Analyze and minimize the impact that changes to discounts will have on customer churn
Use Case
Renewal Discounting Impact Analysis
Changing the discounts you offer can dramatically affect new sales, customer churn and the likelihood of subscription renewals. With an automated process that compares the changes you plan against the impact of current discounts, you can estimate the costs and benefits to your business.
Bottom-Line Returns
Top-Line Growth
Optimize discounting to encourage longer-term deals and additional purchases
Customer Experience
Make the right change the first time and avoid confusion or churn caused by altering discount plans
Business Problem
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.
Analytics Solution
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
Discount Impact on Renewals Analysis Designer Workflow
1 – Automated Calculations
Calculate discounts at opportunity level to ensure numbers are accurate at the customer level
2 – Data Prep
Assign opportunities to the proper tier for the new discount matrix
3 – Advanced Analytics
Show impact by directly comparing current total ACV with ACV expected after new discounts
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