WTF is an incentives marketing strategy? | How brands are merging loyalty programs and promotions to build long-term customer value

""CMOs and CEOs tell us that they want to discount less, but that only happens when they're thoughtful and lean into it," said Christoph Gerber, co-founder and CEO at incentives platform Talon.One. "We frequently see across otherwise sophisticated businesses that discounts and loyalty are a neglected part of the marketing estate. That C-suite neglect only breeds more discounting. It's this paradox of needing to lean in to do less.""

"Commonly used tactical tools like discounts, coupon promotions and loyalty rewards no longer resonate as well with consumers who have grown accustomed to and often demand personalized, seamless shopping experiences. "If anything, these traditional tactics are too effective in that both customers and businesses have flocked to them," said Sam Panzer, director of industry strategy at Talon.One. "From a business perspective, there's no differentiation left in simply having a loyalty program. And from a customer perspective, the customer has moved so much toward value seeking.""

Brands should replace siloed loyalty and promotion tactics with a unified incentives marketing strategy that leverages customer data and personalization. Executives aim to reduce blunt discounting by designing thoughtful incentives that preserve margins while increasing lifetime value. Common tactical tools like coupons and generic loyalty rewards have become undifferentiated and fail to meet consumers' expectations for personalized, seamless experiences. A unified incentives approach aligns loyalty, promotions, and discounts to lower customer acquisition costs, boost retention, and create predictable revenue streams. Implementing targeted, data-driven incentives requires strategic attention from the C-suite and integrated technology to orchestrate offers across channels.

Read at Digiday