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Should You Limit Discounts this January? A New Year’s Resolution


Cody Norton, a national sales director at Daxko, breaks down if you should limit discounts this January.

 Every dollar you bring in represents a new opportunity to better impact your community. Discounted programs and memberships are one way you serve that community. But discounts are often used as a tool to quickly bring in new members or push a new program, especially during “January Join” drives. As the new year rolls in, it’s time to rethink your approach.

Read on to learn how limiting discounts could actually result in more revenue and more opportunities to drive greater impact.

Breaking Down Lifetime Value

The dollar amount members and program participants spend with your organization over time is calculated as their “lifetime value.” Data shows that a higher discount at the time of purchase correlates to a lower lifetime value compared to those families or individuals that have a smaller or no discount. A discount-based strategy also correlates to lower satisfaction scores and higher revenue churn. Less money coming in and members with less satisfaction – it’s an equation that doesn’t look promising for the impact you’re able to make.


Shifting From Discount Based to Value Based

So, you want to reduce the discounts you offer, but how do you make that shift? Look for ways you can add to the perceived value of your offering. This strategy is shown to lead to a higher lifetime value and higher satisfaction. It can be as simple as a complimentary offer like one nutrition session or voucher for guest passes. But as a community organization, the most powerful value-based promotion will highlight the difference made with membership dollars. Showing prospective members how they can support the community’s growth shifts their relationship with you from a discount-based transaction to being part of a transformation.

From Transactions to Transformations

Every digital touchpoint is an opportunity to tell your community’s story. As you move from a transactional to transformational mindset, your organization’s website can be designed around value. Start by thinking how prospective members will interact at every touchpoint. Drive deeper engagement with a holistic, connected digital journey. What may seem like a simple digital ad can be a powerful tool to communicate the difference your organization makes. A proactive lead strategy and an immersive brand experience showcase how members are part of your transformation story.

Ready to partner with a team of experts who can help you tell that story? Schedule a call with Daxko’s Agency team today. Email marketing@daxko.com.

Cody Norton

Cody Norton, national sales director, has been with Daxko for over four years. He started at Daxko with our services team as a strategic relationship manager, helping our partners utilize Daxko solutions before moving to the sales team. He's passionate about helping nonprofit organizations find solutions that maximize their efficiency and retain more revenue.

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