Pricing Strategies: #4 Counting on Discounts

"Is there any chance I can get a little discount on this month's service?"

Maya hears this almost every time at her fitness studio. She offers monthly subscription plans for various services, including yoga, strength training, wellness sessions, and personal training. Customers loved the classes, but they also loved looking for small savings whenever they could.

Some were first-timers hoping for a welcome deal.

Some were long-time clients asking for a loyalty benefit.

Others were referred by friends and were hoping for a referral discount.

 

At first, Maya tried to handle discounts manually by editing the invoice, creating a custom price and applying ad-hoc reductions. But as her studio grew, with multiple centres and more clients requesting discounts, she clearly understood that discounts weren't just giveaways; they were a strategic way to drive signups, retain customers, reward loyalty, and promote sales.

Unlike Maya, there are several thousand businesses and service providers who have considered offering discounts, but they end up creating a mess or stop midway due to an inappropriate configuration.

In this article, we are going to cover how Coupons in Zoho Billing offer convenience for giving discounts, setting up logic, and being transparent in their offerings.

Coupons in Zoho Billing 

Coupons allow you to apply controlled, rule-based discounts to subscriptions, invoices and addons. They help businesses attract customers, increase conversions and maintain long-term loyalty without losing control over revenue.

Zoho Billing's coupon system includes a wide range of powerful capabilities. Let's explore each of them in detail.

Discount Type 

Zoho Billing lets you design coupons with the discount calculation you want. It is done in two ways,

• Percentage-based discount. (Example 10% off)

• Flat rate discount. (Example $10 off)

Strategic Advantage:

Percentage discounts attract attention. It can be used for promotional sales and new customer incentives. At the same time, flat rate discounts maintain margin clarity, which can be used for targeted reductions or compensation credits. Align your discount type with your revenue model.

How are Discounts Deducted? 

The discount application affects how the subscriber actually experiences savings. Zoho Billing supports,

• Plan-level discount: Applied only for subscription plan pricing.

• Addon level discount: Applied only to selected addons.

• Invoice level discount: Applied to the total invoice amount.

• Recurring or one-time discounts: Apply either repeatedly or once, depending on how they are defined.

Strategic Advantage:

Control precisely where the discount applies so that promotions don't unintentionally reduce assured revenue.

Setting Up Expiry 

Coupons can be time-bound, ensuring urgency and promotional control. You can choose between,

• No expiry

• Specific calendar date for a limited promotional period.

Strategic Advantage:

Use expiries to create urgency ("Offer ends this Sunday!"), regulate campaign periods and avoid long-tern unintentional discounts.

Maximum Redemption 

Not all discounts are meant to be universal. Zoho Billing lets you limit how many times a coupon can be redeemed across all customers. You can set the redemption times as the number of times the discount gets applied to a subscription.

This is done to

• Prevent discount misuse.

• Keep promotions budget-friendly

• Make time-based campaigns more straightforward to manage.

Strategic Advantage:

Scarcity increases desire. Limited redemption coupons can rapidly boost signups.   

 Advanced Coupon  Management

Advanced Coupon Management addresses key challenges, including coupon duplication, eligibility control, and improved discount management. By enabling advanced coupons, the following configurations can be set up:

Customer Eligibility:

Advanced Coupon lets you define who can redeem the coupon. This is ideal for targeting specific groups, such as elite customers, new sign-ups, or high-value subscribers.

Example: Providing a 20% first-time discount for New signups.

Product Eligibility:

By creating separate coupons for different products, Advance coupons let you specify which product, plan, or addon is eligible for a discount. This way, you can configure coupons globally for all products.

Example: A coupon can be valid for "Plan A" and "Addon A" from "Product A", but restricted from use on "Product B".

Maximum Redemption Per Customer:

Businesses can now limit a coupon for a customer for a specific number of times, preventing excessive redemptions.

Example: A customer can redeem a 10% discount coupon for only two cycles, after which it becomes invalid.  

Strategic Advantage:

Advanced coupons help design lifecycle-based discounts (onboarding, reactivation, upsell nudges, etc) that increase retention.

Additional Coupon Codes 

Zoho Billing lets businesses generate multiple coupon codes linked to the same discount rule. You can create this in bulk or import it into the system, and it can be used.

A primary coupon is created by defining the discount structure (percentage or fixed amount), the maximum number of redemptions, and the expiry date. You can generate multiple coupons that link back to the Default Coupon in the following ways:

​
Manually Entering Codes: If you want to assign specific codes for tracking or personalisation. This will be helpful for small promotional campaigns.

​
Auto-Generate Codes: If you are running a large-scale campaign, you can let the system generate a batch of unique codes in bulk by defining the prefix, suffix, and the number of characters it takes.

This helps in,

• Tracking which marketing channel performs best.

• Personalising codes by customer segment.

• Running simultaneous campaigns using different code names.

• Avoiding manual discount creation to prevent duplication.

Strategic Advantage:

Multi-code campaigns let you measure Return on Investment across social media, email, influencers, events, referral sources and so on, all with the sample discount logic.

 What Coupons Do for Your Business 

Coupons are more than just discounts; they are a customer behaviour tool that drives more than just monetary advantage for a business. Different coupon configurations provide different outcomes.

They help you,

• Increase signups with welcome offers.

• Reactivate old customers with comeback incentives.

• Encourage plan upgrades with timed discounts.

• Drive referral and viral sharing.

• Introduce urgency that pushes customers to act.

 Coupons help businesses attract, retain, and re-engage customers while maintaining complete control over the revenue. Not all discounts are equal, but with the right system, they become a competitive advantage.

Up Next: Stay local & sell global.

 

• Topic Participants

• Hari Hara Sudhan. S

  

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