Sarah works from home and her internet connectivity is dropping sporadically making it
difficult to get her work done. She has increasingly become dissatisfied with her internet
provider and finally has reached her breaking point. Sarah calls her internet provider to
complain. In an attempt to remedy the situation, the CSR offers Sarah 20% off her monthly
charges for the next 12 months. Sarah accepts. What type of discount is described in this
scenario?
A. Order-Based
B. Account-Based
C. Contract-Based
B. Account-Based
Explanation:
This scenario describes a loyalty or retention strategy where the CSR offers Sarah a recurring discount tied to her account for future billing cycles. That aligns with the definition of an Account-Based Discount in Salesforce Industries CPQ.
✅ Account-Based Discount
Applied directly to the customer’s account record
Automatically affects future orders or quotes associated with that account
Typically used for retention, negotiated pricing, or VIP customer programs
Valid for a defined period (e.g., 12 months in Sarah’s case)
📌 Example: Sarah’s account now carries a 20% discount on monthly charges for the next year. Any new quote or order linked to her account will inherit this discount automatically.
❌ Why the other options are incorrect:
A. Order-Based: This applies a one-time discount to a specific order or quote. Sarah’s discount is ongoing.
C. Contract-Based: This is tied to a formal contract or frame agreement. Sarah’s discount was offered informally by the CSR and not through a negotiated contract.