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created at
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GrowthSmart discounting strategies: When, why, and how to offer dealsSmart discounting strategies: Use deals to drive growth without risking your app’s profitability.Vahe BaghdasaryanPublishedJanuary 9, 2025Subscription conversion rate plateauMeasuring & minimizing cannibalizationTaking some user segments out of the discounted sales or never provide discountsEstimate the incremental demand the discount will generateUsing discounts to improve ROASIn summaryDiscounting is a big part of a pricing strategy and is a common tool for consumer apps to grow and increase their revenues. Almost any app you use offers some kind of discount at some point. The main aim of the discounted sales is to do a price reduction to generate enough supplementary sales to compensate for the reduction in income. However, few companies truly understand the long-term cost of discounts. Let’s take this example – a typical mobile app that does around $100K MRR usually sells a subscription for $39.99, and typi...
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