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Sameer Kumar commented on

Seeking advice

Greetings! Hope you lovely people are doing fine during these troubled times.


I have a question to those who work with SaaS subscription-based products: what's your best strategy for asking your customers to switch from monthly to annual-based subscription model?


Sure, there are obvious advantages like cost savings, but maybe you have any ideas on what else could be there?


Thank you in advance!

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For us, a major reason that people buy annually rather than quarterly (no monthly offer) is how we structure our customer success model.  We offer a more robust success team, leveraging some of our most tenured reps that are focused specifically on renewing annual clients.  Cost savings helps, but showing that you are putting skin in the game to ma... See more
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Great point, Tom

Thanks for sharing!
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Possibly easier on their accounting team, discounts, and they don't have to worry about payments each month.  Quarterly or every 6 months could be useful too if not a whole year.  Ease them into it
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Agreed with Tom and Tyson. If you don't already offer this today, you could offer license transfer within the organization to further derisk the upfront attainment of an annual license
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If you solve a real business problem that you can help in the longterm they should be more than willing to sign an annual agreement. Harp on the partnership approach, "if you grow, we grow" -- my $0.02. 
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In conjunction with others. I am not sure how well this message would be received at the present time. unless you have some compelling reason. 

For every reason you want people to pay more now, they have the exact same reason and logic for not doing this. 

If there is true added value then it can work. Otherwise, it could be seen as squirrelly and op...
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As a customer i always have the fear of missing out on some better feature or a totally new product out there with a competitor which is much better. If i pay you in advance, i will tied with you by force. If this problem can be addressed, then the customer might agree to pay, but has to come with added benefits and features which are exclusive for... See more
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Try making annual subscriptions the default rather than quoting a monthly subscription with sweetners for an annual “upgrade”. Many people will not question the default if they want to buy your service. If you get pushback then start with the benefits mentioned by Tyson above. If those don’t resonate you can fall back to a pricing premium for a sho... See more
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The decision for long term contract is because of the following: 

1. Cost  - You can show them the $$$'s they'll save if they sign up for a year. If they don't want to commit for a year, then go to 2. 

2. Growth - Ask the prospect or customer how do they foresee the usage of your solution (add value proposition). Is it for a short term project, or ar...
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