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Split Hero

Black Friday: Why We Don't Believe in Discounts

Introduction to Black Friday Promotions

Black Friday has long been associated with a frenzy of deals (who doesn't love a bargain?), attracting both retailers and consumers into a whirlwind of spending. Every year, we see countless businesses slashing their prices, aiming to draw in customers looking for the best bargains. This phenomenon has shaped the holiday shopping season, creating a sense of urgency and excitement around massive discounts. However, we choose to tread a different path when it comes to our approach as a SaaS company.

Our philosophy centres on providing lasting value to our users. Reducing prices merely to join the Black Friday hype would undermine our core principles. Instead of short-term deals, we prioritise delivering consistent quality and long-term value.

Our platform is designed to be an integral part of our clients’ operations, tools they rely on daily to drive their businesses forward. Offering a discount once a year suggests that our software’s value is flexible, which contradicts the message we want to convey: that our solutions are essential and worth every penny, every day of the year.

Our Perspective on Price Reductions

Discounts have always been tricky for us. As a small team, we put considerable effort and resources into developing our platform, making every investment count. These investments aren't just monetary but include time, creativity, and the goal of delivering the best solution for our users. We believe that our pricing should reflect this effort and the continuous value it brings.

By not engaging in the widespread discount culture of Black Friday, we also aim to avoid the pitfalls of fostering unrealistic expectations. We want our customers to understand that our pricing is carefully considered to reflect the value of our platform. This approach allows us to maintain the quality and support our clients have come to expect, rather than compromising on these aspects to accommodate a temporary price drop.

We want our users to feel confident that they are making a wise investment that will yield long-term benefits, irrespective of the time of year they purchase.

It's also important to us to ensure fairness among our customer base. When someone buys our software, they should do so knowing they are getting the best possible value at that moment. This avoids any feelings of regret or disappointment if a discount were to be offered soon after their purchase. By maintaining consistent pricing, we reassure our clients that they are always receiving fair value, thereby reinforcing their trust in us.

The Issue of FOMO (Fear of Missing Out)

We understand that discounts can create a sense of urgency and excitement, but they also bring along an unintended consequence: the fear of missing out (FOMO). This is constant during events like Black Friday/Cyber Monday, where you are constantly bombarded with limited-time offers and exclusive deals. For our SaaS company, this is a scenario we prefer to avoid.

Imagine a customer who has recently purchased our software at full price. Just days later, they see the same product being offered at a discounted rate during a Black Friday sale. Naturally, this would lead to feelings of frustration and regret, undermining their initial satisfaction and enjoyment of our platform. This is not the experience we want for our users.

If you end up going the route and offering frequent discounts, this can create an unhealthy cycle of waiting. Customers might delay their purchases, anticipating the next sale, which delays their decisions and, being honest, impacts our revenue stream.

In the end, avoiding widespread discounts helps us maintain the integrity and value of our platform. It allows us to offer a more equitable and satisfying experience for all our customers, free from the disruptive influence of FOMO.

Prioritising Customer Loyalty

We believe nurturing long-term relationships with our customers is far more valuable than any price cuts. Our commitment to rewarding loyalty means offering meaningful perks that go beyond the superficial allure of a one-time discount.

For instance, loyal clients might receive exclusive access to new features before they are widely released. This not only gives them a competitive edge but also reinforces the trust they have placed in us.

Providing tailored solutions is another key benefit for our larger enterprise clients. By thoroughly understanding their specific needs, we can customise our platform to serve them more effectively. This personalised approach not only improves their experience but also shows our commitment to their success.

Our strategy to prioritise loyalty helps us cultivate a community of brand advocates. These customers are not just users of our software; they become genuine believers in our products, often recommending them to others within their networks. This word-of-mouth endorsement is invaluable and far more impactful than any temporary sales boost a discount might provide.

Occasional Circumstances for Price Cuts

While our general stance is to avoid frequent discounts, there are specific circumstances where we find it beneficial to offer price reductions. Such discounts are not offered lightly. They are strategically timed to coincide with significant upgrades or new features that we believe will substantially benefit our users (hint - keep an eye out in Q1 2025). This approach serves not merely as a sales tactic but as an opportunity for our clients to explore and adopt the latest enhancements we have developed.

These discounts are available to both new and existing customers, ensuring everyone benefits.

Another scenario where we might consider a price cut is during the early stages of market entry for a new product. This is designed to gather initial user feedback and build a base of early adopters who can offer valuable insights. In these cases, the goal is not just to attract new customers but to foster a community of users who can help us refine and perfect the product.

Ultimately, any decision to offer a discount is made to add value rather than simply reducing cost. We remain committed to our core philosophy of providing high-quality, valuable software that meets the needs of our customers, and any occasional discounts are carefully evaluated to ensure they align with this objective.

Black Friday sales may dominate the retail landscape, but we stand by our commitment to delivering consistent value for all users.

By focusing on rewarding long-term loyalty and providing exceptional service, we build stronger, more reliable relationships with our clients. While we occasionally offer discounts for significant new releases or bespoke solutions, these instances are rare and carefully considered. This approach allows us to uphold the integrity of our platform and deliver lasting benefits to our customers, reinforcing the true value of what we offer.

Summary

Black Friday sales may dominate the retail landscape, but we stand by our commitment to delivering consistent value for all users.

By focusing on rewarding long-term loyalty and providing exceptional service, we build stronger, more reliable relationships with our clients. While we occasionally offer discounts for significant new releases or bespoke solutions, these instances are rare and carefully considered. This approach allows us to uphold the integrity of our platform and deliver lasting benefits to our customers, reinforcing the true value of what we offer.

Adam Lacey
Hi 👋 I'm the founder of Split Hero. I love chatting about conversion rate optimisation and all things tech. I'm a self-confessed geek. I love pizza, the seaside and Disney World. I live in Somerset, UK with my wife, daughter and dog Loki.
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