SaaS founders and product marketers are well aware of the massive benefits a lifetime access deal can bring to a SaaS startup.
The rewards of a lifetime deal often extend beyond the obvious benefits.
Since they are a powerful tool to see quick growth in the short term, they may sound too good to be true.
Does running a lifetime deal come with hidden costs for SaaS brands?
While they are great for short-term rapid growth, you must also consider the long-term impact of running lifetime deals.
Does Running a Lifetime Deal Affect Brand Value?
Well, the short answer is No.
And the long answer is it might if handled carelessly.
Let’s be clear that the act of running a lifetime deal alone is not going to lower the brand value of your SaaS.
In fact, if you know what you’re doing and plan it well in advance, you can certainly use lifetime deals as a tool to increase your brand value multifold. It is also one of the many reasons to work with lifetime deal experts rather than listing your product on a daily deals site right away.
Strategically marketing your lifetime deal can lead to positive brand association. Your customers will associate the company with value and generosity, leading to increased loyalty and trust.
So it is all about planning ahead and building a positive narrative while staying true to your customers.
However, if done poorly or too often, a lifetime deal can have a negative effect on a SaaS.
Lifetime Deal as a Tool to Build SaaS Brand Value
A lifetime deal is an excellent tool to build brand value because it shows customers that they can trust your company and that you are willing to go the extra mile to earn their loyalty.
Lifetime deals demonstrate value and generosity, helping to create a positive association between your brand and customers.
In addition, providing a lifetime deal allows customers to commit to using your product for the long term, which further strengthens customer loyalty and increases trust in the brand. As a result, offering lifetime deals can increase customer retention rate, which leads to increased revenue over time.
Overall, utilizing lifetime deals as part of your marketing strategy is an effective way to build brand value and establish strong relationships with your customers.
When Does a Lifetime Deal Boosts Your SaaS Brand Value?
Running a lifetime deal can become a brand value booster when you do it for the right reasons.
Having a clear purpose and a goal helps you set boundaries for you to work within on running a lifetime deal campaign.
It helps you focus on the right things that act as brand value boosters.
For example, a lifetime deal can be a tool to boost brand value when you target only a small set of customers. And it, by nature, cannot negatively affect your brand value in any way.
The key is to make sure you are targeting the right audience, pricing your product correctly, and providing an incredible offer.
When Does Lifetime Deal Affect Brand Value?
Running a lifetime deal can indeed affect your brand value in the long term if you are too focused on its short-term benefits.
For example, quick cash revenue is one of the byproducts of running a lifetime deal campaign.
Running a lifetime deal for generating short-term revenue pushed SaaS founders to sell LTD licenses to a huge volume of customers. Selling LTD licenses anywhere in the range of 3000-5000 or more should be considered high volume.
One of the reasons is that selling LTD licenses in such a high volume will saturate your target market. And it will quickly lower the demand for your product in the market.
In addition, you should also worry about license resellers who, are real, will bump up the price, and sell them in the black market. It further increases the adverse effects of your poor strategy.
Effects of a Poorly Planned Lifetime Deal on Brand Value
When you saturate your market with too many LTD licenses, you will be forced to take reselling mitigation measures.
And any LTD license reselling mitigation measure will also affect your genuine LTD customers. You may end up making it difficult for your real customers to regularly use your tool.
Your regular honest customers, who are also potential brand advocates, might start looking for alternatives. It totally discards any potential long-term benefit from your lifetime deal campaign.
Moreover, there will also be your organic customers who are your loyal customers since the beginning. Selling too many licenses on LTD could also make them feel uncared for, lowering your brand reputation.
It could even increase your churn rate over a period.
The Role of Multiple Lifetime Deals in SaaS Brand Value
Running multiple lifetime deals may also affect the brand value of your Saas in the long term.
You can definitely run multiple lifetime deal campaigns, if necessary. However, you must plan it well in advance and take proper measures to ensure that it does not leave a poor impression of your brand.
It is essential to make sure that each lifetime deal campaign serves its purpose and meets the expectations of your target customers.
Lifetime deals can be an effective way to build brand value and establish strong relationships with customers.
However, it is important to carefully plan any lifetime deal campaigns and ensure that they do not negatively affect your brand value in the long term. Running multiple lifetime deals should also be planned in advance to ensure that they meet customer expectations and do not result in decreased brand reputation.