Tip: Get more customers to purchase annual plans by reframing how you offer the discount
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.
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Nod to @Kacper of Scrapbook 💪
love this one!
love the concept, but am I missing anything? I'm not seeing what you describe on https://referralhero.com/pricing
Yep, he offers the discount after signup on the checkout page. It's not on the pricing page. You can see a screenshot of exactly what he offers if you take a look at the original article.
Got it, thanks!