Rethink Discounting: Unlock the Power of Rewards to Build Client Loyalty

If you’re running a veterinary practice, you’ve probably tried discounts to attract clients—whether it’s senior discounts, military discounts, or dental discounts. While that can seem like a great way to bring in business, there’s a better strategy out there that doesn’t involve cutting into your profits and has 12 years of history in the veterinary industry: rewards. By the time you are done with this article, I will show you an exact roadmap to recover 70% of discount losses in year one, and produce long term loyalty at the same time.

Why Discounts Hurt More Than Help

Let’s be real—discounts might get clients through the door, but they’re a 100% immediate loss. Every time you discount your services, you’re just taking money out of your pocket. For example, if you offer 10% off on a $300 service, you’re giving away $30 with no guarantee the client will come back. There are wellness plans out there now where practices give away 10% on ALL services outside of what is converted in the plan. Ouch, right? 

Rewards: A Smarter Move

Instead of handing out discounts, why not offer rewards? Unlike discounts, rewards are soft dollars—meaning they aren’t immediately cutting into your revenue. In fact, in the first year, roughly 30% of rewards get redeemed in the vet world (we tracked this metric our first couple years in the industry), so you’re keeping most of your earnings. Over time, that rate climbs to about 70%, but by then, your clients are more loyal and more likely to keep coming back. If you have that wrapped in a membership, you are also collecting membership revenue.

How Discounts Eat Away at Your Business

Here’s the thing—discounts aren’t just hurting your bottom line. They’re actually cannibalizing your business. Here’s how:

• You’re giving away revenue.
• You’re surrendering profits that you worked hard to earn.

When you offer a discount, you’re not just losing money—you’re training your clients to expect lower prices. This might help in the short term, but long term? You’re creating a race to the bottom where you’re competing on price, not quality.

The Vegas Trick: How Rewards Tap Into Human Psychology

Ever wonder why people spend so much in Las Vegas? It’s because when you’re gambling with chips instead of real money, you tend to spend 140% faster. Why? Because it doesn’t feel like real money.

Rewards programs work the same way. Rewards currency (whether it’s points, credits, or bonus bucks) doesn’t feel like real cash to your clients, but it encourages them to spend more, and more often. It’s like they’re playing with house money!

How Rewards Boost Your Revenue

Not only do rewards bring people back, but they also increase your revenue in the process. Here’s why:

• More visits: Clients will return to redeem rewards, bringing more regular business.
• Bigger spend per visit: When they come back, they’re more likely to add on additional services or products to maximize their rewards. Just like I spend more than my usual amount at a business if I happened to receive a gift card the previous week.
• Revenue growth: A well-designed rewards program can boost your revenue by up to 70% in just the first year. How, you replace all discounts with rewards, and roughly 30% of rewards get redeemed in the first 12 months. That percentage will go down in year two, but you are talking about a massive transformation and immediate impact. 

Discounts vs. Rewards: What’s the Real Impact?

Let’s break it down with a quick example:

• $300 discounted to $200: You just gave away $100 and only pocketed $200.
• $300 with a $100 rewards bonus: You collect the full $300 now, and your client gets $100 in rewards, which makes them more likely to return.

With discounts, you’re losing revenue on the spot. With rewards, you’re keeping all your money and giving clients a reason to come back again. It’s a win-win.

The Problem with Discounts: Setting the Wrong Expectations

Here’s another issue with discounts: they lower the perceived value of your services. From day one, clients expect lower prices, and that’s not a good place to be. You’re essentially creating a price war—and you don’t want to be in a price war with the likes of PetSmart.

Discounting means you’re focusing on price instead of showing clients the true value of the care you provide. And let’s be honest—quality vet care isn’t something you should be slashing prices on.

Why Rewards Are the Answer to Ditching Discounts

So, how do you get out of the discounting cycle? The answer is simple: rewards currency.

By using a platform like Rethink Veterinary Solutions, you can build a system that rewards loyalty without cutting into your bottom line. Let’s look at the math:

• $1 million in revenue after offering $100k in rewards: Your total revenue stays at $1 million. The $100k in rewards is only redeemable at your practice, so it’s not lost money—it’s an investment in client loyalty.
• $100k in rewards is $100k worth of reasons for clients to come back and spend more each time they visit.

Now compare that to discounts:

• $900k net after $100k in discounts: If you offer a 10% discount, you’re throwing away $100k in revenue right off the bat. Here is an example of a practice that offers wellness plans and then a 10% off all other services. It’s common practice now and a big mistake. Wellness Plan with 10% off

With rewards, you’re building a stronger client base. With discounts, you’re cutting your profits.

The Data Doesn’t Lie: Rewards Work

We’ve seen it time and time again: rewards programs are the foundation of success for so many practices. Here’s why:

• 7 years of data shows us that rewards consistently drive client loyalty and revenue growth.
• We’ve helped practices like one in Foothill Ranch, CA Foothill Animal Hospital by switching to a rewards-based system.
• 30% of rewards go unredeemed, meaning a lot of those rewards dollars don’t even affect your bottom line.

Success Story Case Study: A Texas practice, Perrin 410

One of our clients for many years (until they got bought out) is the perfect example. Every year, they got stronger. In 2013 they had a net revenue of $582,448. In 2014 that jumped to $1,001,694.00 (which was their 3rd year in our program) and in 2015 that jumped to $1,374,065.00. A big part of that was their rewards program and I can provide you with more of data as well.  They didn’t just slap on a rewards system, though—they also made smart moves like:

• Paid Memberships
• Partnering with a large adoption agency which included membership for owners who adopted
• Adjusting prices to better reflect their value.
• Replacing Military discounts with rewards
• Increasing membership fees to add another layer of loyalty and income.

Final Thoughts: Rethink Discounts and Start Building Long-Term Loyalty

At the end of the day, discounts might seem like a quick fix, but they’re a long-term headache. Why compete on price when you can build loyalty with a rewards program?

Rewards help you increase revenue, bring clients back more often, and get them to spend more each time they visit—all without cutting into your profits or lowering the perceived value of your services.  So, isn’t it time to say goodbye to discounts and start growing your practice the smart way? If so, reach out and I’ll be happy to review case studies, give you a demo and show you how easy this transition can be.