Tip: Instead of giving a percentage discount on long-term plans, offer a free month

Long-term subscription plans help with cashflow and boost revenue. It's common practice to incentivize these with a percentage discount, but you can get more takers by offering dollars or free months.

When LOLA offered a percentage discount for a 6-month plan, people selected it roughly 8.5% of the time. That's not bad. But when they offered dollar discounts, that number increased to 19.5%. And when they offered it in terms of free months, it increased to 22.94%. The value of ten dollars is easy to understand, as is the value of getting a month for free. But a percentage doesn't feel as solid, and it requires customers to do the math themselves. That little bit of friction had a big impact for LOLA. It should be noted that LOLA creates physical products, but this trend should translate to other types of subscriptions as well.

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  1. 3

    Good advice and the videos of deep dives into subscriptions at ProfitWell are great.

  2. 2

    Exactly. I do that at https://pagemtr.com. Clients are always happy to get gifts like that.

  3. 2

    This comment was deleted 5 days ago.

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