Why Is It Profitable for American Companies to Offer Personalized Discounts to Military Personnel?
In today's world, the economy is steadily linked to various social groups, and one of the most important of these is the military community. Why do businesses in the United States offer personalized discounts to the military? This is a question on the minds of many businesses seeking to gain the attention and trust of this significant audience.
Why Do Businesses in the United States Provide Personalized Discounts to the Military?
To understand the motivation of businesses, it is necessary to look at the facts. A study conducted by SheerID and Military Times offers a unique look at the preferences and behaviors of more than five hundred members of the military community. According to the study, the U.S. military not only represents a large group of 37 million consumers with an impressive $1 trillion in purchasing power but also exhibits a distinct social identity.
For many service members, a sense of belonging to the military community plays a key role in their daily lives. More than two-thirds of respondents said that belonging to the military community is important to them, influencing their perception of the world and forming connections with others.
The marketing strategy of personalized discount offers also focuses on customer loyalty. It appeals to the target audience — military personnel — and yields this result:
- 74% of military personnel actively seek out brands that are willing to provide them with privileges,
- 90% have already taken advantage of such offers.
These numbers speak for themselves, indicating a strong need for special benefits for the military.
The study also found that personalized discount offers not only drive purchase behavior but also create deep emotional connections with the brand.
When asked, "How would you feel if you received a personalized military offer?" Responses were rated as follows:
- 66% — I'm valued
- 65% — Support
- 60% — Appreciation
- 55% — Recognition
- 55% — Honor
- 54% — Respect
The majority, specifically 96% of military personnel, will share personalized offers with others in the military community. Also, personalized offers encourage military members to shop:
- 61% are more likely to purchase from a brand
- 58% become familiar with the brand
- 42% shop for more items
- 41% make a purchase faster
All of this makes it clear why many companies are actively engaging with military customers, offering them not only products and services but also recognition and respect.
So if a business in the U.S. wants to succeed, engaging military customers and offering them personalized discounts is not just a strategy, but an important part of ethics and responsibility to the community.
How Effective Can a Military Promotional Program Be?
A survey conducted by ID.me, the U.S. leader in military ID verification, shows that service members and veterans actively seek out military discounts online and return to retail stores that offer them.
On the eve of Veterans Day, ID.me surveyed nearly 8,500 current and former military personnel about their online shopping habits. The results showed the following:
- 95% of those surveyed say they spend time searching for exclusive military discounts before making an online purchase;
- 90% say they would rather make a purchase from a merchant that offers a special discount on military items rather than purchase from a merchant that does not offer that discount;
- 96% say they are more likely to be loyal and return to a retailer that offers an exclusive discount for military items;
- According to 95% of respondents, companies that offer military discounts are associated with patriotism and/or concern for veterans;
- 89% consider it an honor to receive such a discount;
- 97% of respondents said they had utilized military discounts in the past year, with more than half using discounts at least once every two months;
- 93% of veterans surveyed and 90% of active military personnel planned to take advantage of special military discounts on Veterans Day;
- 56% say they are always looking for discounts on military products.
Examples of Successful Promotions by International Companies
American companies have created a number of successful promotions for the military, which are examples of successful interactions with this category of customers. In this way, companies express their gratitude to the military for their loyalty and help reinforce a positive brand image.
Targus
A leading seller of laptop and tablet accessories has successfully introduced a special offer for the military. The company created a special webpage exclusively targeting military personnel to visually express their gratitude. The results were impressive: conversion rates more than doubled from 2018 to 2019 thanks to the personalized offer for military members.
American Giant
The apparel retailer actively supports the military community by offering a 20% discount for military personnel, reservists, National Guard, veterans, and their families. This is a clear show of appreciation and respect for the nation's heroes. As noted by brand representatives, email marketing campaigns targeting military customers have performed significantly better than other promotions.
Rollick
The brand launched a SUV purchase program, giving military and veterans exclusive discounts and special pricing. The program paid off, doubling the number of potential customers from the previous year.
The ultimate goal was to make the process of verifying each consumer's military status simple and seamless for both buyers and dealers. The solution was to use SheerID's verification platform to jumpstart the military program and provide a fast, seamless verification process. Consequently, military status verifications grew 130% and subscription revenue grew 70%.
Michaels
The renowned leader in home decor and arts and crafts offers military members a 15% discount on all orders both online and in physical stores. The Michaels chain wanted to improve their customers' experience by making discounts for teachers, military and retirees available online, and allowing these customers to confirm the discount once so that it would automatically apply to their next purchases.
Tuft & Needle
The company believes that heroes deserve significant savings. To ensure that military personnel get a restful night's sleep, the mattress brand offers them a 15% discount through its Heroes program. This support for the defenders makes the company profitable and helps improve the lives of the military. Tuft & Needle also provides free mattresses to local organizations, which sets it apart from its competitors in mattress sales and shows how much it values its connection to the community.
TIDAL
Military members receive a TIDAL subscription at a 50% discount off the standard price. TIDAL uses personalized marketing and exclusive offers to build strong emotional connections with military customers. Angelo Sasso, the company's senior vice president of customer engagement, notes that TIDAL's special offers result in higher customer retention rates than regular plans. As a result, the company has cut back on paid advertising and relies more on positive word-of-mouth distribution.
Vail Resorts
Rob Katz, CEO of Vail Resorts, expresses respect and gratitude to the brave military men and women who have served the United States. The company offers exclusive military discounts on season passes.
In his quarterly report, Katz said the following about the exclusive military discount program, "While the Military Epic Pass is priced much lower than our other season passes, we are seeing significant incremental revenue from the program that is significantly higher than previous years."
Huel
The brand offers nutrient-dense foods that focus on health benefits, fitness and convenience — all of which meet the needs of the military. After a successful launch in the US in 2018, the company sought to expand the number of long-term subscribers and strengthen ties with the military. Co-founder Julian Hin believes that with the special 10% discount, customers will return and recommend the organization to their friends.
T-Mobile
In 2018, T-Mobile launched the T-Mobile ONE military program. The program includes an exclusive offer that provides military members and veterans with a 50% discount on family lines, unlimited talk, text, and data, and a free Netflix subscription.
T-Mobile, acting in the best interest of its customers, is rolling out this offer with SheerID. Customers simply activate the new T-Mobile ONE Military plan and enter a minimal amount of information on the verification page, after which their military status is instantly confirmed. Company officials noted an increase in profits after the launch of the promotion, attributing it to its success in attracting new customer segments.