.png)
Estd 4.22.2023
Based on our pricing strategy book, Price to Scale, the general consensus is that discounting—whether through structured deal discounting or targeted promotions like coupon codes—needs careful handling.
Here are some key takeaways:
• Targeted Promotions vs. Broad Discounting
– Coupon codes, when used as a targeted promotion (for example, to track campaigns or incentivize specific customer segments), can be quite effective.
– However, if coupon codes are too widely available or applied indiscriminately, they risk making your product appear “cheaper” and may erode its premium positioning.
• Context of Discounting in B2B SaaS
– Our book emphasizes that discounting is a common part of the B2B SaaS landscape, with commercial deals generally seeing discounts up to 20% and enterprise deals even higher. This highlights that discounting isn’t inherently negative but must be framed within your pricing structure.
– It’s important to set your list prices at a level that allows controlled discounting to appear as a strategic, rather than a standard, pricing practice.
• Practical Application
– Use coupon codes sparingly and strategically: apply them to well-defined segments or specific campaigns, ensuring that they support your overall pricing strategy while keeping the core value proposition intact.
– Monitor the impact of these promotions to ensure they drive the desired behavior without compromising the perceived value of your product.
In summary, our book Price to Scale suggests that coupon codes can be a powerful tool for targeted promotions and tracking if used judiciously. The key is to avoid indiscriminate discounting that might signal a lower quality product and instead align coupon use with a well-thought-out, segmented pricing strategy.