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Subscription Economy Benchmark: B2C Annual vs Monthly Plans

Impact on B2C Subscriber Acquisition and Churn

Research by the Subscribed Institute

Unlike product-based B2C businesses where the focus is solely on the number of units sold and profit margins, B2C subscription businesses have additional success metrics built around the subscriber such as acquisition rates and churn rates.

Long-term B2C subscription success often depends on a steady increase in acquisition rates, a decline in churn rates, and a steady increase in customer lifetime value (CLV) through renewals, upsells, and cross-sells.

Pricing and packaging is a key subscription growth lever. And pricing agility that allows businesses to offer customers choice and flexibility of plans is a key contributor to success.

While there are a lot of variables that determine a customer’s preferred subscription plan such as perceived value, competitors’ rates, etc., there are some overarching trends that businesses should consider while designing their offers.

Research from the Subscribed Institute has found that the plan term period can significantly impact B2C subscriber acquisition and churn. We specifically looked at the impact of annual and monthly plans on B2C subscriber acquisition and churn.

Get this benchmark report to understand:

  • How annual and monthly plans affect subscriber acquisition and churn rates
  • The benefit of offering multiple subscription plan terms
  • The average pricing difference between annual and monthly plans and its impact on CLV
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