Hello!
Netflix and most subscriptions charge on a monthly basis. But is a monthly subscription the best option for your subscription?
Let's explore the options!
TL;DR:
We have tested both options with some of our customers and weekly always works better than monthly subscriptions.
We recommend charging on a weekly basis because it makes your subscription look more affordable and it allows your customers to try it with less of a commitment.
The less barriers customers have, the more likely they'll subscribe and start paying you on a recurring basis.
Weekly:
Pros of weekly:
- The price looks lower as it's a monthly charge divided in 4.
- Less commitment & more flexible: customers can try it out without worrying if they are going to use it the whole month.
- Weekly cashflow from subscribers.
Cons of weekly:
- customers see a bank charge every week, so they are reminded about their subscription more often.
- customers can cancel it for periods when they are not in town.
Monthly:
Pros of monthly:
- Customers only pay once a month, so it feels less "annoying" to pay.
- Customers are already used to monthly subscriptions.
Cons of monthly:
- The upfront subscription price might be too high for your customers. For example: a 5 Lattes per week subscription would cost $100/month instead of $25 per week, which sounds more affordable
- High upfront cost means it will be harder to get customers to subscribe, specially if they don't know how it all works.
Want both monthly and weekly? No problem!
We have one option that allows you to offer different price points for a subscription. That way, the more a customer pays you, the bigger their discount. See the image below to see how it works!
