As Black Friday looms and Christmas promotions roll out, inboxes are about to be flooded with deals, discounts, and rebates. It’s an annual ritual: brands racing to the bottom with cut-price offers in the hope of grabbing quick wins before year-end.
But here’s the uncomfortable truth, while discounts might drive short-term transactions, they rarely create long-term value.
The Discount Dilemma: Short-Term Gains vs. Long-Term Erosion
For years, consumer and B2B brands alike have leaned heavily on discounts to boost sales. And yes, they work – temporarily. A sharp rebate or seasonal offer can spike revenue and capture attention.
But the aftershocks tell a different story:
- Margin erosion: The more brands discount, the more customers expect it. Once you condition your buyers to wait for the next markdown, full price becomes the exception, not the norm.
- Commoditisation: Competing on price alone blurs differentiation. Your offering looks like everyone else’s, and customers simply chase the best deal.
- Customer distrust: Rebates and constant promotions can foster cynicism, customers wonder if they’re ever getting real value at the standard price.
In the B2B world, the stakes are even higher. Discounts and rebates often create anxiety around shrinking margins, sparking a race to the bottom rather than helping suppliers build partnerships or loyalty. They’re a transactional plaster on a relationship that should be built on trust, service, and added value.
Why Standing Out Matters More Than Ever
Today’s buyers, whether consumers or business decision-makers—are bombarded with choice. Competing on price isn’t just unsustainable; it’s invisible.
- Discounts no longer differentiate you. Everyone has them, especially around seasonal peaks.
- Value is the new battleground. Buyers want reasons to stay loyal beyond a lower invoice. They want consistent experiences, alignment with their values, and benefits that don’t evaporate once the sale closes.
In other words, price wins the race to the bottom; loyalty wins the marathon.
Loyalty as a Growth Strategy for 2026
Heading into 2026, the imperative for marketing, commercial, and sales leaders is clear: shift focus from transactional quick wins to relationship-led growth.
That means:
- Investing in customer loyalty programmes that reward engagement, advocacy, and retention.
- Aligning commercial strategy with customer value, so loyalty feels like a partnership rather than a gimmick.
- Equipping sales teams with tools to build long-term trust, instead of arming them with another rebate code.
Loyalty isn’t about ignoring revenue, it’s about driving predictable, profitable growth by reducing churn, deepening relationships, and creating advocates who buy more, stay longer, and recommend often.
The Leadership Call to Action
As you plan your 2026 commercial strategy, ask yourself:
- Are you conditioning customers to chase your discounts, or inspiring them to stay for your value?
- Do your offers build trust and differentiation, or do they quietly erode your margins?
- Is your sales team empowered to build loyalty, or just armed to discount?
Because while discounts deliver short-term spikes, loyalty delivers long-term wins. And in an increasingly competitive market, loyalty may well be the most valuable currency your brand can own.
👉 2026 can be the year your brand stops competing on price and starts competing on loyalty. The deals may come and go, but loyalty is what will last.
