Implementing an effective discount pricing strategy

Discount pricing strategies are a prevalent marketing tool aimed at increasing sales volume, providing a temporary revenue boost, and enhancing the strength of marketing messages. While they are effective in the short term, prolonged use can lead to issues such as discount fatigue, where customers begin to perceive the reduced price as the new norm, and discount blindness, where frequent discounts become ineffective due to market saturation. To mitigate these effects, companies are encouraged to integrate discounts into the user journey, such as offering post-trial discounts or using discounts in the cancellation flow to retain customers, rather than relying solely on them as marketing tools. It's also important to strategically plan short-term discount campaigns based on market seasonality and avoid excessive frequency to maintain the perceived value of the product.