We have implemented the new app editions, adding a new advanced edition to our offering.
Now that we have deployed this, we are looking to manage expectations with customers, and want to offer them promo-codes to upgrade.
My question is, how can we manage discounts that only apply to an edition, especially if the customer moves to the advanced edition in the middle of a billing term? Here is an example, with some made-up numbers for simplicity.
- A customer is on one of our products, on a 1 year term. They have a term running from Jan 1 2025 to Jan 1 2026. They are paying 2000 USD p.a.
- They upgrade to a new edition on July 1 2025, so halfway (6 months) through their term. The additional cost of this is 50% of the base price. This would normally cost them 1000 USD for a full year, but the cost is pro-rated to 500 USD for the rest of 2025.
- On Jan 1 2026, they will renew for the advanced edition, at a cost of 3000 USD for the year (2000 USD for standard, and +1000 USD for advanced).
The customer may be surprised by the new feature, and be hesitant to pay in the middle of their term. In this situation, we would like to offer them a discount. For example 50% on the upsell cost of the advanced edition. They would therefore only pay an additional 250 USD for the rest of 2025 to be on the new edition, rather than 500 USD.
My questions:
- Is there anything in my summary that is obviously wrong, or won’t work?
- How can we offer a discount on just the upsell? Is this through a promo-code on the base product?
- In my example, what will happen on Jan 1st 2026? The standard edition will have run for 1 year, and the advanced edition for 6 months? Will these co-term going forward?
- How can we avoid that any discount carries over to the 2026 renewal of the standard edition?