Based on what our SaaS pricing book, Price to Scale, explains, heavy discounting through accelerators or deal platforms tends to accelerate sales but often attracts deal-seekers who may not convert into long-term, loyal customers. Here are some key points from the book:
• Heavy discounting can speed up the sales cycle, but as noted on page 270, it may have negative long-term impacts on the brand and overall profitability. The deep discounts often generate short-term revenue but might not translate into enduring customer relationships.
• The book emphasizes the importance of segmenting your customer base. Not every discount fits every customer. For instance, some customers who sign up at a deep discount may simply be bargain-hunters rather than long-term users. Strategic segmentation can help tailor offers and pricing structures to attract customers who are more likely to stick around.
• Instead of unilateral deep discounts, Price to Scale recommends offering alternatives such as upgrades or bundled add-ons that require a commitment (such as longer-term usage). This approach helps manage customer expectations while positioning your product for long-term relationships.
In summary, while participating in platforms like accelerators or AppSumo-type deals can generate quick traction, our book advises a careful, segmented strategy to ensure you're attracting customers with lasting value rather than just deal-seekers. It's important to maintain a balance between accelerating sales and building a sustainable, loyal customer base.