MARKETINGWeeks to result

A/B Incentives

Increase show rates with personalized incentives

Problem it solves

weak market positioning

Best for

Businesses with high lead volume

Not ideal for

Small businesses with limited resources

Overview

Why this framework exists

A/B Incentives is a strategy to increase show rates by offering personalized incentives to leads. The strategy hinges on reciprocity, where leads feel like they owe the business a favor after receiving a gift or incentive. The incentives can be tailored to the lead's preferences, such as choosing between two products or services.

Core principles

3 total
  1. Reciprocity is a powerful motivator for leads to show up and close deals.
  2. Personalization increases the effectiveness of incentives.
  3. Leads should be given choices to increase their sense of control and agency.

Steps

3 steps
  1. Determine the incentive
    Determine what incentive to offer to leads, such as a gift or discount.
    Pro tipMake sure the incentive is relevant to the lead's interests and needs.
    WarningAvoid offering incentives that are too expensive or difficult to fulfill.
  2. Tailor the incentive to the lead
    Tailor the incentive to the lead's preferences, such as choosing between two products or services.
    Pro tipUse data and analytics to determine the lead's preferences and interests.
    WarningAvoid being too pushy or aggressive in offering incentives.
  3. Communicate the incentive effectively
    Communicate the incentive effectively to leads, such as through email or phone calls.
    Pro tipMake sure the communication is clear and concise.
    WarningAvoid using high-pressure sales tactics.

Checklist

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Examples

2 cases
Brick-and-mortar beauty chain

A brick-and-mortar beauty chain offers a free product to leads who schedule an appointment within 5 minutes of opting in.

OutcomeThe chain sees an increase in show rates and close rates.
Insurance company

An insurance company offers a discount to leads who schedule an appointment within 24 hours of opting in.

OutcomeThe company sees an increase in show rates and close rates.

Common mistakes

3 traps
Offering incentives that are too expensive
Offering incentives that are too expensive can be costly and unsustainable for the business.
Not tailoring the incentive to the lead
Not tailoring the incentive to the lead's preferences and interests can reduce its effectiveness.
Being too pushy or aggressive
Being too pushy or aggressive in offering incentives can turn off leads and reduce the effectiveness of the strategy.

Origin story

How this framework came to be

The concept of A/B Incentives was developed by Alex Hormozi, who found that offering personalized incentives to leads increased show rates and close rates. The strategy is based on the principle of reciprocity, where leads feel obligated to return a favor after receiving a gift or incentive.

Source

Traced to primary
Source · BOOK
$100M Playbook Lead Nurture How to get more leads to
Alex Hormozi · 2025
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