Dmitri Kopolovich, 20 Jan 2025
Why "Smart Discounts" Is the Modern Solution for Providers?
In a highly competitive market, telecom operators and internet providers succeed by offering flexibility and personalized approaches. The "Smart Discounts" mechanism makes discount management easy and efficient. Here’s how it works, with examples.
Promote Autopay with Discounts
Offering discounts for enrolling in autopay motivates customers to pay their bills on time. If the customer opts out of autopay, the discount is removed, and the account reverts to the standard price.

Example:
A subscriber’s monthly plan costs $ 7.
In January, they activate autopay and get a 10% discount.
In February, the bill is reduced to $ 6,3
If they cancel autopay in June, the July bill will revert to $ 7.
Combine Discounts to Boost Loyalty
Allow customers to stack different types of discounts—percentage-based and fixed amounts.

Example:
A subscriber has an internet plan costing $ 14/month with a permanent 10% discount (he pays $ 12,6).
After participating in a "Refer a Friend" promotion, he receives an additional lifetime $ 1 discount. He also adds a TV service ($ 6) to the plan and earns an extra 15% discount.
Calculation:
$ 20 (base cost) x 0.75 (10% + 15% discounts) — $ 1 (referral discount) = $ 14 total.
Set Up Tiered Discounts for New and Loyal Customers
Tiered discount systems allow for flexible conditions tailored to different customer categories:
  1. For new customers, offer significant discounts upfront to encourage long-term commitments.
  2. For loyal customers, gradually increase discounts to reward their commitment.

Example 1:
A new customer signs up on January 1. Their base plan is $ 14/month. The discount scheme is as follows:
January-April: $ 9,8 (30% discount)
May-August: $ 11,2 (20% discount)
September-December: $ 12,6 (10% discount)
Example 2:
A loyal customer who joined on January 1, 2020, receives increasing discounts:
From January 2021: 10% discount
From January 2022: 20% discount
Leverage Custom Marketing Discounts
Manually assign discounts as part of marketing programs.

Example 1:
A subscriber completes a survey and earns a 10% discount for three months. The discount activates automatically through the connected platform.
Example 2:
A subscriber accumulates 500 bonus points on a marketing platform and converts them into $ 5 credited to their account (applied automatically).
Offer Discounts for Advance Payments
Encourage advance payments by providing upfront or deferred discounts for future billing periods.

Example 1:
A plan costs $ 14/month. When paying for six months in advance, a 20% discount applies.
The subscriber pays $ 67 instead of $ 84 and receives six months of service.
Example 2:
For deferred discounts.
A plan costs $ 14/month. Сustomer pays $ 42 in January for three months of service. In April, he receives a 10% discount, reducing their bill for one month to $ 12,6.
Restrict Discounts for Debtors
Discounts are unavailable to customers with outstanding debts. Payments are first applied to the debt before discounts activate.

Example:
An operator offers a 10% discount for a $ 70 one-time payment.
If a customer owes $ 30 and pays $ 85, the $ 30 is applied to the debt, leaving $ 55. The discount doesn’t activate because the threshold ($ 70 after debt payment) isn’t met.
Manage Discount Durations
Limit the duration of discounts based on billing cycles.

Example:
A subscriber signs a contract on January 10.
Their billing cycle starts on the 1st of each month.
They receive a one-month discount starting January 10. On February 1, the discount is still active due to the billing overlap, effectively giving 1.5 months of discount. Using this feature, providers can ensure discounts are limited to a precise duration.
Conclusion
The "Smart Discounts" mechanism is a versatile marketing tool for retaining customers and enhancing loyalty through personalized discounts. It helps providers encourage advance payments, reduce payment delays, and deliver a tailored approach to every subscriber.