blog, loyalty program

Why Partner Discounts May Hurt Your Loyalty Program

We all love a good discount. That’s exactly why companies may offer their customers external brand discounts and coupons if they sign up for their services. For example, consider a phone service company offering 10% off at Tesco or Topshop if you sign-up for one of their phone plans. Companies do this for a reason – by offering brand discounts, the hope is to attract and retain more consumers. The question is, how sustainable are discounts and coupons in a loyalty program?

The hard answer is this – offering brand discounts does very little for customer loyalty. While it might seem like a generous gesture, relying solely on brand discounts to generate loyalty will disappoint you. Keep on reading to learn more about brand discounts and alternative methods for effective loyalty programs. 

Reasons to Stop Using Discounts in Loyalty Programs

1. Chrome plug-ins like Honey can find better discounts

While you might think offering brand coupons and discounts give you a competitive edge, there could be tons of companies that could offer better brand discounts. Additionally, if you haven’t heard of Honey already, this Google Chrome plug-in scours the internet for coupon codes and discounts, offering customers the best deals. As such, offering brand discounts isn’t necessarily adding any extra value to your customers.

2. You don't foster any type of emotions

It’s no secret anymore that emotionally connected customers are the most loyal ones. In order to connect with customers, your program needs to offer rewards & experiences that will foster positive emotions. Your brand needs to show customers that you care and go the extra mile to provide value to their lives in a very special way. And let’s be honest, what is special about a bunch of discounts that any other program can offer?

3. You emphasize the wrong thing

Many companies who rely on brand discounts and coupons to attract customers fall into the trap of solely emphasizing this perk. But what about drawing attention to the quality of your services or how your company is aiming to make the world a better place? The more you place importance on these brand discounts, the less emotional connection you build with your consumers. By continually relying on brand discounts to keep customers around, you’re essentially telling customers to focus on the price tag more than anything else.

Emotional Loyalty as the Foundation for Loyalty Programs

If offering discounts and coupon codes are not the ultimate solutions to a successful loyalty program, what is? In this consumer-centric world where brand offerings are no longer a novelty, emotional loyalty allows you to differentiate yourself and helps you build an authentic connection with your customers. It’s the kind of loyalty that cannot be negotiated or bought.

For example, Stampix collaborates with companies worldwide to help them take their emotional branding to greater heights. Through personalised photos and messages, Stampix helps companies deliver these gifts to every customer.

Emotional loyalty relies on feeling and trust. It’s based on creating memorable and meaningful experiences for your consumers and using those experiences as a selling point for customers to come back every time. While you can scour the web for the best discounts and most coupon codes, those one of a kind memories that companies can create for their consumers are simply irreplaceable.


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