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
| Fits | Value |
|---|---|
| Shelf | Compound: builds an engine that keeps growing (Grow) |
| States | Repeatable, Scale |
Loop
| Step | Value |
|---|---|
| Hypothesis | A capped annual discount offered after a renewal keeps more Customers to month three without lowering contribution margin. |
| Measure | Month-3 retention over 90d, at least 50 observations |
| Learn | The 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.