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 over 12 years of history in the veterinary industry: rewards. By the time you’re done with this article, I’ll show you an exact roadmap to recover 37% 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. Many practices, including wellness plans, offer 10% on all services outside 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. On average, 62.82% of rewards get redeemed in the vet world in the first year, according to recent data from five veterinary practices. This means that you're keeping over 37% of what you would have lost by offering discounts. Over time, the redemption rate climbs to around 70%, but by then, your clients are more loyal and likely to keep coming back. And 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.
• Revenue growth: A well-designed rewards program can boost your revenue by up to 37% in just the first year. This happens because roughly 62.82% of rewards get redeemed in the first 12 months.

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.

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.

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.
• Recent studies across 5 practices show that 62.82% of rewards are redeemed in the first year, meaning the rest goes unredeemed, leading to immediate savings.
• Practices like Foothill Animal Hospital saw 37% more profit in the first year of switching to a rewards-based system.

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.

If you want to see exact figures from a 5 practice case study, view this link