First-order discount

First-order discount

E-commerce

A price cut on a customer's first purchase, or a subscriber's first order, meant to win them over. Later orders are charged at the regular price.

What is First-order discount?

First-order discounts lower the risk of trying something new. They show up as welcome codes ("15% off your first order"), sign-up offers for joining an email or text list, and subscription intro prices ("first box 50% off"). The trade-off for subscriptions. A deep first-order discount brings in more sign-ups, but some of those people only wanted the deal. They cancel before the second order, and you paid for the discount without getting a subscriber. A smaller discount usually brings in fewer, steadier subscribers. Be clear about the next price. Shoppers should see what renewals will cost before they pay: "First box $15, then $30 every month." Many auto-renewal laws expect the renewal price to be shown clearly, and surprised subscribers cancel and dispute charges. Ways to structure it: - A percentage or dollar amount off the first order only. - A free gift or free shipping on the first order instead of a price cut. - A smaller ongoing subscribe-and-save discount instead of a big one-time cut. - A discount spread over the first two or three orders, which rewards staying. Measure the right thing. Judge the offer by how many discounted subscribers reach their third order, not by sign-ups alone. How Chargezen handles it: Chargezen Subscriptions applies discounts to subscription plans, and a workflow can add or remove a discount on a subscription after a given order.

Example

A meal kit brand tested 50% off the first box against 20% off. The 50% offer won 40% more sign-ups, but fewer of them paid for a second box, so the 20% offer brought in more third orders.

Why First-order discount Matters

It's one of the strongest levers for new sign-ups, and one of the easiest ways to fill a subscription program with people who leave.

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