Ask HN: What percent of my subscribers should be monthly vs. annual?
Like many HNers, I run a software business with a recurring subscription. The vast majority of my B2C customers are on my monthly plan, and only a small percent are on my annual plan, which is discounted.
What should I be thinking about when considering the annual discount? Is there a 'right' number that I should be targeting?
So far, I've considered that the fees I pay are lower for annual customers, and the risk of mid-year churn is somewhat lower. Are there other relevant considerations?
I understand why new customers would sign up for a monthly plan, to try it out (there's also a 2-week free trial, before having to pay). Should I be contacting customers who are still with me after a couple months and encouraging them to switch to annual subscriptions? Or should I not really care?
What should I be thinking about when considering the annual discount? Is there a 'right' number that I should be targeting?
So far, I've considered that the fees I pay are lower for annual customers, and the risk of mid-year churn is somewhat lower. Are there other relevant considerations?
I understand why new customers would sign up for a monthly plan, to try it out (there's also a 2-week free trial, before having to pay). Should I be contacting customers who are still with me after a couple months and encouraging them to switch to annual subscriptions? Or should I not really care?