Discounting Analysis and Discipline
An analysis of your existing discounting patterns, to determine if, and to what extent, current discounting practices are leaving money on the table or otherwise hindering your pricing performance, and how to fix them.
How it Works
By feeding your transaction and usage data into our LevelSetter platform, we can identify and measure discounting behavior that is negatively impacting revenue and creating Market Fairness vulnerabilities. We will then design a programmatic structure that defines where and how discounts are earned and ensures they are universally applied. Includes interactive data modeling to support the sales team as they negotiate discounts with their customers.
Why We Focus on Your Discounting Model
Discounting, for most software companies, is a fact of everyday life. Yet for many—due to unstructured, inconsistent and highly discretionary practices—discounting is also a serious threat, affecting average sales price (ASP), renewal size, revenue growth and even enterprise value.
But discounting can be a powerful lever for success when properly managed, particularly in hotly contested SaaS markets. For this to happen, it must be deployed within a cohesive discounting discipline; one that defines the boundaries and processes that enable you to maximize revenue and value from your customer base.
Our Discounting Analysis service will establish this discipline, help you quickly implement it and give you the tools to manage it for ongoing success. The result, based on our track record, is an immediate and sustainable 10-15% increase to the bottom-line—which we authenticate using your actual sales transaction data.
The Impact of Data on Profits and Performance
We use your real transaction data, including your sales data, to identify vulnerabilities and opportunities within your discounting practices. This will also expose price sensitivity data that we use to model the customer retention impact of any potential changes to your discounting structure. Ongoing monitoring, using LevelSetter, enables rapid adjustments to effectively respond to market shifts.
This focus on data—and your access to LevelSetter’s sales enablement features—allows for transparent discussions with customers that will strengthen their trust in your approach to pricing and accelerate negotiations.
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