Discount metrics

A SaaS (or product) business that has been in business for any length of time should always, and on a regular basis, e.g. every other quarter, figure out why discounts are given.

You might have a bundling discount built in to your service (or product): “buy two, get one free!”

You might have a sign-up discount for longevity: “sign up for two years and get 20% off your second year!”

Your discount metrics will tell you where you are leaving money on the table.

But more importantly, it will show you where you can convert users in to paying customers, or increase the yield of a customer by offering a negligible to you (but significant to the customer) discount.