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But our churn is really really low with an average subscription length several years long. So 12 months at 10 months fee is less than 12 at 12. There is work t
by jaxn 8y ago
But our churn is really really low with an average subscription length several years long. So 12 months at 10 months fee is less than 12 at 12.
There is work to help people update info, etc. And an annual check or ACH would save card fees.
But it doesn't sound like OP offered a discount, so just curious.
- scrollaway 8y agoAt the end of the day, you know your customer base better than anyone on HN, so you are the best-placed to do this research. I will say that in SaaS, unless you're extremely enterprise, a several-years-worth LTV is very rare. If you are in enterprise, you might gain customers by having annual billing at all. If you're unsure then I second the other commenters' opinions, do 12 months at full price. If you want to try a discount for some time to see if it helps conversion, that gives you a comparison point. There are advantages in annual billing beyond "it's cheaper", so you can't compare directly to monthly billing.