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.

  • YourAverageExecutive@alien.topBEnglish
    1·
    1 year ago

    All based on customer life time value, customer acquisition cost, and bunch of other standard SaaS kpis. Basically, customers are worth more as an annual subscription and tend to be much more likely to renew.