Many SaaS companies believe that coupons are effective only for supermarkets and retailers. Big mistake. Coupons can be successfully used in the SaaS business to reach potential customers and increase profits.
Coupons and the SaaS business
Are you looking to get more leads, more customers and therefore more profits for your SaaS business?
Typically, coupons are used to reward loyal customers, but in the SaaS space you can use them to reduce the churn rate, extend the lifetime value of a customer and lower the customer acquisition cost.
Here you are 6 ideas to leverage an effective coupon strategy and increase the subscribed members of your service.
1- Never leave a cart abandoned again
Sometimes users add your product to their cart, but then they leave before completing the checkout process. They were clearly seriously interested in purchasing your service, but then they dropped. Wouldn’t it be nice to re-engage these users?
You have already spent a huge effort (and the large part of your CAC) to acquire this lead: a discount coupon could convince them to come back to your service and complete the checkout process letting you capitalize your paid adv.
2- Turn trial users into paying customers
One of the main struggles into the SaaS business is turning trial users into paying customers.
Coupons represent a great instrument to reduce your subscription churn.
Avoid sending discount coupons to every trial users and monitor how people is using your solution: you could offer a smaller discount to frequent users and a bigger discount to users who log in to your application only a few times during the trial. You could even offer an extended trial coupon to users who did not access your application during the free trial: give them another chance to appreciate your solution! And don’t forget an outbound ping of any type to nurture them.
3- Upgrade it
Once you have a paying customer, you need to persuade him to spend more on your application. Coupons can definitely help you to reach this goal: offer your customer a special discount if they upgrade their current subscription. Again, you can monitor your best customers and offer the discount only to them.
4- Avoid product churn
If you distribute your product with a subscription plan, you certainly have users who do not renew expired subscriptions, or with pending invoices.
Re-engage customers sending them a discount coupon and attract them to your solution again!
If you sell more than a product create bundles and offer discounted coupons! A frequent user of an application could easily redeem the coupon and become a frequent user of a bundle of applications.
6- Limited time only!
Coupons should expire. If you want to persuade customers to redeem your coupons, you need to create limited time only offers: make your customer feel like they are missing an incredible opportunity. Make sure the coupon really expires after a certain period of time, not to lose your credibility.
With a little bit of creativity you can use coupons for many promotional activities in your SaaS business.
Since we know how effective coupons can be, the Cloudesire platform supports any kind of coupon: discounted, extended trial or even fix price.
Watch this video to learn how easily you can create a coupon through our platform.
Do you want to learn more about coupon management in the Cloudesire marketplace?