Unlike product-based B2B businesses where the focus is solely on revenue growth, B2B subscription businesses have additional success metrics built around the subscriber such as acquisition rates and churn rates.
Long-term B2B 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 of 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 B2B subscriber acquisition and churn. We specifically looked at the impact of annual and monthly plans on B2B 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