---
id: "framework-strategic-discounting-tactics"
type: "framework"
source_timestamps: ["§ The Art of Discounting", "¶ 2"]
tags: ["pricing-tactics", "customer-retention"]
related: ["concept-strategic-discounting", "entity-rafi-mohammed", "question-discounting-mistakes"]
steps: ["Prompt current customers to purchase more volume or higher frequency.", "Engender goodwill and loyalty with repeat customers through targeted discounts."]
speakers: ["Rafi Mohammed"]
sources: ["tail1"]
sourceVaultSlug: "hbr-seg-tail1"
originDay: 1
articleStem: "hbr-tail-104-treat-ai-like-teammate"
sourceUrl: "https://hbr.org/2026/05/should-you-treat-ai-like-a-teammate"
sourceTitle: "Should You Treat AI Like a Teammate?"
---
# Strategic Discounting Tactics

## Overview
A **partial** framework from [[entity-rafi-mohammed]] for executing strategic discounts without cannibalizing full-price sales. The overarching goal: attract new customers and grow existing baskets while limiting access for customers already willing to pay full price. This operationalizes [[concept-strategic-discounting]].

## Tactics (explicitly named in the source)
1. **Prompt current customers to purchase more** — higher volume or higher frequency.
2. **Engender goodwill and loyalty** with repeat customers through targeted discounts.

## Completeness caveat
The source states Mohammed shares **'5 ways'** to discount and **'2 common mistakes to avoid,'** but the extracted text explicitly lists only the two tactics above. The remaining three tactics and the two mistakes are unresolved — see [[question-discounting-mistakes]].

## Enrichment context
Standard pricing-theory instruments that fit this framework include **fenced discounts, coupons, time-limited offers, and volume discounts** — all designed to reach price-sensitive buyers and grow basket size while protecting high-willingness-to-pay segments from margin erosion.