Analyzing discount ratio to optimize pricing

Optimized pricing reduces the friction for potential customers to purchase your product. One indicator of pricing optimization is the ratio of discounted to non-discounted subscriptions. The lower this is, the fewer discounts you are giving out, and the closer your pricing to perceived value.

Adding attributes

ChartMogul automatically detects discounted customers and their location information (as recorded in your billing system) for each of our supported billing systems. The discount and location information is stored in ChartMogul and offered by default as filtering attributes. If you submit data via the Google Sheets App or Import API, you will need to specify the discount amount and geo data in order to use the filters described in this article.

Comparing discounted and non-discounted segments

In ChartMogul, you can easily compare the segment of your non-discounted subscribers to your discounted subscribers:

  1. Navigate to the Subscribers chart.
  2. Click New segment.
  3. Select a plan or plan group you want to filter.
  4. Choose filter has discount is true.
  5. Click New segment again.
  6. Select the same plan or plan group you selected earlier.
  7. Choose filter has discount is false.

What we learned

In this example comparison, we can see that the pricing of the monthly plans appears to be well optimised 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

To get more granular, we could also add a regional filter to the comparison. If you know that 70%+ of your customers come from a particular region, you might want to filter for that region in order to optimise your pricing for the target group that generates most of your revenue.

Share your analysis

Do you have a particular analysis in ChartMogul that has helped gain unique insights? Do you think it could help other users? Please contact support.

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