Let’s think for a moment about the last brands we recommended to a friend, family member, or colleague.
We’re probably not just talking about price. We’re talking about an experience. About exceptional service. About something that exceeded our expectations.
Because the reality is that people rarely recommend a brand simply because it was the cheapest option. Recommendations are born from memorable experiences.
Table of contents
- Introduction
- The problem with competing on price
- What really sparks conversation
- Loyalty stems from perceived value
- Recommendation as an indicator of success
- Conclusion
The problem with competing on price
Discounts are a useful tool. They can boost sales, attract new customers, or accelerate purchasing decisions.
However, they also have a major limitation: they are easy to copy.
When a strategy relies solely on price, the competitive advantage is usually short-lived. There will always be someone willing to offer a better deal.
What really sparks conversation
| People talk about things that surprise them. |
| That which generates a positive emotion in them. |
| That which makes their lives easier. |
That’s why some brands generate consistent recommendations even when they aren’t the cheapest in their category. They’ve managed to build an experience worth sharing.
Loyalty stems from perceived value
A customer can take advantage of a promotion. But a brand ambassador returns because they perceive value beyond price.
- He returns because he trusts.
- Because he feels recognized.
- Because he enjoys the experience.
- And because she believes the brand understands her needs.
Recommendation as an indicator of success
One of the clearest signs of a strong relationship is when customers spontaneously begin to recommend the brand.
At that point, the conversation shifts from price to experience. And that represents a much more difficult advantage to replicate.
Conclusion
Discounts can generate sales. But experiences generate recommendations.
Organizations that succeed in differentiating themselves are not necessarily those that sell the cheapest. They are the ones that build relationships valuable enough that people want to share them.
Because in the end, nobody recommends a brand because of its discounts. They recommend it because of how it made them feel.
At LMS we help organizations design loyalty and incentive strategies that strengthen their relationship with customers beyond a simple transaction.
