The long-standing tradition of deep discounts as the primary driver of Black Friday-Cyber Monday (BFCM) sales is facing a significant challenge, according to a new study from the tech-enabled growth marketing firm Power Digital. The firm’s 2025 report, based on a survey of 1,000 U.S. shoppers, indicates that a simple price slash is no longer the only lever for success. Instead, the findings point to a growing “discount fatigue,” a massive opportunity within the Gen Z demographic, and a considerable reputational risk for brands that treat the holiday shopping weekend as a short-term revenue grab rather than a long-term play for brand loyalty.
The research reveals that consumer preferences for deals have become increasingly fragmented. While 45.9% of shoppers still favor traditional percentage-off discounts, a nearly equal number now express a preference for other forms of value, such as product bundles, exclusive loyalty perks, or specific dollar-off offers. This suggests that relying on a single discount tactic risks leaving significant revenue and customer loyalty on the table.
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This evolving landscape is being significantly shaped by the shopping habits of Generation Z, a demographic that represents a formidable $6 billion opportunity during the holiday sales event. The report finds that this generation operates on its own terms, with one in four using TikTok as their default search engine and nearly two-thirds stating that partnerships with content creators increase their likelihood of making a purchase. This behavior underscores the growing necessity for social-first, creator-led acquisition strategies.
Perhaps the most critical finding is the central role of trust in the modern BFCM landscape. The study found that 20.7% of shoppers have completely stopped buying from a brand due to misleading offers, while 19% said the holiday sales event permanently damaged their perception of a brand. Aggressive discounting can also backfire, with 10.6% of consumers abandoning brands they felt were cheapened by the practice.
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“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 of 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 BFCM as more than a weekend sales event and see it as a chance to strengthen their relationships with customers are the ones that win. The brands that do this well are the ones that will see that loyalty and revenue compound well beyond the holiday season.”
The report concludes with a clear call for executives to reframe BFCM as a strategic opportunity to build enterprise value. It recommends that brands carefully calibrate their discount strategies by category to balance short-term sales with long-term brand equity, prioritize discovery on the platforms where it is actually happening, and measure success not just by quarterly revenue spikes but by long-term metrics like customer retention and lifetime value.
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