Tip: Instead of giving a percentage discount on long-term plans, offer a free month

Long-term subscription plans help with cashflow and boost revenue. It's common practice to incentivize these with a percentage discount, but you can get more takers by offering dollars or free months.

When LOLA offered a percentage discount for a 6-month plan, people selected it roughly 8.5% of the time. That's not bad. But when they offered dollar discounts, that number increased to 19.5%. And when they offered it in terms of free months, it increased to 22.94%. The value of ten dollars is easy to understand, as is the value of getting a month for free. But a percentage doesn't feel as solid, and it requires customers to do the math themselves. That little bit of friction had a big impact for LOLA. It should be noted that LOLA creates physical products, but this trend should translate to other types of subscriptions as well.

More 30-second growth tips?

We share a tiny, bite-sized tip for growing your business a few times a week. Click here to see more and get Growth Bites in your inbox 👌