Just curious to know if anyone has seen any of the outcomes of this method.
Found that the extremity of pricing between Yearly and Monthly subscriptions for SAAS offerings has grown in the last 6 months. Some services will do something like $18/mo @ yearly renewal or $32/mo @ monthly renewal.
Maybe more of a consumer habits discussion. I’ve had a gut feeling lately telling me that I’m not getting a discount for billing yearly, I’m getting a tax for billing monthly as a consumer.
I understand there isn’t a great real difference between the two, but curious to know if there’s any research on what the line is on pricing when it comes to perception from consumers.
I think it depends on the type of customer. Monthly subscriptions offer more flexibility and are great for customers who want to test out the product for a few months. Yearly subscriptions are less expensive but the customer has to pay upfront so they are more geared towards customers who have already tried the product and want to commit.