7 reasons why your brand should offer a student discount

Promotions are a strong feature in the traditional marketing mix, however, discounting specifically for students is sometimes overlooked. If your brand is marketing to university students and not offering a student discount (in this day and age?!), you should be seriously considering it — or risk losing the loyalty of these savvy consumers once and for all. 

However, in case you need further convincing, this blog should settle the debate, once and for all…

Why should your brand offer discount programs for students?

1. They're the consumers of the future

Students are the high earners and business decision-makers of the future. As of last year, average graduate salaries in the UK can reach £43,000, whilst in the US it’s about $68,000. 

If you want a head start with the next generation of successful young professionals, you'll need to nurture the college target market, and get current students on board.

2. Increase repeat customers and drive longterm loyalty

Guess what: loyalty programs drive loyalty. Quelle surprise. 

Students in their late teens and early 20s are a valuable market because they’re making purchasing decisions that could determine their brand loyalty for years to come. For many at university or college, they’ll be purchasing from certain brands for the first time and setting up new accounts with service providers, and this matters.

65% of students are likely to remain loyal to a brand they discover during the freshers/back to school period. 

80% of Gen Z say offering a loyalty program makes them more likely to shop with a brand. 

62% say discounts would make them want to join a brand’s loyalty program. 

The numbers don’t lie: win over a student with an exclusive marketing promotion and you could have them as a customer for decades to come. 

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3. Discounts make a difference

In a competitive and over-saturated market, standing out is critical. Did you know that 85% of Gen Z say they’d be more likely to shop with a brand if they offered a student or young person’s discount?!

Providing students with an exclusive discount can give your brand an edge over your competitor, who may not have recognized the value of tapping into the student demographic.

Need some numbers? Here’s how many students* are looking for discounts in some key sectors:

• Fashion - 95%
• Food and drink - 90%
• Entertainment - 73%
• Beauty - 65%
• Travel - 65%
• Tech and mobile - 63%
• Health and fitness - 51%

But despite a willingness to spend, Gen Z wants to go somewhere they trust — somewhere they know will give them a good deal and value for money. In fact, when looking to make a purchase with a brand using a discount, 83% prefer to use a student discount card from a provider like Student Beans (Pion’s student discount platform), compared to using a generic code or showing their student card. 

Want to be one of those retailers that offer a student discount? Ready to offer exclusive deals? With Pion’s verification technology, Beans iD, we can help you run gated offers on your website, app, or stores. Find out more and explore our pricing plans here. 

4. Saving their bank accounts drives brand love 

We know — students are watching their wallets, as are brands. Everyone’s budgets are tighter, and that can make things difficult. But offering a student discount can save students money, and in turn, increase their repeat spend with you. It’s the obvious solution. 

One Gen Zer told us, “Anywhere with a student discount, I’m gonna check it out!”, whilst another said they “love brands with a really good loyalty program, something cheesy that you’re really gonna love.” 

Beyond the immediate impact on sales, offering a student discount contributes to a positive brand image. It portrays your brand as inclusive, understanding, and considerate of the financial constraints that students are facing at this time.

5. Limited responsibilities equals higher disposable income 

The typical student doesn’t have adult commitments such as children or a mortgage, which frees them up to spend their money on fun things, be it experiences, new clothes, or the latest technology. 

And, as they transition into the workforce, their spending capacity will only grow — so offering them incentives early on is a great way to solidify your brand's place in their purchasing decisions.

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6. Digital natives

Gen Z students live and breathe social media, and this will only increase with future generations (Did you know that 27% of the next generation (Gen Zalpha) are already spending 2-3 hours a day online?). 

And, when they're not scrolling, they're communicating; regularly messaging their friends online about their favorite brands, latest purchases, and the creators they're loving. This makes them a powerfully influential group of consumers; in other words, once they find a brand they love offering a great discount, they’ll spread the word to their peers, which will increase brand visibility for you — a win-win!

7. Stand out from your competitors 

“If I’m between two airlines and only one of them offers a student discount”, says student Karissa, “then I’m choosing the one with the student discount.”

Bold words, but it’s true. 

Nothing helps you stand out more from a competitor than an extra financial incentive, and for Gen Z, saving pennies is the most important thing: 77% would be willing to switch from their favorite brand if another offered a better loyalty reward. 

So there you have it: not offering a discount is basically too big of a risk. Offer those student deals ASAP to stand out and secure their spend.

Convinced? Whether you’re at square one and need to verify customers and kickstart your discounts or you’re ready to optimize your current offerings, Pion is here to help. Book a demo with our team today.

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*UK survey of Student Beans users, April 2024

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