Growing Revenue: Five Alternatives to Discounting

Description
Discounting may be an effective element of a company’s larger strategy. It may be used as a loss leader, with the objective of gaining greater revenue from ongoing customer relationships and sales. Some companies use discounting as a loyalty reward.

However, when discounting is the go-to tactic, to prompt every transaction or to get every contract signed for example, then companies can unintentionally enter a race to the bottom.

And there are other corrosive effects that can increasingly make price the most singularly important factor in customers’ purchase decisions. Price can then overshadow the value of your B2B or B2C product or service. That only accelerates the race to the bottom.

Many of a company’s objectives can be achieved without discounting. That empowers companies to use the tactic more selectively. By being more selective, companies preserve prospects’ and customers’ perceived value, and maintain—even grow—their revenue.

To get you started, here are Five Alternatives to Discounting which you can apply or adapt according to what is right for your company. Some alternatives are data-driven while others encourage a more creative approach to how you present your products or services.

These alternatives can help you avoid the revenue-shrinking race to the bottom that often results from routine discounting.