Annual subscription plans allow the company to forecast its revenue more accurately since customers commit for a longer time.
In fact, many companies offer discounts or special benefits to ukraine mobile database who choose to pay annually, which can help with customer loyalty.
How does the monthly subscription plan work?
woman with question markMonthly plans offer recurring payment options where the customer is automatically charged each month for the service .
Accepted payment methods may include bank transfer, boleto, Pix and even credit card.
The monthly contract may specify that the subscription automatically renews each month unless the customer cancels, or require a manual renewal.
Therefore, customers can cancel their subscription at any time without penalty. This is good for customers who don’t want any surprises in the future.
Advantages of the monthly subscription model
The monthly plan allows customers to pay for a service in installments, which can be more affordable than paying a lump sum for an annual plan.
Additionally, they can use the credit card without having a high total amount, which is beneficial for those who do not have a large limit.
How to decide between annual and monthly subscription plans?
plansAnnual subscription plans can encourage customer loyalty, as customers are committed to the service for longer and are less likely to cancel their subscription.
According to research from ProfitWell Report, the churn rate of companies that work with annual payments is 75% lower than the churn rate of those with fewer annual contracts.
However, monthly plans give customers the time they need to realize the value of your service, which is quite interesting when the customer does not yet want to commit because they do not know its value.
Therefore, to create a subscription plan, it is important to analyze your company's sector, your target audience, your goals and services .
To help you, you can count on solutions from Digital Manager Guru , the best subscription checkout platform .
It allows you to manage subscriptions through an intuitive and easy-to-use dashboard, and it also automates your business, giving you more time to focus on growing your subscriber base.