OnboardingEmerging Pattern

Add yearly plan options to reduce churn through increased commitment

Yearly subscription plans create longer-term commitment that encourages customers to use the service more deeply and get more value. When customers pay for a year upfront, they're incentivized to integrate the product into their workflow rather than churning after light usage. This increases retention and lifetime value.

When to use

When experiencing high monthly churn from customers who don't fully commit to using your product

Don't do this

Only offering monthly plans that make it psychologically easy for users to quit before seeing full value

2 Founders Who Did This

1
AI Careaby Pauline

Had high churn on monthly plans, added yearly subscription option: 'now they are engaged for a year so they will use the service better'

Result:Drastically reduced churn by creating commitment that drove deeper usage
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2
IACreaby Pauline Clavelloux

Added annual plan options with 10% discount alongside monthly subscriptions to increase customer commitment

Result:Annual plans helped reduce churn from 41% to 16% by creating longer commitment periods
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