We’ve written previously about the underlying science behind why discounts are such a powerful member/customer engagement tool. Aside from the rush of endorphins that comes from getting a good deal, evolutionary science tells us that our brains are hard-wired to conserve our resources and avoid inefficiencies. That’s why saving money is a universal desire.
So it’s no coincidence that virtually every retailer, airline, supermarket and restaurant offers a discount or rewards program. Most membership organizations understand the potential impact of offering a discount program as part of their membership perks because of how such programs drive member retention (among other favorable behaviors.)
With the increasing popularity of using discounts as rewards and incentives, it’s not surprising that more and more discount programs have sprung up, trying to sell their white-label discount network (also called a private-label discount network) to member associations, trade organizations and other membership-based groups.
But not all discount networks work the same. And not all can drive member retention and boost acquisition rates.
If your organization is considering a white-label discount program to help you connect, attract and engage your members, good for you. It’s a wise decision, as proven by the many organizations that have discovered growth through offering discount programs.
Once you’ve decided to offer a discount program, what criteria should you use to find the best one suited for your organization? As the competition for your attention intensifies, so too will the intensity of the competing voices who are trying to win your business.
As a result, be prepared to encounter some rather creative methods with how discount networks compare themselves to their competitors. Here are some of the tricks some companies use to trick you, and how they spin their message to get you to sign on the dotted line.