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With almost three-quarters of the USA saying there are “too many” subscription services, people are now hesitant to sign up for them. Due to this, you need to show potential customers what you offer matches their expectations of value. Ways you can do this include finding the perfect subscription length, price, and service USP.
So, how do you ensure these align with your customers’ demands?
Below, we delve into some of the different possible subscription lengths you can aim for. By the end of the article, you should have a good idea of what each is best for and whether it fits your needs.
Pros of Monthly Subscriptions
From the point of view of customers, a monthly subscription term length offers them the ability to opt in and out when they need to. If you want to appeal to those with lower incomes by accepting not everyone can pay your subscription rates, this can even affect user trust. For you, it also acts as a regular income stream you can often rely on.
Cons of Monthly Subscriptions
This subscription duration means customers only need to commit for short periods. Subscribers may also cancel with little notice, affecting your projections.
This often contributes to a high churn rate. This often means you need to be proactive about new acquisitions, or that you need to encourage old customers to come back.
Pros of Sixty-Day Subscriptions
These offer a mix of higher churn and regular revenue. People may still choose to cancel a later subscription, but it will not impact your income projections as much as a monthly renewal would.
Cons of Sixty-Day Subscriptions
As you still have a good amount of churn, you will need to continue actively appealing to customers over their subscription period. This kind of engagement can be very difficult if you want to have repeat payments.
Pros of Longer Subscriptions
This subscription business model offers you a lot more stability. You can make use of larger bursts of income you would otherwise get over several months without the risk of dropped subscriptions.
Cons of Longer Subscriptions
A lack of monthly recurring revenue can sometimes cause long periods of income. If you incur an issue with finances, you might end up in trouble with longer subscriptions.
In Summary
Choosing which subscription length works for you needs careful consideration. Think about your business needs and how each revenue period might affect it. You might even want to offer all of the above, to allow users to choose which works best for them, and for more loyal customers to choose lengthier options.
Manage Subscription Length and More With Ease
No matter your subscription business, you should now see how subscription length can change a customer’s perception of you. For this reason, it is important to communicate this information as clearly as possible during the checkout process. This is not always easy, though, so partnering with a high-quality e-commerce platform can make a world of difference.
Checkout Champ integrates with many of the leading platforms, allowing you to customize your customers’ UX to suit your needs. So, book a demo by calling us today to find out more about what we can do for you.
