Optimizing for annual plans can increase cash flow and decrease churn. To get more customers signing up for annual plans, ask them to choose which discount they want.
With a minor reframe of his checkout flow, @manuel_frigerio of ReferralHero increased the percentage of customers purchasing long-term plans from 4.8% to 19%. He had already been offering discounts for annual and bi-annual plans. So he maintained these, but started asking new users to "Choose your own discount" on the checkout page, instead of simply giving them each plan’s price. Each option stated the discount percentage, price per month, and how often they'd be charged. Unsurprisingly, people wanted the highest discount possible, so Manuel got more long-term plans. And that means more cash flow and less churn for his business.
We share a tiny, bite-sized tip for growing your business a few times a week. Click here to see more and get Growth Bites in your inbox 👌