Discounts are a great way to attract new customers with the possibility of converting them to long-term subscribers. For instance, a customer signs up for one-year subscription, and you give them a discount by making the first month free. After that, you charge them at the regular rate. With Zuora's application, this goal can be achieved by using our product catalog's discount charge models.
Discount charge models are special for the following reasons:
This solution below will walk you through using the discount charge model in context of a few different use cases.
Zuora's product catalog provides two discount charge models - Discount-Fixed Amount and Discount-Percentage - which can be used to offer your customers a variety of discount options:
A customer signs up for a monthly subscription and gets a $100 discount for their first billing period. Here are the steps:
As a result, your product should have one rate plan with two charges as shown below.
When you add the product to your subscription, it should have one rate plan with two rate plan charges as shown below.
With this set up, the invoice for the first billing period will include a $100 discount to this rate plan, and this rate plan only.
Please note if your tenant has proration enabled, discount charges will be prorated accordingly with all your subscription charges. For example, if the first invoice bills for a prorated period of 15 days so the monthly charge is prorated at $250, the discount amount is prorated at $50 as well. The remaining $50 discount amount will be included in the next invoice.
A customer purchases two different products, and you want to give them 50% off for both of these products for their first billing period.
Here are the Steps:
As a result, your product should have one rate plan with one discount charge as shown below.
Discounts can also be used as a promotion for upselling your products.
You want to offer your customers who are on a monthly subscription a $100 discount if they upgrade to an annual subscription. Here are the steps:
You can add the discount as an additional product rate plan charge to the annual product which is used to replace the monthly product in your customer's subscription.
With this set up, when the customer's subscription converts from a monthly to annual one, the customer will receive $100 discount.
See Discount Charge Models for information on:
If your subscription has negative charges and discounts which are supposed to apply to these charges, Zuora will not discount negative amounts. By design, discounts will apply to positive charge amounts only. Sometimes, negative charges are used to provide customers credit, and discounts have been designed to not give customers even more credit.