As with any business your products and services can be marketed effectively through the use of discounts with a recurring-payment based business. Discounting can be used to attract new customers and boost sales. Here’s three great ideas on how discounts can win you more business.
1. Offer an annual discount
Although monthly pricing can be very tempting for newer customers as there is low risk in terms of commitment, some customers will prefer to pay for their subscription on an annual basis. By offering an annual option your average customer lifetime value will be boosted as the income is guaranteed for a year. As a reward for your customers committing their custom to your product or service for a year then it would be prudent to have an annual discount. By doing this, your customers feel like they’re being rewarded for their commitment.
2. Free trials
Free trials are commonplace in the subscription billing world. Particularly in the Software as a Service sector. With SAAS products the software is often innovative and perhaps a little complicated for users who are not experts. Even if the initial sign up cost or monthly cost is modest it may be an ask for an untested product. Free trials give your customers a chance to see the SAAS products value before they make a commitment to it. In terms of marketing, SAAS reviews are often made based on free trial versions and so offering this can be a valuable tool for your marketing team.
Your recurring billing system should offer an ability to apply coupons to certain subscribers. For example, you may offer a coupon to the first few sign-ups. This could be used as a really effective marketing tool. Another idea may be to have a coupon whereby the customer has 50% off their first few months. Being able to apply flexible coupons can work really well hand-in-hand with your marketing team to tempt subscribers in.