Guide to incentivizing 5-star customer reviews

Customer reviews are the #1 factor impacting purchase decisions. They beat out price, free shipping, brand reputation, and even recommendations from friends and family. But soliciting feedback the wrong way can land you $43,000 in fines per violation. 

Here's how to incentivize reviews, reduce bias, and stay compliant.

Key takeaways

• Customer reviews influence purchasing decisions more than price, free shipping, brand, or family recommendations.

• Incentivizing reviews is legal if you follow FTC rules: offer incentives to all reviewers regardless of sentiment, disclose the incentive clearly, and never gate reviews.

• Incentives activate the "silent middle," customers who wouldn't normally leave feedback. This increases review volume and diversity.

• Platform rules vary. Google bans incentives. G2 allows them with disclosure. Yelp prohibits even requesting reviews.

Why customer reviews matter

Authentic reviews drive sales. According to a recent study:

• 99.9% of customers read reviews when shopping online (57% for brick-and-mortar)

• Ratings and reviews rank as the most important factor in purchasing decisions

• 86% of consumers won't buy online without reviews (51% for in-store purchases)

The takeaway: more reviews generally means more sales. But the way you get those reviews matters.

Can you legally incentivize customer reviews?

Yes, you can legally offer incentives for reviews. There's no law against it. But the Federal Trade Commission (FTC) requires that incentives be fair and transparent. Fair means you reward all reviews equally, not just positive ones. Transparent means you disclose that the reviewer received something in exchange for their feedback.

What’s allowed vs. what’s not 

Whether you host reviews on your own site or encourage them on third-party platforms, the FTC's guidelines are clear:

Platform rules vary, too. Trustpilot and G2 allow incentivized reviews with proper disclosure. Google and Yelp don't allow them at all.

The ethics of incentivized reviews

Incentivizing reviews is controversial. Done wrong, it can violate FTC guidelines and expose you to fines. But research shows that incentives help businesses reach customers who would never normally post feedback.

Tremendous believes that if you ask someone for their time and input, you should compensate them. That philosophy extends to customer reviews. But our position comes with caveats.

Before offering an incentive for a review:

• Understand the pros and cons of incentivization

• Act within the bounds of the law

• Know your review platform's rules

Incentives activate the "silent middle"

Two groups of people tend to leave reviews of their own volition: the overjoyed and the disgruntled. 

Incentives encourage participation from folks who wouldn’t normally share feedback. Engaging this silent middle increases overall review volume and provides a broader diversity of customer opinions.

The downside: reviews can skew positive

Now comes the conundrum. Incentives make the review-writing process more enjoyable. That positive feeling seeps into the customer's sentiment.

• Ultimately, this can skew reviews toward positive results (Woolley, K., & Sharif, M. A. 2021). 

• Overly rosy reviews create unrealistic customer expectations and can lead to customers making purchase decisions using imperfect data.

• When your product doesn't live up to the hype, customers churn and publicly sour on your brand.

Incentives won't fix a bad product

If people are unhappy with your product, offering an incentive won’t save you. 

Research shows that negative associations stick. An incentive paired with a company someone dislikes still produces a negative review. Think of it this way:

• An incentive to review + a company you like = generally positive review

• An incentive to review + a company you’re ambivalent about = skews positive 

• An incentive to review + a company you hate = negative review

How to reduce bias in incentivized reviews

The chief problem with incentivizing reviews is the results are skewed toward being unrealistically positive. Researchers offer a few solutions:

• Disassociate the incentive from review-writing. This encourages volume while reducing bias. Try using language like  “share your results” rather than “write a review.”

• Use small, standardized incentives. This discourages people who are just trying to make a quick buck.

• Focus on diversity, not elevation. Your goal is adding a range of perspectives, not inflating ratings. You may see more negative reviews, but research shows this likely won’t negatively impact revenue.

What is review gating?

Review gating means requesting reviews only from your happiest customers, or actively suppressing negative ones. It distorts your brand's perception and erodes trust in the review process.

It’s also illegal.

In January 2022, Fashion Nova LLC agreed to pay the FTC $4.2 million for suppressing customer reviews. That same month, the FTC released Soliciting and Paying for Online Reviews: A Guide for Marketers, which states:

• Don't ask for reviews from people who haven't used the product or service

• Don't ask staff to write reviews without disclosing their employment

• Don't ask for reviews only from customers you think will leave positive ones

• Don't ask family and friends for reviews unless they disclose the personal connection

• Don't condition incentives on positive reviews, explicitly or implicitly. Even without that condition, the review should disclose the incentive

Know your platform's rules

Rules around incentives and review requests vary widely by platform.

Read and follow each platform's guidelines. Reviews influence purchasing decisions. Getting booted from a platform could be catastrophic for your business.

How to build a review incentive program

Once you've confirmed incentives are allowed on your target platform, here's how to set up a compliant program that generates authentic feedback.

Step 1: Get established on a review site

Like any strategic marketing effort, start by knowing your audience. Where are customers most likely to look for reviews of your product or service?

Software companies: G2 and Capterra host millions of reviews on tech services.

Brick-and-mortar shops: Google Reviews and Yelp are standard go-tos for consumers.

Once you've targeted a few sites, create a profile and select a category. This helps customers find you. To pick the right one:

• Think like your customers. What terms do they use to describe your product?

• Check how competitors are categorized.

• If your product doesn't fit an existing category, some sites let you suggest new ones.

This isn't always straightforward. "Payments" is too broad and lumps you in with Square and PayPal. "Customer loyalty software" might include unrelated survey tools. Pick something specific. For example, Tremendous uses "Rewards and Incentives" on G2.

Step 2: Contact your customers

Now that people can find you, it's time to generate reviews. Confirm your platform's rules first.

For tech companies: Add a feedback form that appears after someone's used your app for a while.

For B2C or retail: Time your request at key points in the customer journey. Good options include after a purchase, order delivery, or service experience.

Copy these templates for review requests

Email request:

Subject:

Rate your [service type] in 5 seconds

Body:

Hi [Name],

Thanks for completing [specific service] on [date].

Your rating affects which [service providers/team members] we work with and what we change in our process. When you rate us, you're directly influencing your next experience.

How likely are you to use [service] again?

[1-10 scale with clickable numbers]

Everyone who rates us gets [incentive]. I'll also send you a personal update in 30 days showing exactly what we improved based on your score.

[Your name]

Neutral, in-app pop-up

Headline: 

Thanks for using our app!

Body: 

Your voice carries weight in the app store.

2-minute review?

[Rate now →]

[Remind me later]

Review thank you

Thanks for rating [app/product]. Your [incentive amount] is ready:

[Claim reward]

Link expires in [X days].

How to craft a winning customer incentive program

Read the article

Step 3: Incentivize customer reviews

If a marketer only reads one section, this is it. Here's how to run a compliant review incentive program.

Choose the right incentive

Gift cards encourage reviews from a wide range of people and are easy to distribute at scale.

Charitable donations can reduce fraud from people just looking for a quick payout.

Discounts or swag appeal to existing customers but may attract only those likely to leave positive reviews. Use caution. This approach could break FTC rules or create false impressions.

Pick the right incentive amount

You want an amount that encourages action without breaking the bank. Consider the ask. A detailed, 10-minute review warrants more than a quick star rating. Match the incentive to the effort required.

Automate the flow

Here's what an automated incentive flow might look like:

Customer interaction → Survey invite → Completes survey (receives reward) → Follow-up email (asks for review, no extra incentive promised) → Review submitted → Surprise thank-you gift sent

This workflow will help minimize your costs and give reviewers fast rewards. To set this up:

1. Trigger the ask after a key moment. This could be a purchase, service call, or survey completion. Some survey platforms integrate directly with review sites like G2.

2. Automate follow-ups. If the customer doesn't write a review, send a reminder after they've had time to use your product. Tools like Mailchimp or Constant Contact can handle this.

3. Automate reward delivery. Platforms like Tremendous let you send gift cards at scale. Reviewers choose from 2,500+ options, and Tremendous handles the logistics.

Step 4: Share reviews with your team

Customer reviews aren't just for generating new business. They reveal what customers love and where you can improve.

Share reviews with the right people:

• Service feedback? Tell your support team.

• Comments on packaging? Loop in shipping.

• UI critiques? Send to product.

This also has the side benefit of making coworkers happy when they see positive feedback.

Step 5: Respond to reviews

Whether positive or negative, a customer review is an opportunity to display your company’s brand and values.

• Negative reviews: Investigate the complaint. If possible, fix the underlying issue. Then reply. Be understanding and make the customer feel heard. Explain how you're addressing the situation and encourage them to contact support.

• Positive reviews: These customers are your advocates. Thank them and explore other ways they might engage with your brand.

How to build a customer referral program

Read the article

The bottom line

Despite being controversial, researchers found that 76% of consumers are motivated by incentives to write reviews. If you're fair, transparent, and follow platform rules, you can generate authentic word-of-mouth at scale.