Discounting has become rampant.
What we see when we examine this further:
Discounting goes as high as 40% of the list price, while win rates in enterprise are dropping to as low as 15%.
Our recent research paper on the relationship between discounting and win rate shows that discounting actually decreases the win rate (further supported by the analysis of thousands of sales calls as part of The JOLT Effect research). Combine that with the loss in recurring revenue from the discount itself, and it quickly becomes apparent that discounting has the potential to cause a massive negative impact on revenue.
It’s time to take an alternative approach.
What can you do instead? The goal of discounting is most often to provide incentive for accelerating a decision – in other words, overcome buyer indecision. We have recently partnered with Matt Dixon and Ted McKenna, authors of The JOLT Effect, to help GTM teams learn better strategies for overcoming indecision.
We have several options for helping your team adopt the JOLT strategies – keynotes/SKOs, private courses, and a new open course available to any interested learners (see link below). These timely methods will help your team avoid discounting, and instead cement their ability to deliver recurring impact to customers.
Skills Course: Discovery Using SPICED
Facilitator Certification