Discounts and special offers are powerful marketing tools that can boost conversion rates by leveraging urgency and pricing psychology. However, when these tactics are exploited, they can drive customers away and cheapen your brand in the process. Therefore, setting up the right timing for your offers is as critical as finding the right amount. In this blog post, we will explore some proven discount strategies for publishers to help them strike a balance between conversion and retention1.
Conversion vs. Retention
Conversion and retention are two halves of the offer puzzle. One helps you grow, and the other, persist. Together, these strategies will help you reach and surpass the milestones you're aiming for. However, because they deal with different ends of the business, one will usually come at the expense of the other. Conversion is a short-term goal, while retention is a long-term goal. Conversion focuses on how many people and dollars are coming through the door right now, while retention asks how long do our customers stay and which of them stay the longest? Both are needed for a successful, sustainable subscription-based business1.
Pricing Your Offers
Pricing your offers is a delicate balance between conversion and retention. Here are some tips to help you find the right balance:
- Reward retention by increasing your prices at regular increments. Earlier supporters will pay less than later ones, and if they ever leave and return, they’ll lose their lower price advantage.
- Lead with great content and only rely on discounts as the final nudge. Value should be the driving force of growth, not just a low price.
- Discounts and special offers are powerful, but they are not magic. They should be used to complement your content, not replace it1.
Creating Discount and Trial Offers in Ghost
Ghost offers a powerful and flexible system for creating discount and trial offers to convert more paid customers and grow your audience. The offers system in Ghost allows you to offer shareable discounts to your audience, as well as offering free trials to your premium tiers. The offers page appears in Ghost Admin when you have an active Stripe connection in place. To create a discount offer, you can follow the steps outlined in the Ghost Help Center4.
Ghost offers a variety of resources to help publishers build a business in the creator economy. The Ghost resources page includes articles about building a publishing business with memberships and subscriptions, tips about marketing, growth, finance, and more5.In conclusion, finding the right balance between conversion and retention is crucial for publishers to succeed in the creator economy. By following the proven discount strategies outlined in this blog post, you can strike a balance between conversion and retention, lead with great content, and use Ghost's powerful system for creating discount and trial offers to convert more paid customers and grow your audience14.