Beyond the Bargain: How Brands can Retain Burned Out Consumers

By: Lena Kleinwechter, Customer Engagement & Loyalty Strategist at Talon.One

The biggest shopping season of the year is among us, and with it comes the bombardment of promotions through email, social media, text and in-person mail. Black Friday and holiday shopping were once defined by consumer excitement with limited-time discounts that encouraged shoppers to form lines hours before stores opened.

While discounts continue to grow and start earlier each year, a quieter shift is happening: consumers are tuning out. Customers are experiencing “discount burnout” as retailers continue to rely on overused discounting to engage and retain customers. A report by AlixPartners found that the importance consumers place on price has dropped by 13% compared to 2024. Customers are becoming more selective about which brands they interact with, focusing far more on brands that provide value year-round and relying less on large markdowns. This shift is a clear sign that consumers are searching for authentic value and personalized experiences that go beyond holiday sales.

The Price of Year-Round Markdowns

Overdiscounting hurts brands in more ways than one. The overuse of discounts has made discount-driven campaigns significantly less effective. By engaging customers only through promotions, brands are diluting their offerings and conditioning customers to only purchase when discounts or promotions are available. This “next sale” mentality keeps companies trapped in a reactive cycle where customer engagement depends on lowering prices instead of increasing value.

This approach weakens brand value for customers because they begin associating a company solely with markdowns. Eventually, customers question if the original price reflects the true value of the product, making it harder for them to compete on different aspects like quality, durability or experience. Over time, this erodes customer trust and creates the assumption that a better discount is always around the corner. This shifts the customer mindset from excitement to skepticism, undercutting true brand loyalty.

The financial consequences can be daunting for companies. Heavy discounting can result in a “discount death spiral” that cuts directly into profit margins and leaves little to no room for investment into innovation and growth. Companies stuck in discount spirals are at the mercy of customer behavior. In challenging conditions, when spending slows, an overreliance on offers can leave companies especially vulnerable.

Even consumers are tired of the “next sale” strategy. According to a report by Alixpartners, service and experience have become two of the most important drivers of customer spending . Customers are no longer looking at price tags for purchasing decisions. Now they’re focused on finding a brand that can anticipate demands and provide a variety of benefits. This may not have always been the case and discounts only blurred and distracted the customer’s focus. By moving away from the “next sale” thought process, brands can think about the customer experience as a whole, aiming to become the solution to customer’s problems and frustrations through efforts such as seamless returns or high quality service.

Curing Discount Fatigue with a Personal Touch

With discounts and promotions out, what’s the next engagement strategy for retailers? Personalization.

Early on, personalization focused on inserting a name in an email or sending a one-size-fits-all discount code. However, as technology evolves, so does the opportunity to create shopping experiences that reflect unique preferences and behaviors. Customers now expect brands to use their data responsibly and proactively to deliver value that feels relevant and timely. In fact, companies that moved away from mass discounting toward personalized offerings create more value for their customers. A Harvard Business Review report with Talon.One found that of the organizations that started personalizing offerings, 62% say they’ve seen increased sales and 47% say it has increased customer loyalty as a result.

This demonstrates a brand recognizes who their customers are and what they care about. For example, a beauty brand might send simple replenishment reminders based on purchase frequency or a retailer could tailor promotions to local weather conditions. These moments reinforce that the brand understands customer needs on a deeper level, building reliability and trust. Companies that invest in strategies and tools for this have the key to unlock long-term engagement.

Retention Over Reaction: Playing the Long Game

Once you’ve delivered a customer their best moment, maintaining that relationship becomes far more valuable than chasing a quick conversion. Brands that are thriving in this environment have also shifted their focus from conversion to retention, which is a helpful long-term strategy for retailers.

To achieve customer retention, brands should think about customers as relational rather than transactional, and rely on gamifying the engagement to battle discount burnout. Companies should measure success through lifetime value and advocacy. Instead of giving customers instant but forgetful gratification, loyalty programs are built to encourage customers to continue doing an action in exchange for points, personalized offers or exclusive product drops. A number of fast-casual restaurants have revamped their loyalty programs to increase personalization offerings and deliver additional value to their customers. This personalization results in customers feeling recognized and rewarded for consistent engagement and encourages brands to think of long-term retention above short-term promotions. However, businesses should still be cautious of making strong personalization claims. These claims can make customers have unrealistic expectations and believe that offers will 100% match their wishes. When the first couple of offers don’t deliver an identical match, customers may be disappointed and see personalization attempts through their negative experience.

Redefining What Value Means

This blueprint should guide brands to avoid aggressive discounting as they head into the holiday season.

Brands should redefine what “value” means in the modern retail environment with new strategies and tactics. The goal is to understand customers enough to contextualize benefits and build programs that encourage patterns of behavior. By investing in personalization and long-term engagement, brands can build trusting relationships that keep customers coming back even without discounts. The brands that lean into transparent and authentic outreach will have a competitive advantage over others and build genuine relationships that retain customers after the sale banners come down.

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