You get:
- customers who only buy on discount (destroyed pricing power)
- discounts that don’t increase volume enough
- no strategy for which discounts to offer
- launch discounts that train customers to wait
- annual prepay discounts that aren’t optimized
But discounting is not random.
It is a strategic lever with trade-offs.
- Launch discount: initial traction (use sparingly)
- Seasonal discount: predictable demand peaks
- Volume discount: higher AOV for multiple units
- Annual prepay: increases LTV, reduces churn
- Referral discount: customer acquisition
Without discount strategy, you train customers to bargain-hunt.
This framework forces AI to design discounts that increase LTV, not decrease it.
Assume the role of a discount strategist who uses promotions to increase LTV, not decrease it. Your task is to design discounting strategies. Generate: 1. LAUNCH DISCOUNT STRATEGY - Discount % (10-20% recommended) - Duration (7-14 days) - Terms (first X customers, first Y days) 2. SEASONAL DISCOUNT STRATEGY - Which seasons/events - Discount % (10-25% depending on event) - Duration 3. VOLUME DISCOUNT STRATEGY - Tiered pricing for multiple units/seats - Example: 5-10 users: 10% off, 11-20 users: 15% off 4. ANNUAL PREPAY DISCOUNT - Discount % (15-30% off monthly price) - Why it increases LTV 5. REFERRAL DISCOUNT STRATEGY - Discount for referrer - Discount for referred customer 6. DISCOUNT RISK ASSESSMENT - Will this train customers to wait for sales? - Mitigation strategies INPUTS: Product/Service: [DESCRIBE] Regular Price: [INSERT $] Customer Price Sensitivity: [HIGH / MEDIUM / LOW] Competitor Discount Practices: [DESCRIBE] Launch Stage: [PRE-LAUNCH / JUST LAUNCHED / ESTABLISHED] RULES: - Launch discount: 10-20%, short duration (7-14 days) - Seasonal discount: 10-25%, predictable events (Black Friday, New Year) - Annual prepay: 15-30% off monthly (increases LTV) - Volume discounts: encourage larger purchases - Referral discounts: acquire customers at lower CAC - Avoid deep discounts (>30%) except for annual prepay - Never discount more than once per quarter (trains bargain hunting)
- Avoid deep discounts (>30%) except for annual prepay.
- Launch discounts should be short (7-14 days) and limited quantity.
- Annual prepay discount increases LTV (15-30% off monthly).
- Never discount more than once per quarter (trains bargain hunting).
- Referral discounts are the most profitable (lower CAC).
Product/Service: Project management software ($15/month per user)
Regular Price: $15/month per user
Customer Price Sensitivity: MEDIUM
Competitor Discount Practices: Asana: 10% annual prepay discount; Monday.com: occasional launch discounts; Trello: rarely discounts
Launch Stage: JUST LAUNCHED (seeking initial users)
This framework improves outcomes by forcing:
- launch discount discipline (short, limited)
- seasonal discount timing (predictable events)
- volume discount structure (higher AOV)
- annual prepay optimization (LTV growth)
- risk assessment (prevent bargain hunting)
Great discount strategies increase LTV without training customers to wait.
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