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

When importing data from a billing system integration, ChartMogul automatically detects customers with a discount and their location information. ChartMogul offers discount and location as standard attributes. When importing data using a custom source, specify the discount amount and location data 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 Add Filter.
  3. Select a Plan or Plan groupis one of — the plan or plan group you want to filter.
  4. Click Add Filter and select Has discountis true.
  5. Click Add Segment and Add Filter.
  6. Select the same plan or plan group you selected earlier.
  7. Click Add Filter and select Has discountis false.

What we learned

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. Screenshot of the Subscribers chart with segments as described here.

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 optimize 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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