This blog is based on a conversation between Bethany Meadows and John Dwyer on the Time to Thrive podcast. John is the founder of the Institute of Wow and a customer engagement expert with over 30 years of experience working with brands like McDonald’s. In this episode, he shares how small businesses can create unforgettable customer experiences and stand out without slashing prices.

One of the biggest missed opportunities? Incentives. John reveals why 97% of businesses never use them and how you can leverage this simple but powerful strategy to grow your business.

Why Incentives Work Better Than Discounts

Most businesses compete on price, running endless discounts to attract customers. But John warns that price wars are a race to the bottom. Instead, businesses should take a lesson from McDonald’s Happy Meal. Offer an irresistible incentive that shifts the focus away from price.

When McDonald’s introduced the Happy Meal toy, they didn’t change their burgers. They changed the customer experience. Kids didn’t beg for a Happy Meal because of the food. They wanted the toy.

John has applied this same principle to countless businesses, from banks to restaurants, and has seen first-hand how adding the right incentive can drive massive sales without lowering prices.

Key takeaway: Instead of cutting prices, add value with an incentive that makes your offer more attractive.

Real-World Success Stories

John shared two powerful examples of businesses that used incentives to increase sales.

✅ The Bank That Stopped Advertising Interest Rates – A mid-sized bank in Australia struggled to compete against bigger banks. Instead of promoting lower interest rates, they launched a campaign offering a free vacation with every home loan. The result? Billions of dollars in new loans and a campaign that lasted 10 years.

✅ The Restaurant That Filled Its Tables Every Night – A high-end restaurant spent $750,000 per year on advertising but still had empty seats. John advised them to stop traditional ads and instead train waitstaff to collect customer contact details. Each day at 3 PM, they sent a text message with a special offer to a portion of their list. Within 10 minutes, the restaurant was fully booked every night.

Key takeaway: The right incentive doesn’t have to be expensive. It just needs to be valuable to your customer.

How to Use Incentives to Stand Out

If you’re in a “me too” industry—where your products or services are similar to your competitors’—it’s critical to differentiate yourself. John recommends these three steps.

• Choose an incentive that resonates with your audience. This could be a free product, an exclusive experience, or a valuable bonus like a vacation or gift card.
• Use customer data to personalize and automate your marketing. Just like the restaurant used text messages to fill its seats, businesses can use AI and automation to engage customers at the right time.
• Focus on value over discounts. Customers don’t always choose the cheapest option. They choose the one that gives them the best experience.

Key takeaway: Businesses that use incentives strategically can attract and retain customers without slashing prices.

Why 97% of Businesses Ignore Incentives

If incentive marketing is so effective, why do most businesses ignore it?

• Fear of cost – Business owners assume incentives will be too expensive without realizing the right incentive can be cost-neutral or even profitable.
• Lack of creativity – Many businesses default to discounts because they haven’t considered how to add value in a different way.
• Failure to collect customer data – Without data, businesses miss out on opportunities to follow up and maximize engagement.

Key takeaway: Incentive marketing works best when combined with customer data. A well-targeted, value-driven offer can outperform any discount campaign.

Take the First Step Toward Incentive Marketing

If you’re tired of competing on price, it’s time to rethink your marketing strategy. Here’s how to get started.

✅ Brainstorm potential incentives that align with your audience’s interests.
✅ Start collecting customer data so you can follow up with personalized offers.
✅ Test small campaigns like a giveaway or exclusive bonus to measure engagement.

By shifting the focus from price to value, you can attract more customers, build stronger loyalty, and increase sales without cutting into your profits.

To learn more about John Dwyer and the power of incentive marketing, visit Institute of Wow.