The History + Strategy Behind the Veteran Discount

On Monday, we celebrate Veterans Day. As we recognize and honor those who fought and are fighting for our country, we’re taking a few minutes to look at a common expression of gratitude in the United States: the veteran discount. Businesses across the country, from local restaurants to major retailers, implement this discount to show their support for veterans. It’s also a powerful marketing tactic to share brand values and reach a wide audience.?

The history of the veteran discount

It’s difficult to pinpoint the exact moment private businesses began offering veteran discounts, but many trace its origins all the way back to World War I. After the war ended, many veterans suffered from suicide, homelessness, unemployment, and drug addition, and they were not provided with tools to help. In 1944, the implementation of the GI Bill gave veterans the opportunity to buy homes and earn college degrees through federally-funded programs, giving them more support for their efforts to keep our country free. Some theorize it was programs like this that inspired the rise of the veteran discount in the 1970s and 1980s, when private business began giving free items and percentage discounts as a way to say thank you. But a simple thank you isn’t where the strategy ends.?

The strategy behind the veteran discount

Veteran discounts represent more than a financial transaction. They’re a tangible expression of gratitude and a recognition of service that comes in many forms. That said, these discounts are also a valuable way to get customers in the door.?

Authentic brand values in action

In today’s marketplace, consumers are increasingly discerning. In fact, 82% of shoppers say they want a brand’s values to align with their own. Offering a veteran discount is much more than just a marketing tactic, it’s a public declaration of respect in support. They’re communicating that their business supports veterans—?a value that many people agree with.?

Marketing to a wide audience

In 2022, approximately 16.2 million veterans called the United States home. Furthermore, many Americans have a close friend or family member who serves or has served in the military. By implementing a veteran discount, you’re casting a wide net to a substantial consumer base with unique needs and shared experiences.?

Let’s say, for example, two rival home improvement stores are trying to reach veterans as their target audience. If one begins offering even a 10% discount for active and retired military members, it’s enough incentive for veterans to choose that store over the other. This subtle difference creates a meaningful competitive advantage, potentially steering millions of veteran consumers toward one brand.

The power of target marketing

The veteran community represents distinct characteristics and purchasing behaviors. Identifying and understanding your target audience is an essential part of your marketing strategy. This is why targeting this specific audience through veteran discounts can be particularly effective:

• Community amplification—?Veteran and military families form close-knit communities, with word spreading quickly about benefits such as a veteran discount.
• Lifetime value proposition—?Veteran customers often demonstrate strong brand loyalty, multi-generational brand relationships, and influence over family purchasing decisions.
• Cross-demographic appeal—?A veteran discount often resonates with military supporters, patriotic consumers, and family members, demonstrating corporate social responsibility with those audiences.

Veteran discounts inspire others

The veteran discount has grown from a simple gesture of gratitude into a sophisticated intersection of social responsibility and strategic marketing. Forward-thinking companies are expanding these programs to include veteran families as well as others at the core of our society, like first responders, healthcare professionals, and teachers. This reframes and expands our society’s definition of everyday heroes, celebrating those who contribute to our country in a variety of ways.?

As we continue to understand the unique challenges and strengths of the veteran community, companies have an opportunity to innovate in how they serve those who served us. Whether through customized product lines, veteran-specific services, or community-building initiatives, the possibilities for meaningful engagement are endless.

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