3 ms·
I have a suggestion to solve this issue and the "low-paying customers aren't sticky" issue mentioned in another thread: Only make the really cheap plans availa
by wtracy 7y ago
I have a suggestion to solve this issue and the "low-paying customers aren't sticky" issue mentioned in another thread:
Only make the really cheap plans available as annual subscriptions. Charging $3/month isn't very viable, but I bet $36/year is. (Assuming that the costs of providing the service itself permit that.)
- zdragnar 7y agoI think that is avoided because an annual-only plan at the bottom tier prevents you from charging monthly at higher tiers, or offering annual discounts. Attempting to do both increases the complexity of your pricing scheme, and that translates to abandoned and lost sales. At least, that was my understanding of the reasoning.
- wtracy 7y agoInteresting. I could see creating a tier chart for the different levels of service with "monthly" and "annual" price columns, where the monthly column is crossed out for certain tiers. But I'm not a marketing person.
- zdragnar 7y agoYeah, I think engineer types tend to underestimate how much our training enables us to quickly reason about, and then simply accept, complexity. Pretty much anything that is remotely considered a barrier to your sign up or checkout process costs you sales; having questions or needing to spend time deciding which position on a chart you want to purchase from is time you are giving people to decide maybe they don't actually want to sign up.