Accordingly, you only optimize your plan names so that they accomplish your desired goal when people are making a decision based on them. Your desired goal is almost always: 1) Allow people to correctly self-bucket without thinking too hard 2) Nudge them to the $$$ plans
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Annual discounts: great for cash flow, even better for churn; if you price month-to-month you should almost certainly have them. The easiest offer is "1 month free"; 10% off or 15% off are easy to communicate, too, but uptake on these offers is similar in A/B testing, so...
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Easiest two variants on annual discounts: a) Do them, but also send people an email after they've activated (achieved material use of software) saying "Hey want free money? Upgrade to annual; save
$X." b) Do them, but also send an end-of-year promotion email about them.Show this thread -
The incentive for the end-of-year promotion email is (for relatively small businesses) booking the expense before end of year saves them a bit of money on taxes and (for relatively more sophisticated businesses) "Your budget: use it or lose it. Why not use it?"
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"Patrick, are you assisting people in defeating their purchasing departments?" *cough* Never. *cough* Really: $249/$499 exist as price points specifically to do security research about the bounds for no-signature-required p-card limits while allowing $10k+ software sales.
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(In related news, enterprise purchasing departments and enterprise sales are basically in an uneasy state of codependent evolution with each other. Their iterated game is ultimately prosocial, and neither can exist without the other, but they have to be tactically adversarial.)
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End of conversation
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