Types of Discounts: Why Some Work, Some Fail, and What Shoppers Really Respond To

Most brands think discounted prices only do one thing: lower the price. But the psychology behind discounting is far more complicated.

A discounted-from-high-price product can actually feel more premium than a product that’s simply priced low from the start.

Why? Because the original price becomes a silent signal.

A high anchor tells shoppers, This is quality. This is special. This is the kind of thing people splurge on. The discount then sweetens the deal by making that level of quality feel accessible.

In other words, the price you cross out matters just as much as the price you keep.

This article breaks down the psychology behind types of discounts, the risks of overusing them, and how to build a discount strategy that boosts sales without eroding your margins or your brand.

Let’s get into it.

The three types of prices

Before we dive into discount formats, there’s one thing most brands skip, and it’s the reason so many promotions miss the mark. 

To understand what a discount does, you have to understand what a price is. 

And in that story, there are three characters that shape every buying decision: the reference price, the reservation price, and the asking price.

Let’s break them down.

Reference price

A reference price is the mental benchmark shoppers carry around with them, usually without realizing it. It guides almost every pricing judgment they make.

Some items come with a crystal-clear reference price. If you buy the same $3 coffee every morning, you know exactly what it should cost. If it goes up by 75¢, you feel it immediately.

But other categories? The reference price is basically a guess.

Walk into a grocery store and look at clementines. You might know that they’re “usually around a dollar-ish per pound,” but that’s about it. If the price jumps to $2.20, it feels wrong—even if you can’t articulate why. If it drops to $0.25, suddenly clementines become the best decision you've made all week.

That’s the power of the reference price: it’s the compass shoppers use to navigate value, even when the compass is wildly inaccurate.

And sometimes, it works against you. Ever gone from your usual $3 drip coffee to a specialty café and suddenly found yourself staring at an $8 pumpkin-spice-something? Your reference price followed you in the door. And it did not approve.

Brands can’t control a customer’s internal benchmarks… but they can guide them. Five ways marketers shape reference prices without ever touching the product:

• Show the original price next to the discount. It reinforces the “before/after” moment.
• Introduce one intentionally pricey product to make the others look more reasonable.
• Highlight competitor pricing—especially if yours comes out favorably.
• List products highest to lowest. The first price anchors everything that comes after.
• Place your price next to a larger number (like “compare at $299”) to create perspective.

Reference prices are powerful, but they’re also fragile. Which means a well-framed discount can shift perception instantly if you set the stage correctly.

Reservation price

If the reference price is what a shopper expects to pay, the reservation price is what they’re willing to pay—their personal ceiling.

This number bends depending on mood, context, motivation, and a dozen other invisible levers. It’s shaped by utility: “Is this worth it to me, right now?”

And utility is both math and emotional.

Maybe the shopper is hungry, tired, busy, or craving the exact thing you're selling. Maybe they have a gift card. Maybe they’ve been thinking about this purchase for months. Maybe they’re shopping from bed at 1 a.m. because insomnia and retail therapy have formed a toxic friendship.

All of that changes their reservation price.

Because so many factors influence it, raising a reservation price directly is almost impossible, but you can expand the perceived value supporting it.

Ways brands subtly increase a customer’s willingness to pay:

• Emphasize quality to justify a higher ceiling.
• Differentiate clearly—unique features raise perceived worth.
• Bundle products or add-ons to amplify total value.
• Use social proof so customers expect more satisfaction from the purchase.
• Introduce scarcity or limited-time access to make stretching the budget feel necessary.

The higher the perceived value, the more customers feel justified stretching toward full price—before any price reductions or discount offers enter the picture.

Asking price

Finally, we get to the number brands actually control: the asking price.

This is the official price tag. And yes, it’s tempting to adjust it whenever you need a boost. But the asking price carries more weight than brands often realize.

Because the moment you publish a price, you’re not just telling customers what something costs. You’re telling them:

• how premium the product is
• how confident you are in its value
• how it compares to competitors
• what kind of brand you intend to be
• whether shoppers treat you like a retailer, premium player, or bargain outlet

A price that’s always lower than everyone else’s might win short-term conversions, but it also signals “budget option,” whether you intend it or not.

A price that’s always discounted eventually becomes meaningless. Customers stop believing the “original” price was ever real.

A price that’s higher than competitors but poorly positioned feels arrogant.

But framed with the right value proposition? It suddenly feels justified.

None of these outcomes are inherently good or bad. They’re simply proof of one truth: Price is never just a number. It’s a message.

Which is why discounts shouldn’t be reactive—they should be intentional. Because every time you change the asking price, you’re rewriting the story your brand is telling.

The psychology behind discounts

There’s a reason discount offers remain one of the most reliable levers in commerce: they taps directly into how the human brain makes decisions. The instinctive, feelings-first, dopamine-chasing shoppers who want to believe we found a great deal.

At its core, a discount gives shoppers something precious: a built-in comparison point. $120 might feel expensive. But $120 marked down from $240? Suddenly that same item becomes a steal, and those shoppers feel like loyal customers getting special deals.

This is why brands lean heavily on percentage-based discounts, discount codes, and flash sales. They don’t just lower the cost—they reshape how we perceive the cost. Discounts tell a story in a single line: Here’s what it was… here’s what it is now… look how smart you are for grabbing it.

It’s consumer psychology boiled down to a simple equation: anchor high, sell low, make the customer feel victorious.

Emotional and neurological responses

A good deal literally lights up the brain. Neuroscientists have tracked it: the moment shoppers realize they’re saving money, the brain releases dopamine, the neurotransmitter responsible for pleasure and reward.

Here’s what’s happening under the hood:

• Dopamine hit (pleasure/reward): Discounts activate the brain’s reward pathways, creating a small burst of dopamine—the same neurotransmitter responsible for motivation and excitement. 
• Oxytocin boost (emotional bonding): Saving money can trigger oxytocin, the “feel-good” hormone associated with trust and connection. That rush doesn’t just make the purchase feel positive, it strengthens the shopper’s emotional tie to the brand that gave them the deal.
• Lowered cortisol (reduced stress): Discounts make decisions feel safer. When the financial risk feels lower, stress decreases. The shopper becomes more relaxed, more open, and more confident that they’re making the right choice.

When a discount is framed as exclusive discounts, limited-time offers, or a buy one get one promotion, the emotional payoff is even stronger. Because these discount strategies make them feel limited, unexpected, or cleverly disguised as a “find,” creating a hit of emotional gratification that everyday pricing can’t compete with.

Cognitive biases and framing

Underneath the emotions sits a stack of cognitive biases quietly steering the shopper toward checkout. Here’s how those biases influence discount behavior:

• Anchoring effect: The original price becomes the shopper’s mental anchor. Every discount is judged against that anchor, which makes the reduced price feel more valuable. A $200 dress feels luxurious when it’s “marked down from $400”—even if $200 was always the real intended price.
• Loss aversion: People hate losing more than they love winning. This is why framing discounts around avoiding a loss (“Don’t miss out on saving $50”) can be more compelling than highlighting the gain.
• Urgency & FOMO: Limited-time offers, countdown timers, and low-stock warnings tap into our fear of missing out. The threat of scarcity triggers faster decision-making and higher conversions.
• Perceived value shift: Discounts reshape how customers feel about spending. They make purchases feel justified, responsible, and even virtuous. A splurge becomes a smart move.
• Endowment effect: People place more value on items they feel they already “own.” This is why adding something to a cart increases the likelihood of purchase, and why discounts can make that sense of ownership crystalize faster.

A classic example? The mattress industry. Those 100-night free trials aren’t about comfort—they’re about the endowment effect. By the time the trial ends, customers already feel like the mattress is theirs. Sending it back would feel like losing something… which circles right back to loss aversion.

When discounts backfire

For all the psychological power discounts hold, there’s a darker side marketers eventually run into: the slow, quiet way discounts reshape customer expectations. 

Discounts can damage customer retention if overused.

If the customer learns that waiting always leads to a lower price, they will.If full price rarely appears, full price stops feeling real.If discounts replace value, customers become bargain chasers rather than repeat customers.

There’s a concept in psychology called effort justification, and it explains a lot about why discounts can backfire, especially in higher-consideration purchases.

The idea is simple: People value things more when they have to work for them.

When a buyer has to:

• dig into your product
• compare it against alternatives
• justify it to a team
• get budget approval

…they become more emotionally invested in the outcome. Their effort creates ownership. And that ownership becomes commitment.

But when you drop the price too easily, you short-circuit that whole process.

• The buyer no longer needs to justify. 
• They no longer need to advocate.
• They no longer need to “earn” the deal.

The first time you run a sale, it feels like a growth unlock. The tenth time? It starts to feel like your customers are only showing up when there’s a flashing red price tag.

This is where the long-term cost creeps in: customers recalibrate their internal reference point. The sale price becomes the real price. Full price becomes the “are you serious?” price.

Overuse also encourages:

• margin erosion
• excess inventory buildup
• dependency on promotions
• reduced profitability

And once that mental switch flips, it’s incredibly hard to undo.

Discount types

The following discount types aren’t just tactics, they’re levers that influence behavior, purchase intent, loyalty, and long-term perception.

Let’s walk through each one and what makes it effective.

1. Percentage and Fixed Amount Discounts

Percentage and dollar-amount discounts are the oldest tricks in the book, and still the most widely used because they’re easy to understand, easy to communicate, and easy to execute. 

But “simple” doesn’t mean “boring.” These discounts tap into anchoring, perceived value, and the shopper’s instinct to compare numbers quickly.

Percentage reductions shine when you’re dealing with higher-priced items. Why? Because humans are terrible at math, but very good at reacting to big numbers.

• 20% off a $200 item looks more dramatic than
• $20 off a $200 item, even though the savings are identical.

Percentages create an emotional jolt, especially when the number is 30% or higher. And the best part? Percentages travel well across product categories. They’re recognizable at a glance and require zero explanation.

Percentage-based deals work best for:

• High-ticket items
• Categories where customers comparison-shop
• Seasonal events where shoppers expect “big” numbers
• Brands that want to maintain premium positioning but still offer promotions

Fixed amount discounts, (AKA dollar-off discounts) do the opposite: they work hardest at lower price points. When the price tag is small, the brain can’t “feel” percentages as well.

• $10 off a $50 order lands harder than
• 20% off a $50 order, even though they’re the same.

Fixed discounts win because customers don’t have to calculate. They see the savings instantly. That’s especially powerful for impulse buys, lower-cost consumables, and everyday items.

Dollar-amount promos work best for:

• Lower-priced products
• Cart-level incentives (e.g., “Get $15 off $60”)
• New customer welcome offers
• First-time buyer nudges

2. First-Time Customer Discounts

A first-time customer discount is like rolling out a red carpet, but one you can only lay down once. It’s meant to break friction, reduce risk, and give shoppers the final nudge to hit “buy.”

But the mistake most brands make? They use it to acquire customers and forget to follow it with retention strategy.

Without a path forward—email flows, re-engagement, cross-sells, loyalty benefits—your “new customer offer” becomes a revolving door of one-and-done buyers who came for the discount and left for the next one.

When used correctly, though, first-time discounts:

• Lower the psychological barrier of trying something new
• Generate quick conversion wins
• Bring customers into your ecosystem (the real prize)
• Let you showcase value through product experience

Just remember: if your second purchase rate is low, no discount can save you. First-time offers should be the beginning, not the whole relationship.

3. Loyalty Discounts

Loyalty discounts aren’t really about money—they’re about recognition. They tell customers, “You matter more than someone who just walked in the door.”

Strong loyalty incentives:

• Increase purchase frequency
• Foster emotional connection
• Reward repeat behavior
• Make customers feel seen and appreciated

This is where tiered programs shine. When shoppers unlock bigger benefits by engaging more deeply (more points, more purchases, higher tiers), your discounts become earned. That makes them feel more valuable and increases retention.

Loyalty discounts work best when:

• You frame them as exclusive
• They’re tied to milestones (anniversaries, birthdays, tier upgrades)
• They feel personalized, not automated

The secret: make customers feel like insiders, not coupon collectors.

4. Seasonal Discounts

Seasonal discounts work because they align with moments when shoppers naturally want to spend. Back-to-school, Black Friday, summer clearance, holiday gifting—these are cultural triggers.

Customers expect discounts during these windows, which means you can:

• Ride existing demand
• Clear seasonal inventory
• Tie promotions to bigger shopping narratives
• Boost conversion rates without seeming “desperate”

And unlike evergreen promotions, seasonal events don’t train customers to delay purchases because the timing is predictable and limited.

Seasonal discounts are especially powerful for brands with:

• Seasonal inventory
• Gifting-friendly products
• Fashion or consumable cycles
• Big moments where timing matters (Jan 1 wellness, spring cleaning, etc.)

5. Flash Sales & Limited-Time Offers

If discounts had an adrenaline category, flash sales would win. Flash sales create:

• urgency
• scarcity
• FOMO
• impulse decisions

A flash sale tells the customer: “You don’t have time to think about this. If you want it, grab it now.”

That emotional velocity is why countdown timers, 24-hour promos, and “only 3 hours left” banners perform so well.

Flash sales are ideal when:

• Launching new inventory
• Clearing old inventory fast
• Activating lapsed customers
• Boosting short-term sales during slow periods

Just don’t run them too often or you’ll accidentally train customers to wait for the next one.

6. BOGO Discounts

Buy-One-Get-One deals are powerful because they flip the psychology from “spend money” to “get more.” Customers feel like they’re being rewarded simply for participating.

BOGO works well for:

• Consumables (snacks, supplements, skincare)
• Products with high margins
• Items people already buy in multiples
• New customer onboarding (“try two flavors instead of one”)

The hidden benefit? BOGO deals increase product usage, which increases the likelihood of reordering.

7. Bundled Discounts

Bundles can increase AOV, help customers make better purchase decisions, clear inventory, and introduce shoppers to products they wouldn’t buy individually.

They tap into two powerful psychological levers: value perception and decision reduction.

There are two core types: 

• Multi-SKU bundles mix different items (e.g., three different teas). Great for variety, discovery, and cross-selling.
• Single-SKU bundles group multiples of the same item (e.g., a 6-pack of socks). Great for simplifying inventory and appealing to repeat buyers.

Within those categories, there are many other bundle types. Here are some common types of bundles, and when they work best:

• Build-Your-Own Bundle: Customization transforms decision fatigue into excitement. When shoppers can mix and match scents, flavors, or formats, they feel in control—and spend more.
• Stock Clearance Bundle: Pair slow-moving inventory with bestselling or highly desirable items. This moves product without forcing steep discounts that devalue your brand.
• Subscription Bundle: Bundles are a perfect gateway into recurring revenue. Customers feel like they’re getting a deal upfront, and you get predictable retention on the backend.
• Free Gift With Purchase Bundle: This might be the most beloved bundle type of all. A free shaker with protein powder, a travel-size serum with a skincare kit. It’s an easy upsell that feels like a bonus instead of a discount.
• Routine or Regimen Bundle: Some products are simply better together. This bundle type removes guesswork (“Which serum goes with which moisturizer?”) and gives customers a ready-made solution.

If you run a Shopify store and want to start bundling without headaches, Simple Bundles is one of the best tools available.

The app lets you build any kind of bundle — from fixed two-product sets to mix-and-match packs or multipacks — without messing up your core inventory or checkout flow.

Bundles created with Simple Bundles stay fully inventory-synced and break down into individual SKUs for fulfillment, which means no overselling or surprise stockouts even if you use 3PL or multiple warehouses. 

8. Volume-Based Discounts

Volume discounts reward customers for buying more of the same item. They’re ideal for high-usage categories where repeat purchase is guaranteed.

Think:

• Supplements
• Household goods
• Pantry items
• Office supplies

The appeal is simple: customers save more when they buy more. And brands win because they secure larger upfront orders and reduce fulfillment costs.

9. Tiered Discounts

Tiered discounts introduce gamification into shopping. The more the customer spends, the better the deal becomes.

Examples:

• Spend $50 → get 10% off
• Spend $100 → get 15% off
• Spend $150 → get 20% off

Shoppers naturally anchor themselves to the next tier. “I’m only $18 away from the higher discount” is one of the most profitable sentences in ecommerce.

10. Threshold Discounts

Threshold discounts trigger once a shopper hits a specific cart minimum—usually applied to the entire order. These are different than tiered discounts because the offer can change depending on the threshold the customer meets.

Examples:

• Get $20 off when you spend $100
• Free shipping at $75
• 15% off orders over $200

And customers love them because they feel like “earning” the deal.

Dollars vs percentages

If there’s one pricing debate that shows up in every marketing team’s Slack channel, it’s this one: Should we frame the discount as dollars off or percent off?

Here’s how to think about it: Shoppers respond to the biggest-looking number—no matter what format it comes in.

If you tell someone they’re getting 30% off, that feels juicy. If you tell them they’re getting $2 off, that feels… fine. Technically correct. Mathematically identical if the product is $6.67. But emotionally? Not even close.

Our brains gravitate toward the number that looks bigger, even if the actual savings are the same. That’s why we instinctively value “20% off” more than “$10 off” when the product is expensive, but flip the preference entirely when the product is cheap.

It's also why:

• 30% off a $40 item feels exciting,
• but 2% off a $40,000 car feels like an insult.

You could tell someone, “It’s $800 off,” and suddenly the deal snaps into focus. Same savings. Different framing. Massive difference in perception.

We’re not wired to do fast math. We’re wired to react to what feels meaningful.

So which discount format is better?

Both formats work. But neither works universally.

Percentages hit harder when:

• The original price is high
• The percentage is 20%+ (below that, people don’t feel it as strongly)
• You’re selling luxury or premium goods
• You want the discount to “look big” in marketing materials
• The goal is emotional impact, not rational calculation

Dollar amounts win when:

• The item is low-priced
• Customers want clarity over abstraction
• You’re selling everyday products (grocery, CPG, consumables)
• Cart-level incentives need to be simple (“$15 off $60”)
• You want shoppers to instantly understand their savings

How to optimize your discounts

Here’s how to use discounts intelligently, without falling into the trap of training customers to never pay full price again.

1. Believe in your price first

If you don’t believe your full price is justified, your customer won’t either.

Discounts become dangerous when they’re used to mask insecurity.

Customers can feel when a brand is discounting out of panic versus purpose. When a price is anchored in real value—quality, craftsmanship, results, experience—discounts become bonuses.

When you stand confidently behind your price:

• The discount reads as generosity, not desperation.
• Customers trust the original price more.
• The deal feels meaningful because the baseline value feels solid.

If the full price feels shaky, no discount will save you. If the full price feels fair, even a small discount becomes persuasive.

2. Let the buyer put in some mental effort before offering a concession

Before you ever offer money off, the buyer needs to care about what you’re selling. That only happens when they’ve invested some cognitive effort—when they’ve imagined the outcome, pictured the benefit, or evaluated the product’s role in their life.

In other words: Let them do the thinking first.

When customers…

• watch the product demo
• read the reviews
• compare alternatives
• picture themselves using it
• connect the purchase to their goals

…they become emotionally invested. And investment changes everything.

Once they’ve built a case in their own minds, even a small discount feels like a win. It’s the finishing push, not the entire reason for the purchase.

But if you offer a discount upfront?

They don’t have to justify anything. They don’t get the satisfaction of “earning” the savings. And the discount loses emotional meaning.

Effort creates buy-in. Buy-in makes discounts feel powerful.

3. Limit frequency and build predictability

One of the biggest discounting mistakes brands make is running promotions so often that they become white noise. When customers know a sale is always around the corner, they wait. And wait. And wait.

Predictability solves that.

When discounts are expected but rare, they become exciting instead of expected.

Examples that work:

• Seasonal sales (fall clearance, summer kickoff)
• Once-a-year blowouts (anniversary events, birthday sales)
• Holiday tie-ins (Black Friday, Mother’s Day, Lunar New Year)

Predictable infrequency creates a few powerful outcomes:

• Customers trust full price during non-sale periods
• Your margins stay healthy
• Sales feel intentional instead of reactive
• Shoppers look forward to events instead of expecting constant deals

Consistency teaches your customers how to behave. Give them stability and they won’t go hunting for discounts elsewhere.

4. Use discounts for segmentation, not for everyone

Blanket discounts look easy, but they’re margin killers. Smart discounting is designed for specific types of customers at specific moments.

Discounts should reward:

• High-value customers (keep your best shoppers engaged)
• Loyalty members (strengthens attachment to your brand)
• First-time buyers (lowers their risk enough to convert)
• Cart abandoners (nudges them back at the perfect moment)
• High-LTV prospects (win them early, reap the retention benefits)

Segmentation does two important things:

1. Protects your margins by preventing unnecessary discounts.
2. Makes discounts feel personal, which increases emotional impact.

Everyone shouldn’t get the same deal because everyone isn’t the same customer.

5. Make discounts part of a larger value story

You can make this happen by pairing discounts with moments of value, like:

• launching a new product
• releasing a limited edition
• introducing a bundle
• giving VIP customers an early-access window
• celebrating a milestone, like your brand’s anniversary

This reframes the discount as a celebration or reward, not a last-ditch attempt to move product. It signals to customers: “Something exciting is happening. You’re invited.”

Pairing price cuts with narrative moments increases perceived value and avoids devaluing the brand. It also gives customers a reason to believe in the offer.

6. Provide alternatives to discounts

Sometimes the best discount is… not a discount.

Not all incentives require lowering your price. Plenty of value-driven benefits feel just as rewarding without slicing into your margin.

Alternatives that still deliver “wow”:

• Free shipping (one of the most powerful conversion boosters)
• Extended warranties or guarantees
• Bonus samples or surprise gifts
• Early access to new products
• Double loyalty points
• Exclusive content or guides
• VIP-only access or perks

These give customers a sense of getting more without cheapening the product.

The real goal isn’t to lower the price—it’s to increase the perceived value. And sometimes the best way to do that is to add, not subtract.

Discount examples

The smartest brands layer different types of incentives together: bundle pricing plus percentages, loyalty rewards plus early access, flash sales plus thresholds.

Here are a few examples that show how different discount structures can work in the wild—and what you can borrow for your own playbook.

Westman Atelier – Bundle + percentage discount

Westman Atelier’s gift sets are a clean example of how to combine bundled discounts with a percentage-off incentive.

Instead of simply knocking 20% off a single hero SKU, they used Simple Bundles to:

• curate products into ready-made sets,
• price the set lower than the sum of the individual items,
• and then layer in a visible “X% off” framing on top.

Why this works:

• Bundling reduces decision fatigue. Customers don’t have to figure out what “goes together”—Westman does it for them.
• The percentage discount makes the value feel explicit. Even if the customer never checks the math, seeing “Save 20%” anchors their perception.
• It nudges higher AOV. Shoppers feel smart for buying the set instead of a single item, so they spend more while still believing they’re being financially responsible.

What you can steal:

• Turn your best-selling combinations into bundles.
• Show the “compare at” price plus the discounted bundle price.
• Use a percentage label to make the savings obvious, even if customers don’t do the breakdown.

Silk & Snow – BOGO and free bundle offer

Silk & Snow leans into BOGO-style bundling with their mattresses by offering a “free sleep bundle” with purchase. The smart part isn’t just the giveaway—it’s how they present it.

On their dedicated landing page:

• Iconography visually calls out everything included (pillows, protectors, sheets, etc.).
• Product thumbnails are tagged so shoppers instantly see which items qualify for the free bundle.

Why this works:

• The value feels tangible. Instead of saying “free bundle,” they show it piece by piece.
• It reframes the purchase as a package deal. You’re not just buying a mattress; you’re upgrading your entire sleep setup.
• It reduces friction. Shoppers don’t have to worry about buying add-ons later, they feel “set” in one purchase.

What you can steal:

• Use small icons or badges on collection images to highlight included freebies.
• Make the “what’s included” section visually rich, not just text.
• Position the free bundle as a complete solution, not just extra stuff.

West & Willow – Tiered discount on the homepage

West & Willow uses a tiered discount structure: the more customers add to their cart, the bigger the discount gets. And they don’t bury this—they put it right in the homepage banner, alongside images of their main products.

Why this works:

• The discount becomes a game. Shoppers immediately start calculating how to “unlock” the next tier.
• The visuals make it real. By showing multiple product options, they’re planting ideas: “Oh, I could grab one for me and one as a gift.”
• It anchors cart size. The baseline expectation shifts from “one item” to “multiple items.”

What you can steal:

• Put tiered offers front and center—don’t hide them deep in the cart.
• Pair the offer with product imagery that showcases variety (different colors/styles/uses).
• Write copy that subtly nudges: “You’re only X away from your next tier of savings.”

Dynamite – Loyalty discounts that show up where it matters

Dynamite’s “Collectif” loyalty program rewards members with points that can be converted into discounts. Nothing new there on its own, but the UX execution is what makes it effective.

On the mobile app or when logged in:

• Available points are clearly displayed at checkout.
• Applying them to the order is one click away.
• Customers can see both their current balance and the impact on the total.

Why this works:

• The discount feels effortless. No hunting for codes. No remembering login details.
• It reinforces the value of being a member. Every cart becomes a reminder: “You earn as you shop.”
• It pushes conversion at the most important moment. Right when friction is highest (the cart), the discount is most visible.

What you can steal:

• Integrate loyalty rewards directly into the cart UI instead of burying them in a separate dashboard.
• Show “You have $X in rewards available” as a standalone line item.
• Make redemption feel like a treat, not a chore.

Alo – Flash sale plus loyalty-first access

For its anniversary, Alo launched an “Aloversary” flash sale where everything was 30% off—already a strong hook. But the real play was in how they combined flash sale urgency with loyalty and email strategy.

The structure:

1. Loyalty members got early access to the sale.
2. An email campaign invited subscribers to join the loyalty program for first dibs.
3. The sale then opened to everyone else a day later.

Why this works:

• Loyalty members feel legitimately special. They weren’t just given points—they were given time advantage.
• Email subscribers had a reason to convert into loyalty members. The discount became a growth engine for the program itself.
• The flash sale still felt big and public. Once it opened to everyone, it drove urgency and FOMO at scale.

What you can steal:

• Tie your biggest sales to loyalty and email growth.
• Offer early access, not just extra discounts, to your best customers.
• Use language that reinforces status: “Members shop first.”

These examples all share one thing in common: None of the discounts are random.

They’re structured. Intentional. Layered with UX, messaging, and psychology.

The Bottom Line: Discounts Are a Tool, Not a Strategy

There’s nothing inherently wrong with offering discounts. They’re a powerful psychological and economic lever that can boost revenue, bring in new customers, and reward loyalty.

But discounting must be handled with intention.

If bundles are part of your strategy after reading this—and they should be—start by creating a simple two-product bundle or “starter duo.” It’s the fastest, safest way to increase AOV without messing up your margins. 

Tools like Simple Bundles make it effortless, so you can test your ideas without slowing down your team.