Price discounts are common with subscription services. They encourage customers to subscribe for longer terms, increase the likelihood that they will renew and reward them for buying products together. However, the overuse of discounts can lock the company into unprofitable, long-term deals, while underuse can result in customer churn and lost business.
Evaluate the impact of your organization’s discounting model on customer metrics like the total Annual Contract Value (ACV) of current contracts. Then, analyze how those metrics will change with increases and decreases in discounts. That requires connecting to sources of customer metrics, performing ACV calculations at the opportunity level and comparing that data with proposed discounts. Automating the process with data connections and analytics lets you optimize discounts before you offer them to customers.
With Alteryx, you can:
- Import current customer metrics like contract term, annual list price and current discount from CRM platforms like Salesforce
- Automate the Annual Contract Value (ACV) calculation at the customer level to arrive at exact ACV across subscriptions
- Compare existing customer contract value with expected value after new discounts to fully understand impact on metrics like Likelihood to Renew