For brands considering joining BOOM to offer exclusive discounts to members, one common concern is whether they can afford both the discount and the associated advertising cost. Some businesses fear that offering a discount will cut into their margins too much or that they won’t see a strong enough return on investment (ROI). However, extensive research and real-world case studies show that discounts, when implemented strategically, drive customer acquisition, increase average spending, and enhance long-term loyalty.
In this blog, we’ll explore key studies and data that highlight why discounting isn’t just about giving away revenue, it’s a powerful marketing strategy that builds brand awareness, drives conversions, and fosters customer retention.
Case Study #1
How Upstate Used Discounts to Increase Average Order Value by 15% and Retain More Subscribers
One of the biggest concerns for brands is that offering discounts will lead to lower profits per sale. However, the experience of Upstate, an online retailer, proves that discounts can actually increase Average Order Value (AOV) and retention.
Upstate ran a test using targeted promotional discounts on first-time purchases. They integrated coupon-based automation, tracking how customers responded to different discount levels. The results were impressive:
AOV increased by 15% when customers used a coupon.
Customer retention improved by over 60%, meaning customers, who used a discount, were more likely to return and make repeat purchases.
This case study shows that the right discount strategy doesn’t just drive short-term conversions; it increases the lifetime value of customers. Offering an exclusive discount through BOOM allows brands to engage new customers, many of whom will become repeat buyers.
(Source: Autoship.cloud)
Case Study #2
Targeted Discount Offers Lead to a 37.2% Increase in Customer Spend
A study conducted by the Stanford Graduate School of Business explored how targeted discounts influence customer spending behaviour.
The research found that customers who received a personalized discount offer increased their spending by 37.2% on average.
Even more interestingly, many customers who didn’t redeem the discount still increased their spending, likely because the discount acted as a form of advertising, reminding them of the brand and prompting additional purchases.
What does this mean for brands? Exclusive discounts don’t just benefit those who redeem them - they create a marketing effect that increases sales across the board. By providing a discount through BOOM, brands gain visibility and engagement without having to pay for expensive advertising campaigns.
(Source: Stanford GSB)
Case Study #3
Exclusive Discounts Improve Customer Loyalty and Reduce Churn
Many brands worry that offering discounts might attract deal-seekers who won’t return after redeeming an offer. However, research suggests the opposite.
A study from AIContentfy showed that exclusive discounts:
Boost customer loyalty by making customers feel valued.
Reduce churn because customers who perceive they are getting a deal are less likely to switch to competitors.
Encourage repeat business, as customers feel like they are part of an exclusive community when they access members-only pricing.
This is a crucial takeaway for brands working with BOOM. Instead of thinking of a discount as a one-time loss, consider it an investment in customer retention. Once customers experience the savings and benefits, they are more likely to stay engaged, return for future purchases, and even recommend the brand to others.
(Source: AIContentfy)
Balancing Discounts and Advertising: A Smarter Approach for Brands
Brands often debate whether to invest in advertising or promotions. However, the most effective approach is a combination of both.
A report published by Marketing Dive found that media spending on advertisements was 35% more effective than promotions in terms of long-term brand building. This means that while promotions can boost immediate sales, advertising helps sustain growth over time.
For brands partnering with BOOM, this presents a unique advantage:
BOOM provides a built-in advertising network. By offering an exclusive discount through BOOM, brands gain exposure to thousands of potential customers while keeping their advertising costs low.
Discounts create urgency and drive action. Advertising alone builds awareness, but offering an exclusive discount gives customers a reason to purchase now.
Measurable ROI. Unlike traditional advertising, where results can be difficult to track, discounts allow brands to see a direct revenue impact, making it easier to measure success.
When brands integrate BOOM into their strategy, they combine the power of advertising with the effectiveness of discounts, maximizing their return without unnecessary ad spending.
(Source: Marketing Dive)
Final Thoughts: Why Partnering with BOOM is a Win-Win for Brands
At BOOM, we understand that brands want to see real value from their marketing investments.
That’s why we provide a low-cost, high-impact solution where brands can:
Reach an engaged audience without expensive advertising fees.
Drive new customer acquisition through exclusive discounts.
Retain customers for the long term, increasing revenue over time.
Measure performance easily, seeing exactly how many customers engage with their brand.
The data is clear: discounting is not an expense—it’s a proven marketing strategy that drives sales, retention, and long-term brand growth.
Interested in learning how BOOM can help your brand? Get in touch with us today to explore how we can help you grow your business!
#BrandGrowth #CustomerLoyalty #SmartDiscounting #MarketingStrategy #IncreaseSales #CustomerRetention #BOOMPartner #ExclusiveDeals #EcommerceSuccess #BusinessGrowth #RetailMarketing #DriveRevenue #AdvertisingStrategy #ConsumerEngagement #BrandAwareness #DiscountMarketing #SalesBoost #MarketingROI #LoyalCustomers #SmartSpending #PromotionalStrategy
Comments