Unlock New Revenue by Rewarding Loyal Customers with Incentives: Pricing Strategies for Existing Clients

As businesses continue to evolve, so should strategies to increase revenue. One of the most effective tactics for boosting customer loyalty and growing revenue is offering incentives to existing clients.

Rewarding loyal customers with incentives such as discounts, free products or services, exclusive promotions, or any other form of recognition incentivize repeat business and lowers CAC for part of the new revenue.

Upselling is a fundamental component of any go-to-market (GTM) plan, especially in today’s industry. To start crafting your upsell strategy, you must comprehend what your consumers want and value. By conducting interviews and surveys, you can learn more about their desires and how much they’re willing to pay.

This information will inform the creation of practical upselling opportunities and pricing incentives that entice customers to buy more from you.

Developing Upsell Plays

Once you have a good understanding of your customer base, you can begin to develop upsell plays that are tailored to meet their specific needs.

These plays should be tailored based on the types of products and services that best suit the particular needs of each customer segment.

For example, if you have a SaaS product that offers different pricing tiers, consider offering discounts or free trials to encourage users already paying for one tier to upgrade to the next. This could be especially effective if you’ve identified certain features that customers find particularly useful or attractive.

Consider providing discounts and complimentary trials to your target market to maximize profits. Additionally, you can gain more revenue from current customers by getting to know their requirements and introducing them to new features or services that are better priced than what they’re using currently. Discovering the solutions which appeal to your patrons as well as those within your capability of development is critical to ensuring success.

Pricing Strategies

Crafting tailored upsell plays for each consumer segment is necessary, but creating a pricing strategy that brings maximum effect should be remembered.

Consider offering tiered pricing models or discounted subscription rates to incentivize customers who may not be willing to make a long-term commitment immediately. Moreover, bundling products and services together can offer more value than selling them separately; this is an effective strategy for generating sales from existing customers who need help understanding the full potential of purchasing multiple items simultaneously.

To supercharge upselling, consider these pricing incentives:

• Overall-purchase volume incentives: Offer a discount for customers who purchase a certain amount of products or services per year. For example, offer a 10% discount annually for customers who buy at least $10,000 worth of products or services.
• Product-specific purchasing incentives: Offer a discount on a specific product for customers who purchase a certain number of monthly units. For example, offer a 15% discount on a particular product for customers who buy at least 10 units per month.
• Portfolio breadth incentives: Offer a discount on all products or services for customers who purchase at least one product or service from each of your product lines. For example, offer a 5% discount on all products or services for customers who purchase at least one product or service from each of your product lines.
• Purchase volume growth incentives: Offer a discount for customers who increase their purchasing volume by a certain percentage compared to the previous year. For example, offer a 7% discount for customers who increase their purchasing volume by at least 15% compared to last year.

Before you establish the best pricing incentives, be sure to take into account the following points:

• Overall-purchase volume incentives: Make sure to make this very transparent and avoid situations where the customer misunderstands the incentive program. Consider offering a tiered discount system, where customers who purchase more receive a higher discount.
• Product-specific purchasing incentives: This is a great way to go for SaaS companies looking to grow their core product. Consider offering volume discounts on the software but not on professional or low-margin services. This will encourage customers to purchase more of the product you want to grow while generating revenue with better margins from other services.

To sum it up

Pricing plays a pivotal role in the go-to-market plan of any Software as a Service (SaaS) business.

When you understand your customer’s desires and adjust your pricing to fit their expectations, not only will you be able to develop from existing customers instead of relying strictly on costly acquisition campaigns, but it is also a cost-effective way to bring in more revenue.

To motivate customers, consider offering discounts based on the total number of items purchased, product-specific buying habits, portfolio size, and growth in purchase volume.

Growth Hack different pricing motivations and research to determine your customer’s preferences and requirements before using any pricing approach.