When product lifecycle is at a critical stage, there is a danger of oversaturating the market. What follows is too much inventory that needs to then be discounted, which can negatively impact the longevity of the product by decreasing the lifecycle (killing the trend). You will maximize profitability when you extend the lifecycle as much as possible: your aim should be to (slightly) underserve the market, only running promotions on seasonal executions while keeping demand for evergreen versions high and discounts minimal.

In that case, I prefer to focus on the long-lasting clients/customers, to make all my promotions on. They have a high LTV and can compensate for the promotions I make to acquire them. So analyze your customer segments well. then hit the highest LTV ones!

To balance promotions for maximum profitability during a critical stage of your product's lifecycle, start by analyzing the product's current market position and customer demand. Use data to segment your audience and tailor promotions to the most profitable customer groups. Consider timing your promotions to align with key sales periods or events, ensuring they create urgency without eroding long-term value. Focus on offering promotions that drive volume while maintaining margin, such as bundling or limited-time offers. Monitor the effectiveness of each promotion and adjust strategies in real time, making sure you don't over-discount, which could harm profitability. Maintain clear communication with customers about the product's value.

1.Understand the Lifecycle: Identify the product’s stage (e.g., growth, maturity, decline) to tailor your strategy. For example, prioritize awareness during growth or clearance during decline. 2.Strategic Promotions: Offer discounts judiciously, focusing on value-added bundles to maintain margins while enhancing customer appeal. 3.Leverage Data: Use analytics to personalize offers, ensuring better engagement and conversion rates without unnecessary cost. 4.Monitor Market Trends: Stay informed about competitors and adjust your tactics to remain competitive and relevant. 5.Evaluate and Adapt: Regularly review promotion effectiveness and adjust strategies to ensure profitability and brand consistency.

Hopefully, before your product has reached this point, you have done effective customer research, market analysis, and A/B testing to understand possible pathways to optimize any promotions. Discounting your way to profitability is likely not the best course, nor is a one-size-fits-all approach to the whole distribution channel. Take the time to assess where sales are low and take council direct from customers before making any significant decisions.