Increase retention by upselling users to an annual plan a few months after signup.
Annual plans are good for business but they’re a big commitment for someone who is new to your product. Increase annual plans by upselling monthly users a few months after they sign up.
Annual plans decrease churn. They also provide you with lump sums, which are helpful for your cashflow. So how do you get users to commit for the long-term? Give them time to fall in love with your product, then give them an incentive to upgrade. Baremetrics sends out an email three months after a customer signs up. In the email, they offer three months free (instead of their usual two months) for joining the annual plan. Then they lower the barrier even further by saying that they’ll take care of the upgrade on their end — all the user needs to do is reply. This approach resulted in an influx of $14,000 in seven days. A heck of a start. And when they started using in-app messaging to send the offers, it got even better. They increased annual plans by 30%.