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Why a $5 Surprise Beats a $10 Discount

By Hamutal Schieber, Founder of Schieber Research | Speaker | Author of The Joy Dividend

Most brands compete on price, perks, or performance, even as consumers say everything โ€œblurs together.โ€ The issue isnโ€™t product quality. Itโ€™s emotional design. Hereโ€™s the pattern I kept seeing: a small, unexpected gesture consistently outperforms a larger, expected incentive.

Surprise acts as an emotional amplifier – creating disproportionately memorable peak moments. A handwritten note or unexpected upgrade often beats a predictable discount.

The Power of Systemized Delight: Take Chewy, for example. Theyโ€™ve turned surprise into an operating practice by sending thousands of hand-painted pet portraits to customers weekly. Itโ€™s not just a campaign; it’s an emotional anchor. When a customer receives an unexpected painting of their pet, or a bouquet after their pet passed away, it creates a level of loyalty that no $10 coupon can match. You can see the impact of these gestures here.
Chipotleโ€™s variable-reward โ€œFreepotleโ€ program similarly turned loyalty into a habit through the power of the unexpected.

But surprise alone doesnโ€™t work. What differentiates high-loyalty brands is how they balance four tensions, what I call the Joy Dividend:

  • Calm Advantage: Reduce friction before adding delight. Effort predicts loyalty better than satisfaction.
  • Playful Design: Engage people as sensory, emotional beingsโ€”not just rational buyers.
  • Surprise & Delight: Create intentional peaks instead of constant noise.
  • Community & Connection: Build belonging in an increasingly isolated landscape.

The Insight: Excelling at only one dimension backfires. Calm without joy is forgettable. Delight without calm erodes trust. The brands that endure design for all four – not perfectly, but intentionally.

What to try: Pick your most forgettable touchpoint. Ask: Where are we creating unnecessary friction? Where could a small, unexpected moment change how this feels? Often, the same moment answers both.

About the Author: Hamutal (Tula) Schieber is a global strategy expert and the founder of Schieber Research, and a member of our G-CMO EastCost community. Check out her book: The Joy Dividend.

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