military discount marketing: From Discounts to Differentiation
Interested in military discount marketing?
Military discount marketing as a stand-alone execution is not a military marketing strategy.
Most brands offer some type of military discount. Because those who served have been trained to look for a military discount, chances are your military discount is being utilized. Then again, the same military discount your competition is offering is most likely being utilized, too.
Differentiation is key in any marketing strategy, regardless of the audience or segment. Among the military community, a brand creates differentiation by speaking to the segment in terms important to them.
Refuel’s 2022-23 Military Explorer Study looked at shopping habits across the military community. As a motivation behind purchase intent and brand loyalty, a military discount doesn’t rank higher than #3 across any of the sub-segments measured within the total population.
Let that sink in. Data says a military discount doesn’t move the needle with the military community when it comes to purchase decisions and brand loyalty. Yet, a military discount is the go-to tactic for many brands in an effort to reach the military community.
Let’s look at what high-ranking brands as perceived by the military community do within the military segment.
Nike [#1 athletic apparel brand]
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Veteran employee support initiatives
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Support of military non-profit organizations
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Military discount
Toyota Motor Corporation [#1 automotive brand]
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Veteran hiring initiatives
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Veteran employee support initiatives
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Support of military non-profit organizations
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Military discount
USAA [#1 insurance brand]
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Veteran hiring initiatives
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Veteran employee support initiatives
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Support of military non-profit organizations
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Insurance rates based on military service
In each case, the brand offers some discount or rate consideration for military service, but the discount is part of a larger execution plan supporting the military and not a standalone tactic.
Yes, the highlighted brands provide a high quality product and rank highly with the general population. The #1 driver of purchase decisions and brand loyalty within the military community is product quality – after all, the military community are consumers, too. So let’s look at resale brand examples to illustrate the point.
In February 2024, Advance Auto Parts, through The Advance Auto Parts Foundation, donated $1.75 million to several nonprofit organizations dedicated to supporting veterans across the United States. This is the second year donations have been made to community partners. According to YouGov, the military community is 9% more likely to consider Advance Auto Parts, compared to the general population. Advance Auto Parts trails only O'Reilly Auto Parts (+0.1%) and NAPA Auto Parts (+13.3%) in the category, despite having ~1,250 fewer retail locations than either of the competitors.
All three auto parts brands offer the same 10% military discount.
Since 2022, the Lowe's Companies, Inc. Hometowns grant program has refurbished 15 veteran and military family facilities. Now in its third year, the five-year, $100 million impact program revitalizes community spaces including food pantries, veteran support programs, first responder facilities, affordable housing services and community gardens. According to YouGov, the military community is 14.6% more likely to consider Lowe's in the home improvement category, compared to the general population. The military community is only 4% more likely to consider The Home Depot, which has more locations than Lowe’s (approximately +125 retail locations).
Both Lowe’s and Home Depot offer the same 10% military discount.
There’s far more that drives consideration than a single tactic or program execution. However, a brand’s commitment to the military community will drive consideration among the segment. A brand doesn’t have to commit $1M+ to the military community to impact brand metrics, but a brand does need to do more than execute military discount marketing programs.
A good start to connect with the military community is for a brand to simply speak to the military community on a regular basis. Recognizing military observances throughout the year and saying, “thank you for your service” can be accomplished without a monetary spend.
Brands typically make attempts to connect and engage with the military community on Memorial Day and Veterans Day. Throw in a discount and this is what the market has told the military to expect in the way of outreach. For a brand willing to do more, there is an opportunity to turn the heads of the ~40 million consumers that make up the military community.
Marketing to the military should be an “always on” mentality, not just a few touches throughout the year at the same time every other brand is doing the exact same thing. The military community is one of the largest American consumer segments, made up of people from all walks of life. Their diversity and lifestyle offer tremendous marketing opportunities to brands who serve every audience. For a brand to really connect with this group, a level of understanding is required – not just check-the-box marketing done on Veterans Day.
Does your brand have an effective strategy to connect with the military community? The Barracks can help. Our team designs and executes marketing and sponsorship campaigns targeting the military community. We deliver results because we understand the audience. We understand who they are, where they live, and what drives them. We speak their language. We connect with the military community through authentic messaging in channels where they are, with information relevant to their lives.
Military discount marketing as a part of a larger military marketing strategy can help brands connect with the military community. Let’s talk about how we can help your brand.
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WHY US?
Our team designs and executes military marketing and sponsorship campaigns targeting the military community.
We deliver results because we understand the audience and how to position your brand message so that it resonates with a military audience.
We understand the pitfalls to avoid, the vernacular to use, and how to be authentic.
If your brand's military marketing strategy is offering a military discount, there is more opportunity for your brand to make an impact and connect with the armed forces as a growth strategy.
Let's talk.