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Discounts are an insidious parasite on ARR revenue streams. They disguise themselves as customer satisfaction, or coupons for future sales, or sometimes as ransom to prevent termination, or maybe even humanitarian aid for the unsustainable. In this paper we discuss the implications of discounts on ARR and their impact on a company over a long period of time, and we will review some of the approaches you may take to use these requests as catalysts for defending and growing relationships and revenue for the future. COVID-19 has changed the nature of the economic forecast. Tighter projections in the economy has caused procurement offices to begin to ask for additional reductions in the cost of subscriptions and maintenance contracts. Discounts must be based on a principle of giving value to get value and should be avoided if at all possible.
Authored By:
Vice President, Service Revenue Generation, TSIA
Vice President & Managing Director, Revenue Research & Advisory, TSIA
Publish Date: June 9, 2020
TSIA is well worth the investment. This is the one place where you can come and get a fusion of ideas that you can then marry up to the goals and objectives of your organization and boil that down into several actionable plans that you can implement over the next 6 months to a year.
Peg Rodarmel, SVP, Subscription Services, Infor