Insight

Discounting with discipline

How to make sure your discount program succeeds

Sudipto Banerjee

Sudipto Banerjee

Principal, Pricing & Commercial Excellence Leader, KPMG US

+1-404-907-6173

Serena Crivellaro

Serena Crivellaro

Managing Director, Strategy, KPMG US

+1 212-954-7468

Companies facing falling demand—for individual products or across portfolios—typically think about increasing discounts and promotions to reinvigorate sales. This is a natural reaction, especially in an economic downturn, like the one unfolding in 2020. But when discount programs are not carefully crafted, the intended sales lift does not occur. Worse, discounts can wind up doing more harm than good—sparking price wars and inflicting long-term damage to brands, for example.

In this paper, we outline six key considerations for sales and marketing executives and C-suite leaders when planning and executing discounts. With these considerations in mind, companies can respond to the current demand challenge, while minimizing the risk of unintended consequences. For additional reading on how to make pricing strategy decisions during turbulent times, please refer to our other paper Pricing strategy: foresight is 20/20