# Annual prepay

URL: /workflows/customer/plays/annual-prepay · Id: `play:annual-prepay`

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

Annual prepay offers a capped discount for annual or committed-use terms once a [Customer](/business/nouns/customer) has renewed or stayed steady.

## Ratings
None.

## Budget
None.

## How it runs
The [Studio](/business/nouns/studio) rolls it out to one cohort at a time: startups with monthly [Subscriptions](/business/nouns/subscription) and [Customers](/business/nouns/customer) past three renewals.

## Processes
Runs as [Retention](/workflows/processes/retention), accountable to the [Customer Team](/agents/customer).

## Fits
| Fits | Value |
| --- | --- |
| Shelf | Compound: builds an engine that keeps growing (Grow) |
| States | [Repeatable](/business/lifecycle/states/repeatable), [Scale](/business/lifecycle/states/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](/agents/customer#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.