Tip: Increase LTV by discounting customers who are experiencing financial hardship

Kindness is more important than ever these days. And it can be financially advantageous too. Offer customers who are facing financial hardship a generous discount, and reap the rewards once they've recovered.

When customers are facing budget constraints, they will drop unnecessary expenses and find out what's really important to them. Interestingly, a recent study found that once they're flush again, they won't return to the products and services that they dropped. Instead, they'll spend more on what they continued using. In other words, if they stay with you, they may actually buy more from you than they did before the downturn. But what if your product isn't a necessity? You can be grouped with the need-to-haves by offering a temporary discount that is so significant that they keep you around anyway. Be on the lookout for signs of budget cuts, be proactive if you see them, and consider addressing this in your cancellation flow.

More 30-second growth tips?

Every day we share a tiny, bite-sized tip for growing your business. Click here to see more and get Growth Bites in your inbox 👌

Trending on Indie Hackers
Considering Cold Mailing? Here's My Personal Experience! 📧 10 comments Roast my landing page. We help SaaS businesses grow by... 8 comments Do you have 0 paying users? Let's chat 8 comments Tell me About Your Startup! + would love to learn how you use issue trackers + documentation software. 6 comments Status Dumps to be more productive, happier, and avoid burnout as an engineer 5 comments How can we improve our pre-launch landing page? 5 comments