Skip to content

Annual prepay

Annual prepay offers a capped discount for annual or committed-use terms once a Customer has renewed or stayed steady.

Ratings

None.

Budget

None.

How it runs

The Studio rolls it out to one cohort at a time: startups with monthly Subscriptions and Customers past three renewals.

Processes

Runs as Retention, accountable to the Customer Team.

Fits

FitsValue
ShelfCompound: builds an engine that keeps growing (Grow)
StatesRepeatable, Scale

Loop

StepValue
HypothesisA capped annual discount offered after a renewal keeps more Customers to month three without lowering contribution margin.
MeasureMonth-3 retention over 90d, at least 50 observations
LearnThe learn step reads the Readout, records Evidence and a Decision, and drafts the next Variant.

Example

A lesson-booking app's teachers pay $24 a month. After a teacher's third renewal, Annual prepay offers $240 for the year, a capped 17% discount. A third accept, and their churn drops to near zero.