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Leverage your subscription business with the right promotional strategy

September 24, 2019

Promotions relevant for subscription business: loyalty, referral programs, flash sales, unique promo codes, gift cards. Promotion ideas for SaaS, PaaS.

Leverage your subscription business with the right promotional strategy

Whether you are already running a subscription business or just thinking about it, there are 2 questions you probably ask yourself all the time:

-    How to increase MRR*

-    How to decrease the churn rate**

Of course, there are many factors that affect both. Today we will deep dive in your promotional strategy.

You probably already know what the different subscription pricing strategies are, whether it is landing point offering, showcase offering, beacon offering, K.I.S.S., or any other fancy-sounding name and you have probably already read all possible articles about freemium*** and free trial****. It might already seem a bit overwhelming and complex to you…

To tell you the truth, the more sophisticated pricing strategy, the more your business can benefit from it, as long as it is continuously being measured and optimized and does not over-complicate it for the user. All you want is to get as much as your clients are willing to pay for your solution (without discouraging new customers with your prices). You should keep your prices at the sweet spot to establish a long-term relationship with your customers and keep them loyal.

How to manage a complex pricing scheme without complicating it for the users?

Let’s start simple – your pricing strategy should go hand in hand with a promotional strategy. You should first establish set prices for basic packages that are easily understandable for the customers and bring you the desired level of income. Then, for different segments, you could vary those prices with your promotional strategy, to fight churn, to increase your MRR, and to gain loyalty.

What are your possibilities for the subscription business?

As a subscription business, your pricing should not be limited to only the basic pricing. Just like any product- or service-selling company, you can run promotions, implement loyalty programs, distribute vouchers, and be creative.

Many subscription businesses, whether it is SaaS, PaaS, magazine subscription, gym subscription, beauty boxes, or all-boxes, already do it; here are a couple of examples:

Subscription boxes coupons:

Bloomberg Businessweek:

Bloomberg promotion SaaS


Promotion SaaS Evernote


Groupon Promotion SaaS

Microsoft Office:

Microsoft Promotion SaaS

Ideas for promotions for Subscription Companies

Possibilities for promotions are limitless, so we would like to give you a few inspirations, based on the purpose:

1. For acquiring new clients, it is possible to offer discounts on subscription, free trials, and vouchers. This offer could be limited in time, to increase interest in the periods of lower interest or for specific customer segments you want to enter. Time limitation of the offer helps you fight promotion fraud – users of your subscription cannot timelessly use free trials/discounted offers by registering under different names because the offer will have an expiration date. Another benefit is – if those discounts are only for a limited period of time and not for all customers – it should not change your brand positioning and your price positioning, which is important. You do not want your clients to think that your basic prices are “too high” in case there is no promotion currently going on.

2. For rewarding your current customers, you could offer loyalty programs – the longer they stay with their subscription, the cheaper it would get; they could possibly get subscription plan upgrades free of charge, special trainings, collect points they can use to pay their subscription, etc.

3. For upselling your portfolio, you could offer temporary subscription plan upgrades to existing customers, either by giving them a special code (voucher) they could pay with or by running an automated upgrade for a specific period of time.

With those (and other) promotional mechanisms you can increase the MRR, decrease the churn and gain loyalty without changing the basic pricing of the subscription. You can segment the customers or potential customers, target them via different channels with your limited-time offerings, and measure the response.

How to implement such a complex promotional strategy?

Voucherify can support your subscription business’ omni-channel, personalized promotional strategy. We offer built-in reporting, great customer support, and close to no time of implementation. Learn more here or contact our sales. We will happily support you and your business in reaching your business goals.

*MRR = Sum (Monthly Recurring Revenue of all paying customers)

**Churn Rate = (Number of cancellations in a period / Total number of subscriptions in that period) X 100

***A freemium offering is a feature limited or stripped down version of your product that you offer for free forever.

****A free trial offers the full product experience for a limited time (e.g. 30 days). It lets you show prospects of how great your product is and provides an effective way of qualifying prospects.

Personalized promo campaigns convert

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