A discount is a reduction in the price or rate charged for a product or service. In subscription and billing management, a discount is the same except that here it is usually applied to a subscription. Here, discounts are commonly used as a promotional tool to attract new customers, retain existing ones, or encourage customers to upgrade their subscription.
Discounts can be a powerful tool for subscription businesses as they are used to incentivize customers to sign up for a subscription or to encourage them to upgrade to a higher-priced plan. However, these discounts should be used strategically to ensure that they do not negatively impact the business’s revenue. Offering too many discounts can negatively impact the business’s revenue and profitability.
Discounts can be offered in various forms, including percentage-based discounts, flat-rate discounts, volume-based discounts, or time-based discounts.
