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Limited duration rate plan subscriptions

QUESTION:

 

We want to be able to apply discounts to a subscription for a limited period of time. For example, we want to do a discount that only applies for 2 months. Or we want to change a rate plan for a promotion but after a year the subscription goes back to the original rate. How would we accomplish that?






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Re: Limited duration rate plan subscriptions

RESPONSE:

 

You can definitely customize your discount rate plan charges for limited periods. To do this, you need to adjust the End Dateof the discount charge when adding it to the subscription.

 

Using the 2 examples from the original question:

 

1) Discount that only applies for 2 months

 

When adding your discount charge to a subscription:

  • END DATE: set to "Fixed Period after the Charge is triggered" for 2 Billing Periods
  • BILLING PERIOD: set to MONTH
  • LEVEL: set to Subscription (this will apply discount to entire subscription)

This will trigger the discount for only 2 monthly billing periods then stop thereafter.

 

 

2) Change a rate plan for a promotion but after a year the subscription goes back to the original rate

 

There are 2 ways to accomplish this. The first is similar to the above, using a discount charge:

  • END DATE: set to "Fixed Period after the Charge is triggered" for 1 Billing Periods
  • BILLING PERIOD: set to ANNUAL

This method will apply a discount to only the first year of an annual charge, then stop thereafter.

 

 

The second method uses the "Price Change to Apply" (Automated Price Change) setting:

 

In this example, I have a Product Rate Plan Charge that is a $1000 annual fee. But for the customer, I would like to only charge them a promotional $600 for the first year.

 

You can set up a 12-month term subscription with the rate plan charge priced at the promotional $600 annual and for the "Price Change to Apply" setting you set to "Use Latest Product Catalog Pricing". The behavior for this setting will change the price back to your Product Catalog's product rate plan charge DEFAULT price UPON subscription renewal. Therefore, customer is charged $600 the first year, then upon subscription renewal, the price is automatically updated back to the catalog list price of $1000.

 

 

REFERENCE ARTICLE:  How to handle discounts in Zuora.






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