Analyzing discount ratio to optimize pricing

Pricing optimization is key to reducing friction for potential customers and ensuring your product is perceived as valuable. One indicator of pricing efficiency is the ratio of discounted to non-discounted subscriptions. A lower discount ratio suggests that your pricing is aligned with perceived value and minimizes the need for discounts.

In this article, we’ll demonstrate how to use segmentation in ChartMogul to analyze the discount ratio and its impact on pricing strategy.

How to set up discount and location attributes

When importing data from a billing system integration (a direct connection between ChartMogul and your billing tool, such as Stripe or Recurly), ChartMogul automatically detects customers with a discount and their location. ChartMogul exposes discount and location as standard attributes — built-in data fields you can use in filters without any extra setup.

When importing data using a custom source (a manually configured data import, rather than a native integration), you'll need to specify the discount amount and location data yourself to use the filters described in this article.

Comparing discounted and non-discounted segments

To compare your discounted and non-discounted subscribers in ChartMogul, follow these steps:

1. Navigate to the Subscribers report.
2. Click the Apply a filter or saved segment button.
3. Select a Plan — is one of — the plan or plan group you want to filter, and click Add.
4. Click +, select Has discount — is true, and click Add.
5. Click the Apply a filter or saved segment button again.
6. Select the same plan or plan group you selected earlier, and click Add.
7. Click +, select Has discount — is false, and click Add.

How to interpret the comparison

In this example comparison, we can see that the pricing of the monthly plans appears to be well optimized as the majority of customers don’t have a discount. This indicates that the perceived product value is equal to or greater than the current price paid. 

Next steps

• Apply additional segmentation to break down discount usage by plan or plan group.
• Compare discount trends over time to see how pricing changes affect discount dependency.
• Test price adjustments and track whether fewer customers need a discount after each change.

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