Do discounts just attract bargain hunters? How in-store experiences build Gen Z loyalty

You may have already asked yourself: how do you attract new customers without devaluing your brand?

The pressure to deliver quick wins often leads to a common solution: offer discounts to attract new customers. But many of us worry that these deals simply attract price-sensitive buyers who will never become loyal customers. We're left wondering if we're just training our audience to wait for the next sale.

A valid fear. 

When done wrong, discounts can silently harm brand equity and eat into profit margins. They can also create an expectation that full price is never worth paying. The challenge is to craft a discount that feels exclusive and meaningful, not just a race to the bottom.

So, how can you go about discounts? The answer lies in shifting your focus from a generic discount to a value-driven exchange built on community and identity. 

This is particularly crucial when marketing to an audience like Gen Z, who, despite being cost-conscious, also value authenticity and brand values. 

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From bargain hunters to brand advocates

Gen Z navigates their day from class or part-time jobs to coffee shops and quick shopping trips. Yes, they spend a lot of time online, but there is a special opportunity there for brands to connect with them in the real world. 

A targeted, in-store deal married with a unique experience can convert a casual browser into a loyal customer.

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What does a successful discount strategy look like?

1. Verify an exclusive community

Instead of a coupon code that can be picked up by "bargain hunter" websites, verify a consumer's identity at the point of sale. This ensures your offer is only accessible to your intended audience, like students or Gen Z. 

When a brand recognizes a customer's identity and rewards it with a meaningful offer, the relationship deepens fast. This creates a value exchange that feels exclusive, not excessive, and builds loyalty without training customers to expect constant discounts.

2. Drive high-quality footfall

Gen Z is a mobile-first generation, but they still value in-person experiences. 

72% of Gen Z remember brands from outdoor advertising and 60% are then motivated to visit the store. 

68% of students are more likely to make a purchase after attending a brand's in-store event.

An in-store app verification like Student Beans and enhanced advertising features that directly alert nearby students to your presence, enticing them to visit your physical locations. This strategy boosts local footfall and drives in-the-moment purchasing decisions on the high street.

3. Capture valuable zero-party data

Traditional discounts often leave you "data rich" but "insight poor". You get the sale, but you don't learn anything about the customer. 

With seamless verification, you can capture zero-party data from every student who engages with your in-store offer. That enables you to retarget these customers with online marketing efforts, ensuring that an initial in-store interaction becomes part of a long-term customer journey.

By focusing on community and identity rather than just price, brands can use in-store offers to build a loyal customer base and avoid the trap of attracting only bargain hunters. It's about making a sale and building a relationship at the same time.

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