Brand building takes time, creativity, and consistent investment. Yet many companies undermine these efforts with aggressive discounts that train customers to wait for sales rather than value the brand itself. This creates a dangerous cycle that’s hard to break. Paul De Bonis, Managing Director of TLC Worldwide, has spent three decades helping companies escape this trap by creating customer incentives that build loyalty without sacrificing brand equity.
Making a Brand Truly Valuable
A catchy logo might catch your eye, but it’s not what keeps you coming back. “A brand is a promise,” Paul explains. “It’s what makes people choose one specific thing over another over the competition. Most importantly, it’s the trust, the experience, the emotional connection the top brands offer which keeps customers coming back every day.” Too many companies invest heavily in building strong brand identity only to throw it away with aggressive discounting. While these tactics might boost short-term sales, they train customers to wait for the next deal. Once consumers start thinking about your brand in terms of price rather than value, the damage is hard to undo.
Here’s how you can drive sales and loyalty without sacrificing your brand’s value.
Move Beyond Discounts
Constant promotions create a dangerous pattern. “It’s often a slippery slope that can cause a race to the bottom,” Paul warns. “These brands become successful at attracting deal seekers rather than loyal advocates, and ultimately long-term brand equity will always take a hit.” This approach might seem effective at first glance, as units move and revenue flows in. But beneath the surface, your brand’s foundation is cracking. You’re teaching consumers to value the discount, not your product. When every purchase decision hinges on “how much off,” you’ve lost the battle for brand loyalty.
Smart companies find better ways to drive sales without cutting prices. “Instead of training customers to expect continuously lower prices to get them in the store, leading brands are shifting to experience-led rewards that add value rather than strip it away,” Paul notes. The key is creating memorable moments that price cuts simply can’t match. “What’s more memorable? Do I go down the aisle and see all the products with a dollar off coupon, or a brand that’s offering me a free manicure or pedicure? How about a small cash rebate versus a free hotel night?” These experience-based incentives build emotional connections that outlast any temporary discount.
Reward Every Customer, Not Just the Few
Another common mistake is focusing exclusively on high spenders. “Too many brands focus on VIPs and leave everyone else behind,” Paul observes. “The problem is that loyalty is about the entire customer journey, not just those VIPs.” Similarly, sweepstakes might seem like a good alternative to discounting, but they reward only a handful of customers. “Today’s customers know very well that their chances to win are extremely low, and it often causes drastic falloff and a lack of personal connection,” Paul explains. Instead, focus on rewards that every customer can enjoy, creating broader engagement regardless of spending level.
Personalization Wins—Use Data to Make Incentives Relevant
The most powerful incentives feel tailored to individual preferences. “The best programs don’t just make you feel like it’s a bonus – they make you feel that it’s made for you,” Paul emphasizes. Using customer data smartly allows brands to match rewards to specific customer segments. Paul shares practical examples: “The retailer that rewards weekend shoppers with free coffee during the fall season. A skincare brand offering a free brunch experience. Or a credit card that offers special access to free appetizers at restaurants around your city.” These tailored incentives strengthen the customer relationship without ever mentioning a discount.
Strong brands don’t need to compete on price. They win by consistently delivering real value. “By replacing discounts with high perceived value rewards and rewarding every single customer in a way that leverages data to make it feel personalized, brands can drive loyalty without sacrificing their margin and brand equity,” Paul concludes. After three decades helping companies build stronger customer connections, Paul and his team at TLC Worldwide understand what works. “Smart marketing is about how to stand out,” he says. “Let’s create something unforgettable together.”
Connect with Paul De Bonis on LinkedIn to explore smarter brand-building strategies.
