Study: One discount no longer fits all consumers
Discounts still drive demand, but relying on one tactic risks leaving revenue and loyalty on the table.
“Discount fatigue” is growing among shoppers, according to a study from growth firm Power Digital, which found that discounting alone is no longer the sole lever driving consumer behavior. The study revealed that one discount no longer fits all: While 45.9% of consumers still prefer percentage-off deals, nearly as many want bundles, loyalty perks, or dollar-off offers.
Power Digital’s 2025 Black Friday-CyberMonday study also found that heavy discounts can backfire, with 10.6% abandoning brands they felt were cheapened by aggressive markdowns. Also, 20.7% of shoppers have stopped buying from a brand over misleading offers.
Luxury and premium brands face a balancing act when it comes to discounting, with 34.8% of consumers saying 15–20% off feels “perfect,” and 11.7% saying deep discounts make brands feel “cheap.” Also, 35.9% of consumers say they avoid luxury brands that don’t show value compared to cheaper alternatives.
The study noted while an estimated 20 million Gen Z consumers are expected to spend over $6 billion during this year's holiday weekend, the generation shops on its own terms. One-in-four uses TikTok as their default search engine, and nearly two-thirds say creator partnerships increase purchase likelihood, underscoring the need for social-first, creator-led acquisition strategies.
“The real Black Friday-Cyber Monday metric isn’t how deep your discounts go…it’s how much trust you build,” said Dani Powell, VP client experience at Power Digital. “Our data makes it clear: when trust erodes, so does customer lifetime value. Shoppers want to feel like they’re getting real value, not gimmicks, and they remember when brands fall short.
The brands that treat Black Friday-Cyber Monday as more than a weekend sales event and see it as a chance to strengthen their relationships with customers are the ones that win, advised Powell.
“The brands that do this well are the ones that will see that loyalty and revenue compound well beyond the holiday season,” she said.
The study urges executives to shift their perspective on Black Friday-Cyber Monday rom a short-lived revenue spike to a strategic lever for building enterprise value. Key recommendations include:
- Calibrate discount depth by category to balance short-term sales with long-term brand equity.
- Prioritize discovery where it actually happens…on TikTok, through creators, and via email.
- Treat Black Friday-Cyber Monday as a brand-building moment to strengthen trust and loyalty beyond the holiday weekend.
- Measure retention and lifetime value as the true benchmarks of success, not just Q4 revenue spikes.
