What should you do when a customer asks about a discount?
Customers are constantly on the hunt for bargains. Whether it’s scouring the web for coupon codes or cashing in on last minute deals to save some money, retail shoppers love to save.
In a SaaS market (Software as a Service), it’s not as simple - but buyers will often try and save money if they can. Considering the fact the SaaS market is growing 5 times faster than the traditional software market (IDC), companies must find a way to beat the competition.
One of the easiest and quickest ways to close a deal is to offer a better price than a competitor. But what you don’t want to do is erode your long-term profit margins giving too much away on the first day of a relationship with a new client. Here are a few things you can do to win new customers without making a loss:
DO:
Offer package-level discounts – Package deals are a smart way to lock a client in for a longer timescale, generating long-term value, while giving them a discount early on.
For example, take Spotify’s approach to sales – they offer a premium membership which eradicates adverts and gives users free rein for $9.99. However, their current offer gives members the first 3 months of their premium subscription for $0.99, rising to $9.99 thereafter. This gives users a considerable period to become attached to the benefits and extra features of premium, subsequently incentivising them to pay full price after their cheap 3 months.
Offer demographic-specific discounts – These types of discounts are the most commonly used in SaaS marketing, with companies targeting groups such as students and teachers and offering them a lower priced product, or offering enterprises a volume discount. Due to the volume and package requirements they entail, they are normally issued on a case-by-case basis, preventing the perceived value of the product from being damaged.
DON’T:
Overtly offer discounts – Remember that when you impose a discount, you are typically shifting the focus from your product and instead placing it on the price. Keep in mind that if you engage in discounts too often, you will never escape your brand being synonymous with a markdown. Shouting about a sale on your website, social channels and through advertising immeasurably reduces the value of service, so avoid this at all costs.
Offer time-sensitive discounts – Another block many SaaS companies stumble at is using flash-sale strategies in their discounts, for example “Sale ends Monday! Get it while you can!”. This provides a fear-factor, something persistently used by discount sofa and car garages - not a tactic you want your high-end software company associated with.
With these methods in mind, when a potential customer asks about sales on your products, you should have a simplistic system at the ready to guide them through the discount process – converting leads into clients at the click of a mouse. Or the sharing of a screen.
Simple Screen Sharing
With a screen share tool that works on any device and any browser, you can initiate free screen sharing sessions, without the requirement of any installations or plugins. This will bring unparalleled benefits, as the customer can be seamlessly ushered through your service with maximum clarity and ease – effectively breaking down the communication barriers allied to virtual interactions.
The Process
Using screen-sharing in the sales process is effectively a free, virtual meeting. When offering discounts, it’s a great way to give the potential buyer full transparency whilst persuasively presenting the benefits of using your service.
- Let’s say you have a customer browsing your website. They will see a button offering them a live demo of your software, which they will presumably click if they’re interested in the service. Depending on how many of your agents are available, the button will offer an instant live demo or a request for a live demo in the near future.
- Next, the customer will be prompted to input their phone number, at which point every sales-person configured in your organisation will receive a notification on their screen.
- The sales-person will then initiate a phone call with the customer, allowing them to mirror their screen enabling collaborative 2-way communication - no matter the device or browser. CrankWheel also works well on Google Chrome OS, a software that notoriously has tricky compatibility.
Screen-sharing and instant demos are particularly handy when it comes to hammering out the commercial arrangements of a new deal. In the scenario where a client asks about discounts, using screen-share, you can open up a cost/benefit analysis excel spreadsheet and talk them through each stage - demonstrating the advantages of your software, pricing and the savings on offer.
When sales need to happen quickly, having an easy, go-to software to facilitate the selling process is invaluable. So, it’s good to know that you can secure screen sharing for free today, providing you with specialised tools to bridge the gap between customer and seller. Communicate effectively with prospects and turn them into clients.