Want better ROI? Focus on visibility, not discounts

British shoppers are becoming more price-conscious than ever. Nearly 70% now prioritise cost over brand names, and brand loyalty continues to decline. In response, many retailers have turned to heavy discounting to stay competitive. While cutting prices may deliver a quick boost in sales, this short-term fix often leads to long-term damage to a brand’s value and growth potential.

Discount-driven strategies have a hidden cost. Over the past two years, 62% of UK retailers have failed to strengthen their brand differentiation, with more than a third experiencing a decline. Among the top ten retailers in the country, this loss of distinctiveness has contributed to a staggering 20% drop in brand value in just one year. When brands start to blur together in consumers’ minds, it becomes harder to charge premium prices or build lasting loyalty. Competing on price alone not only squeezes margins but also leaves businesses vulnerable to increasingly fiercer competition.

The hidden cost of discounting

Discounting may seem like an easy solution to shifting shopper behaviour, but it often comes with serious drawbacks. While price reductions can drive immediate sales, they rarely build long-term loyalty or brand preference. Instead, they risk training customers to wait for the next sale, eroding perceived value and weakening your brand’s position.

Here are some key reasons why discount-driven strategies should be approached with caution:

• Brand differentiation suffers: When your brand competes mainly on price, it becomes indistinguishable from others offering similar deals. This weakens your unique appeal and makes it harder to command better prices in the future.
• Margins are reduced: Frequent discounts eat into your profit margins, leaving less room for investment in product quality, service, or marketing.
• Customer loyalty declines: Shoppers who buy only on price are less likely to become loyal customers, switching to competitors whenever a better deal appears.
• Vulnerability to competitors: Price wars escalate, often forcing all players to keep cutting prices to maintain market share, which is damaging for the whole industry.

Data shows this erosion is real and costly. The UK’s leading retailers have seen a significant drop in brand value as a result of discount-led approaches. It’s clear that competing solely on price is not a sustainable strategy.

Three priorities to rebuild brand strength

To recover from the pitfalls of discounting and build lasting success, retailers should concentrate on three main priorities:

1. Align pricing with perceived value.
2. Increase visibility at key decision moments.
3. Set your brand apart with meaningful differentiation.

Each of these areas supports one another, creating a strong foundation for sustainable growth.

1. Align pricing with perceived value.

One common mistake many retailers make is pricing their products either too high or too low compared to what customers actually value. If prices don’t match customer expectations, sales will suffer, regardless of quality or features.

To get pricing right, consider the following steps:

• Analyse competitor pricing and customer feedback: Conduct thorough research on how your competitors price similar products. Collect feedback from your own customers to understand their perception of your value. Are you offering more convenience, quality, or unique benefits that justify a higher price?
• Define and communicate a clear value proposition: Your pricing should reflect the unique benefits your brand offers. This isn’t just about features but includes emotional and practical factors like trust, service quality, and alignment with customer values.
• Consistently reinforce your value across channels: Make sure your messaging—whether in-store, online, or through advertising—clearly explains why your prices are fair and what sets your brand apart. Avoid confusing customers with mixed messages about discounts and value.

It is important to remember that value extends beyond price. Modern consumers increasingly seek convenience, meaningful experiences, and alignment with their personal beliefs. Pricing that reflects this deeper value helps protect margins and supports customer loyalty.

2. Increase visibility at key decision moments.

Once your pricing is aligned with customer expectations, the next priority is ensuring your brand is visible when shoppers are making purchase decisions. Visibility—being noticed and remembered—is a critical driver of short-term sales and long-term brand strength.

Consider these practical ways to boost your brand’s presence without resorting to discounts:

Improve your presence across online channels.

• Optimise your website: Your website should be easy to use, mobile-friendly, and optimised for search engines to rank well in organic search results. This makes it simple for shoppers to find you when they’re researching products.
• Stay active on social media: Maintain engaging social media profiles that speak directly to your target audience. Share relevant content, encourage conversations, and build a community of loyal followers.
• Use local search tactics: Many shoppers look for products “near me.” Use local search optimisation to ensure your brand appears prominently in these searches and attracts customers in your area.

Invest in targeted paid advertising.

• Focus on buyer intent: Run pay-per-click (PPC) campaigns targeting keywords that signal strong purchase intent, rather than broad discount-related terms. This ensures your ads reach shoppers who are ready to buy.
• Use data to optimise spend: Employ advertising tools that allocate your budget efficiently, reaching customers at the right time without waste.
• Review and adjust campaigns regularly: Analyse the performance of your ads and make adjustments to improve effectiveness.

Use first-party data to personalise communications.

• Segment your audience: With customer permission, collect and analyse data to understand shopping habits and preferences.
• Tailor messaging and offers: Send personalised communications that match the interests of each segment, rather than blanket discount offers that reduce margins.
• Create loyalty programmes: Reward repeat customers with exclusive offers or experiences that reinforce your brand’s value.

Build emotional connections through storytelling and purpose.

• Share your brand story: Tell authentic stories about your heritage, values, and what makes your products unique.
• Support causes that matter: Demonstrate commitment to issues your customers care about, such as sustainability or community initiatives.
• Highlight customer testimonials: Showcase real-life benefits and positive experiences to build trust.

Create memorable experiences both online and in-person.

• Streamline the purchase process: Make buying easy and enjoyable with fast checkout, expert support, and personalised service.
• Host special events or launches: Generate excitement with exclusive product releases or collaborations.
• Offer limited editions or bespoke products: Increase perceived value and appeal by providing unique items without reducing price.

Collaborate with influencers and brand advocates.

• Partner with Trusted Voices: Work with influencers who genuinely share your brand’s values and can authentically promote your products.
• Focus on Niche Audiences: Target micro-influencers or specific communities where engagement is high and relevant.
• Encourage Positive Reviews: Amplify endorsements to build credibility and reach.

Tracking return on investment (ROI)

While improving visibility and engaging customers are vital, it’s equally important to measure how these efforts translate into real business results. Monitoring key indicators such as website traffic, conversion rates, and sales allows retailers to understand the return on investment (ROI) of their marketing activities. This insight ensures that budgets are allocated effectively, focusing on strategies that deliver the best value without relying on discounts.

3. Set your brand apart with meaningful differentiation.

Strong brands stand out because they offer something different and valuable to their customers. This distinctiveness builds loyalty and allows for premium pricing.

Retailers can evaluate their brand across five important dimensions:

• Distinctiveness: Create a unique visual or experiential identity through design, messaging, and customer service.
• Uniqueness: Offer products or services that are genuinely different from competitors.
• Advancement: Use technology and data thoughtfully to improve customer interactions and convenience.
• Disruption: Challenge traditional business models with innovative approaches.
• Purpose: Connect with customers by demonstrating values beyond profit, such as sustainability or social responsibility.

By considering these factors, retailers can ensure their brand remains relevant and appealing throughout the customer journey.

Supporting visibility with thoughtful creativity.

Visibility alone isn’t enough. Your brand’s messaging and creative content must reflect what makes you special and why customers should choose you over others.

Avoid generic discount offers. Instead:

• Tell authentic stories that highlight your unique qualities and benefits.
• Tailor creative content to suit different platforms and audience segments.
• Make your brand memorable and encourage conversions while preserving margins.

This approach strengthens brand preference and drives meaningful engagement.

Prioritise visibility for lasting returns

Discounting may deliver quick sales spikes, but it often sacrifices long-term brand strength and profitability. Retailers who focus on building visibility through clear value propositions, strategic presence, and compelling storytelling will see stronger, more sustainable growth.

Instead of competing solely on price, concentrate on being visible and relevant at the moments that matter most in the customer journey. This not only boosts immediate sales but also secures lasting brand equity and future success.