What’s the best way to run a promotional discount without upsetting our existing customers who paid full price (e.g., only apply discounts to first month/year for new users, etc.)?

Based on our pricing strategy book, Price to Scale, the key is to segment your customer base carefully and create distinct pricing options that speak to each group’s needs.

Here are some actionable steps:

• Only apply discounts to new customers: Consider offering a discount just for the first month or year exclusively for new users. This avoids creating a direct price comparison with the full-paying customers.

• Segment your customer base: As discussed in Price to Scale (page 245), you should differentiate between segments—existing customers might have received different terms or negotiated discounts. By understanding these segments, you can craft promotional offers that won’t devalue the investment your long-term customers have made.

• Proactively communicate alternatives: Rather than simply lowering prices, offer existing customers alternatives that add value—such as an upgrade option or access to premium features in exchange for additional commitment. This approach is recommended in our book as a way to balance pricing while keeping your loyal customers happy.

• Introduce a new pricing line-up: Modify or create a new tier specifically for promotions. This prevents a direct point-for-point comparison with legacy pricing and helps maintain the integrity of your original offerings.

In summary, by applying discounts only to new users and creatively tailoring offers for existing customers, you can run promotions without upsetting your loyal base. This strategy, as outlined in Price to Scale, ultimately helps you attract new customers while keeping your current ones satisfied.