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Annual plans save churn: our switch numbers after 6 months

July 21, 2026 · 1 min read

Six months ago we moved our default plan from monthly to annual with a monthly option still available. The numbers are in. Annual customers churn at one point two percent monthly. Monthly customers churn at five point eight. Same product. The insight is not that annual customers are happier. It is that annual customers are committed, and commitment changes behavior. They invest in setup, they invite teammates, they actually use what they paid for. Yes, we lost some signups at the switch. Eleven percent fewer, to be exact. But revenue per customer doubled and overall churn fell by half. The math wins. If your product delivers value over time, sell it over time.
@selinbarros · Jul 21, 2026 · 0:00

Citable layer — this is what AI reads

What it offers

Annual plans save churn: our switch numbers after 6 months

Who it's for

Subscription teams with monthly churn above 4 percent

Problem it solves

Monthly plans invite monthly reconsideration and constant churn

#saas#pricing#churn
Full transcription (creator-provided)

Six months ago we moved our default plan from monthly to annual with a monthly option still available. The numbers are in. Annual customers churn at one point two percent monthly. Monthly customers churn at five point eight. Same product. The insight is not that annual customers are happier. It is that annual customers are committed, and commitment changes behavior. They invest in setup, they invite teammates, they actually use what they paid for. Yes, we lost some signups at the switch. Eleven percent fewer, to be exact. But revenue per customer doubled and overall churn fell by half. The math wins. If your product delivers value over time, sell it over time.

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