect incentives like donations to NGOs or public organizations on reviews. 

As you can see in the below image, G2 encourages users to leave honest reviews and the company will donate $10 for each review.

Examples of Companies Using Incentivized Reviews:

• Amazon Vine Program: Selected customers receive free products in exchange for detailed, unbiased reviews by Amazon.  
• Sephora: The company offers loyalty points or products in exchange for detailed feedback.
• Uber & Lyft: Both companies encourage riders to rate and review drivers by offering ride credits and perks.

The Psychology Behind Incentivized Reviews

Incentivized reviews are effective because they appeal to fundamental human psychology; individuals are more likely to act when there is something in it for them.

Humans enjoy rewards, be it a discount, cashback, or a free product. This leverages the brain’s dopamine reaction, which encourages them to interact with a brand.

Second, the reciprocity principle is also at play here, where when customers get something in return for value, they feel indebted to reciprocate by writing a review.

The problem?

When individuals are incentivized with rewards for their honest reviews, their judgment might subtly be swayed. Rather than giving an objective review, they can inflate scores or stress the positives in a bid to justify the reward.

Though not always deliberate, this distorts authenticity and may deceive potential customers.

What Are the Benefits of Incentivized Reviews

When incentivized reviews are utilized responsibly, they have the potential to be a business game-changer. They motivate more feedback, build credibility, enhance customer relations, and drive sales.

Here’s how:

1. Increased Review Volume

Unless asked or encouraged, most happy customers don’t leave reviews. By providing an incentive like a discount or special offer, you provide them with a little bit of encouragement to leave their experiences.

The more reviews you have, the more trust new customers place in your brand.

2. Faster Feedback Collection

If you are gathering organic reviews, it would take time, sometimes perhaps years for a few hundred reviews. And, incentives make it move faster, allowing businesses to compile good feedback in a shorter time.

It is very helpful for new products, startups, or companies wanting to build credibility in a competitive industry. As you can see in a given image, how a detailed expert incentivized review looks like:

3. Boosts Brand Awareness and Visibility

Reviews affect local SEO rankings, and consistent new reviews make companies rank higher on Google and other review websites.

Increased visibility translates into more potential customers finding your brand.

4. Enhanced Customer Engagement and Loyalty

A well-crafted incentive approach builds customer relationships. When valued (through specials, loyalty rewards, or discounting), customers are more inclined to remain attached to the brand, repeat the purchase, and even bring friends along (brand advocates).

5. Competitive Edge in the Market

In review-driven industries where purchasing decisions are made based on online reviews, a few detailed honest feedbacks can differentiate a business from others.

Higher reviews indicate higher credibility, more conversions, and a more dominant brand presence.

6. Higher Conversion Rates

Research indicates that 92% of shoppers place greater faith in user-generated material (such as reviews) than they do in traditional advertising. A popularly reviewed product or service has a better chance of persuading potential customers, overcoming hesitation, and generating more sales.

7. Improved Product and Service Development

More reviews provide insights into what customers love and what needs improvement. Businesses can analyze feedback to refine their offerings, enhance customer experience, and stay ahead of competitors.

8. Bulk User-Generated Content (UGC)

When you incentivize reviews, many customers go beyond just text—they may share photos, videos, and testimonials, which serve as free promotional content.

Authentic UGC builds social proof and enhances marketing efforts…work as a salesperson for your brand.

As in the below image, you can see how a brand uses incentivized email review requests that trigger customers to share reviews with product photos/videos:

9. Build Social Proof for New Businesses

When an individual begins a new startup or a company, they typically have issues with visibility and credibility.

However, encouraging reviews can assist them in creating a starting point for customer feedback, which will make it simpler to bring in new buyers and get noticed in the saturated market.

Key Challenges and Risks of Incentivized Reviews

Indeed, we know that reviews with incentives will drive more visibility and conversion but at a high risk. If not handled well, they can destroy a brand’s reputation, land a brand violating the sites, and even lead to legal consequences.

Here’s what businesses need to watch out for:

1. Questionable Authenticity

At times, providing incentives can result in biased or overly positive reviews since customers end up posting favorable comments instead of their true opinions.

This may confuse prospective buyers and end up damaging brand credibility.

2. Violation of Platform Guidelines

Key review sites such as Google, Yelp, and Amazon all prohibit incentivized reviews that are not disclosed.

If your business account gets caught breaking these rules, you could have your reviews taken down, get penalties, or even have your account suspended.

3. Legal and Ethical Concerns

Consumer protection legislation in most nations demands complete transparency when a review is being incentivized. In the United States, for instance, the Federal Trade Commission (FTC) demands that companies make known any compensation or incentives provided for reviews.

Not doing so can lead to significant fines and lawsuits.

4. Decreased Consumer Trust

If customers feel that reviews are driven by rewards instead of real experiences, they might start questioning all your feedback. This can shake their trust and even push them toward your competitors.

5. Risk of Negative Publicity

If a business is caught faking reviews, it can cause a serious backlash, damaging its reputation. Consumers appreciate honesty, and any image of dishonesty can lead to a PR catastrophe.

6. Difficulty in Managing Honest Feedback

Some companies provide rewards for only good reviews and therefore lose the helpful negative criticism that could help their products and services.

Censoring negative reviews also gives a false impression of the brand, which will boomerang when customers experience problems that were never resolved.

7. Unbalanced Review Distribution

Relying too heavily on incentivized reviews can create unnatural spikes in review activity, making the business appear suspicious to both search engines and customers. This can negatively affect local SEO rankings and trigger platform audits.

8. Attracting the Wrong Customers

Some people may leave reviews just to claim an incentive, without any real interest in the product or service. These users are unlikely to become loyal customers, making the incentive strategy ineffective in building long-term brand engagement.

9. Short-Term Gains, Long-Term Losses

While incentivized reviews may increase short-term exposure, they don’t always promise long-term success. Should the business halt providing incentives, the review quantity will diminish, and there will be a drop in user engagement and credibility over a more extended period.

10. Risk of Fake Reviews

If not managed correctly, incentivized reviews can prompt customers to post fake or deceptive feedback to try to game the system or by competitors attempting to hurt a business. This can result in review removals, penalties, and loss of customer confidence.

Best Practices for Implementing Incentivized Reviews

Done correctly, incentivized reviews can increase brand credibility and sales without crossing ethical and legal lines. The secret is transparency, authenticity, and compliance.

Here’s how you can implement incentivized reviews effectively:

1. Be Transparent About Incentives

Always reveal when a review has been incentivized. Numerous platforms and regulatory agencies, such as the FTC (Federal Trade Commission) and CMA (Competition and Markets Authority), mandate that companies clearly state when an incentive affects a review.

Use labels such as:

• “This reviewer purchased this product in exchange for offering their honest criticism.”
• “We gave them a complimentary sample for review, but thoughts are 100% their own.”

2. Follow Platform Guidelines

Each review site’s policy on incentivized reviews varies. Some, such as Yelp and Google, flat-out don’t allow them, while others, such as Amazon and TripAdvisor, permit them with open disclosure.

Keep on top of the most current regulations to avoid penalties or have reviews removed.

3. Encourage Honest Feedback – Not Just Positive Reviews

The purpose of incentivized reviews must be genuine feedback, not flattery. If you only incentivize positive reviews, customers might feel obligated to leave glowing comments—even if they had a different experience. Inform them that their honest opinion is what matters most.

4. Diversify Incentives Thoughtfully

Instead of offering direct cash rewards, consider alternative incentives such as:

• Discounts on future purchases
• Loyalty program points
• Early access to new products
• Exclusive behind-the-scenes content

These types of incentives encourage engagement without compromising review authenticity.

5. Target Existing Customers, Not Just Review Seekers

Instead of getting people who are only after free products, target actual customers who have experienced your product or service already. This way, reviews are created by real shoppers who can be of actual assistance.

6. Use Incentives to Gather Private Feedback First

One of the best ways to control reputation risks is to provide incentives for private feedback prior to soliciting public reviews. This helps companies respond to issues before they become negative online reviews.

7. Monitor and Moderate Reviews

Monitor your reviews to identify suspicious trends, like an unexpected surge of highly similar positive reviews. This might indicate phony or tampered feedback, which can be against platform policies. Utilize review monitoring tools to monitor customer opinion and genuineness.

8. Balance Incentivized and Organic Reviews

If all your reviews are incentivized, it can be a red flag. Try to have a combination of organic and incentivized reviews to keep your credibility intact. Encourage organic reviews by making it simple for satisfied customers to leave feedback naturally.

9. Time It Right

Don’t rush customers into leaving a review immediately after they receive a product or service. Instead, wait until they’ve had enough time to experience it. This leads to more detailed and insightful feedback.

10. Stay Ethical and Avoid Fake Reviews

Never create bogus reviews or beg employees, friends, or relatives to write them for you. Not only is it immoral, but penalties, bans, and the loss of customer confidence may also arise. Authenticity is the key to success in the long run.

Case Studies: Successful Implementations of Incentivized Reviews

Let’s look at some real-world examples of businesses that have effectively used incentivized reviews while staying within ethical and legal guidelines. These case studies highlight what worked, and what didn’t, and key takeaways from the review incentivizing strategy.

Successful Case Studies of Incentivized Reviews

Case Study 1: Amazon’s Vine Program

Amazon’s Vine Program invites top reviewers to try new or pre-release products in exchange for honest feedback. The goal is to provide authentic, unbiased insights that help customers make informed decisions.

How It Worked:

• Vine members receive free products, but there’s no obligation for a positive review.
• Reviews are marked as “Vine Voice,” ensuring full transparency.
• Amazon handpicks reviewers based on their history of detailed, helpful reviews.

Results:

• Vine reviews are often more detailed and trusted than standard reviews.
• Products with Vine reviews see higher conversion rates because shoppers value in-depth insights.
• Transparency ensures compliance with Amazon’s strict policies.

Case Study 2: TripAdvisor’s “Review Express”

TripAdvisor launched Review Express, a tool that helps hotels and restaurants request feedback from guests through automated emails.

While no monetary incentives were offered, businesses provided small perks like free Wi-Fi or a discount on the next visit in exchange for honest reviews.

How It Worked:

• Businesses used TripAdvisor’s tool to send email review requests post-visit.
• They encouraged guests to leave a review by offering future discounts or exclusive perks.
• All reviews followed TripAdvisor’s authenticity guidelines to prevent manipulation.

Results:

• Businesses using Review Express saw a 28% increase in reviews.
• Guests trusted the reviews because they came from real visitors, not paid reviewers.
• Hotels and restaurants boosted visibility in TripAdvisor rankings.

Failed Case Studies on Incentivized Reviews

Case Study 3: Sunday Riley’s Fake-Review Scandal

Luxury skincare brand Sunday Riley was caught instructing employees to write fake positive reviews on Sephora’s website.

Employees were given specific guidelines on how to manipulate ratings, downvote negative reviews, and make fake testimonials seem authentic.

The Fallout:

What lessons we can learn from it:

• Fake reviews can permanently damage brand credibility: Customers don’t easily forget dishonesty.
• Transparency is non-negotiable: if caught manipulating reviews, expect legal trouble and a major loss of trust.

Alternative Strategies to Get More Reviews Without Incentives

Incentivized reviews can be tricky due to ethical concerns and platform policies. But the good news? You don’t need incentives to get customers to leave reviews!

Here are some effective, ethical strategies to encourage organic reviews and build trust without offering rewards.

• Provide an outstanding customer experience
• Make it easy to leave a review
• Ask at the right time
• Leverage email & sms follow-ups
• Use in-store & offline tactics
• Respond to existing reviews
• Utilize social media engagement to get reviews
• Use review management tools to streamline the process

Conclusion

Incentivized reviews can be a great way to increase visibility and collect customer feedback but pose risks. If executed ethically—by staying open about their existence, adhering to platform policies, and focusing on authentic feedback—they can contribute to building trust and credibility. Misuse can result in penalties, biased reviews, and a negative impact on your brand’s reputation.

The secret is equilibrium. Employ rewards judiciously, prioritize honesty, and let your review initiative complement long-term brand credibility with the SocialPilot Reviews Campaign feature today.

In short, incentivized reviews have the potential to fuel business success without sacrificing authenticity when done the right way.