Great article! Your point really resonated with me - while long-term contracts might reduce churn on the surface, they risk damaging customer experience and trust relationships even more.
What are your thoughts on giving customers the choice between monthly contracts and discounted long-term contracts? Would love to hear your perspective.
Thanks! Monthly contracts are a matter of your business model. If you have high upfront costs, you might need larger upfront payments to cover your costs. That's true of enterprise software where you might need to pay sales commission and need upfront payments to cover it.
For long term commitments, you can sign them in ways that don't lock up the customer. I generally disagree with discounts for long term contracts as it hurts your cashflows in coming years. If your product is worth it then customers should be willing to pay.
Great article! Your point really resonated with me - while long-term contracts might reduce churn on the surface, they risk damaging customer experience and trust relationships even more.
What are your thoughts on giving customers the choice between monthly contracts and discounted long-term contracts? Would love to hear your perspective.
Thanks! Monthly contracts are a matter of your business model. If you have high upfront costs, you might need larger upfront payments to cover your costs. That's true of enterprise software where you might need to pay sales commission and need upfront payments to cover it.
For long term commitments, you can sign them in ways that don't lock up the customer. I generally disagree with discounts for long term contracts as it hurts your cashflows in coming years. If your product is worth it then customers should be willing to pay.