A coupon refers to a discount or promotional code that is offered to customers to encourage them to subscribe to a product or service. In a subscription-based business, they are a powerful tool to attract new customers, retain existing customers, and increase revenue.
Coupons typically come in the form of a code or a link that customers can redeem at the time of checkout. The code or link is usually entered into a designated field on the business’ subscription management software, which then applies the discount to the customer’s purchase.
Coupons can take many forms, such as a percentage off the total subscription price, a fixed amount off the subscription price, or a free trial period. The type of coupon offered will depend on the business’s marketing objectives and the target audience.
One of the main benefits of using coupons in a subscription billing software is that they can incentivize customers to try out the product or service. For example, a business might offer a free trial period to new customers, allowing them to test out the product or service before committing to a subscription. This can be particularly effective for businesses offering digital products or services, where customers may be hesitant to commit to a subscription without first trying it out.
Coupons can also be used to reward loyal customers, encouraging them to continue their subscription or upgrade to a higher-priced subscription plan. By offering discounts or other promotional offers to existing customers, businesses can build customer loyalty and increase customer lifetime value.