Saturday, November 21, 2009

Punishing Loyal Customers

I am frequently surprised by companies that offer better deals to non-customers than they do to their existing customers. At Constant Wave, we have a policy that no one should be disadvantaged because they trusted us with their business or were an early adopter. When we run special discounts aimed at acquiring new customers, we offer the same discounts to existing customers.

This is another advantage to the SaaS (Software as a Service) model. Since our customers rent the software, we can easily apply a discount to the next month's fee. A sales model would require us to rebate a portion of the purchase price to existing customers.

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