The days of relying solely on discounts to attract customers may be coming to an end. As Starbucks and Taco Bell shift away from discount-heavy strategies, local businesses should take note and consider alternative ways to build lasting relationships with their customers. But how can smaller businesses—without the marketing budgets of Starbucks or Taco Bell—compete in this changing landscape? The answer lies in platforms like GOTYOU, which empower local merchants to level the playing field through personalized engagement and rewards, without depending on constant discounts.
Starbucks’ Shift: Moving Away from Discounts to Build Loyalty
Starbucks has taken a bold step by reducing promotions through its mobile app and focusing on elevating the in-store experience. CEO Brian Niccol’s vision is to return to the brand’s roots as a community coffeehouse, where customers pay full price for their coffee and enjoy a premium experience. This move allows Starbucks to reduce strain on its employees, improve profitability, and cultivate a loyal customer base that values more than just a deal.
Local businesses can learn from this approach. Discounting might bring customers through the door, but it often attracts deal-seekers who won’t return unless there’s another offer. Instead, creating a personalized and memorable experience can foster real loyalty.
Taco Bell: Gamification and VIP Access
Taco Bell is another brand setting an example. Its loyalty program goes beyond discounts, offering unique experiences and gamified rewards to engage customers. From early access to products to exclusive VIP events, Taco Bell has shown that customers want more than just discounts—they want to feel connected to the brand.
By rewarding customers with experiences and engagement, Taco Bell encourages higher spending and repeat visits. Loyalty customers spend 40% more annually than other guests. This is a strategy local businesses can easily adapt—by offering rewards for loyalty rather than discounts, businesses can encourage customers to keep coming back.
GOTYOU: Leveling the Playing Field for Local Businesses
For local businesses, competing with the scale and resources of Starbucks or Taco Bell might seem impossible. But platforms like GOTYOU make it easier than ever to build meaningful customer relationships without relying on constant discounts. GOTYOU allows merchants to offer personalized rewards and deals based on real-time, location-based data, leveling the playing field with big brands.
Here’s how GOTYOU can transform your business:
- No Need for 50 Loyalty Programs: Consumers don’t want to juggle dozens of loyalty programs. GOTYOU consolidates rewards across multiple businesses, offering users one platform where they can earn tokens and perks. This makes it easier for customers to stay engaged with your business without having to sign up for yet another program.
- Let Consumers Earn Their Deals: GOTYOU empowers users to earn rewards through engagement, rather than receiving discounts upfront. Whether it’s checking in at your store, leaving feedback, or referring friends, users earn tokens that can be redeemed for deals. This encourages customer loyalty and repeat visits without the need to slash prices.
- Data-Driven Engagement: GOTYOU provides local businesses with powerful tools to understand their customers like never before. Merchants can access real-time data on customer behavior, spending potential, and in-store engagement, allowing for more personalized offers and deeper connections(Merchant Overview).
- Building Community, Not Just Sales: One of the key strengths of GOTYOU is its ability to foster a sense of community. Merchants can engage with customers through in-app notifications, personalized offers, and targeted campaigns, all while cultivating a network of loyal patrons. This community connection mirrors what Starbucks is trying to rebuild—a place where customers feel valued and connected.
Alternative Growth Strategies Without Discounts
For local businesses looking to move away from discounts and build lasting value, here are some strategies that can work alongside GOTYOU:
- Personalized Loyalty Programs: Like Starbucks and Taco Bell, businesses can use GOTYOU’s platform to create personalized loyalty programs that reward customers based on their behavior and engagement. This goes beyond just earning points for spending—customers can be rewarded for checking in, referring friends, or participating in surveys.
- Exclusive Access and Events: Offer exclusive perks such as early access to new products, special events, or VIP experiences for your loyal customers. GOTYOU makes it easy to tailor these offers to specific customer segments, helping to build emotional connections that drive repeat visits.
- Gamification: Incorporate gamification elements into your loyalty program, similar to Taco Bell. Challenges, tiered rewards, or bonus tokens for certain activities can add an element of fun and competition that keeps customers coming back.
- Data-Driven Campaigns: Use GOTYOU’s AI-powered tools to send targeted, personalized offers to customers based on their preferences and past behavior. By engaging customers with relevant offers, you’ll build stronger relationships without needing to rely on broad discounts(Merchant Overview).
The Future of Loyalty: Build Relationships, Not Discounts
Discounting might seem like an easy way to drive sales, but it often comes at the expense of long-term growth and profitability. Platforms like GOTYOU give local businesses the tools they need to build real, lasting customer relationships—without the need to undercut their prices.
By following the lead of Starbucks and Taco Bell, and leveraging GOTYOU’s powerful engagement platform, local businesses can create a premium customer experience that fosters loyalty, boosts profitability, and enhances their presence in the community. And the best part? Customers will value what your business offers, not just the price tag.
With GOTYOU, you can finally level the playing field with the big brands—while building a loyal, engaged customer base that sticks around for the long term.
