For direct-to-consumer brands, the siren song of the discount code is almost impossible to ignore. In the race to hit quarterly targets, incentives offer a quick hit of conversions but quietly erode brand value. They train customers to wait for deals, undermining the very loyalty that sustainable businesses are built on.

This constant pressure to hit a number has created an industry-wide "incentives trap," a cycle of discounting that sacrifices future profitability for today's sales. But a more sustainable, data-backed strategy is emerging to build real customer relationships through value, not giveaways.

Alison Ehrmann is a growth-focused Chief Marketing Officer and a seasoned expert in the D2C and subscription space. Her experience extends across an impressive list of household name brands like Toys "R" Us, FreshDirect, American Greetings, and Nom Nom. Ehrmann has seen firsthand how the over-reliance on incentives can sabotage long-term growth. Her solution is a strategic pivot away from just giving things away and toward a more meaningful value exchange.

The incentives trap: "We've all fallen into the trap of needing to use incentives because they can be a necessary means to a short-term goal," Ehrmann said. "But they do not do a good job in building loyalty. If you're in a business where it's a new product or very uncertain, it can reduce the friction to trial. But when it's a product that people are using regularly, all you're doing is giving away money to people who are likely to convert anyway."

To escape this trap, Ehrmann argues that marketers must fundamentally rethink how they earn a customer’s attention and, more importantly, their data. The answer isn't to stop giving, but to start giving the right things.

Give to get: "Not all data can be inferred or bought. Sometimes you have to collect it yourself," she stated. The key to unlocking that valuable, self-reported data lies in a simple philosophy. "You have to give to get. Consumers aren't just going to willingly give information, but if it's relevant to them and they can get some value out of it, then it's meaningful."

This value exchange works best when it feels less like a transaction and more like a conversation. Ehrmann points to the success of quiz-like digital journeys that guide customers toward a personalized outcome. The psychology is powerful because the customer feels understood, not just marketed to.