The week is over, let’s plan the next one and enjoy the weekend… 😎

Welcome to the networking desk! Where I share networking events going on in Atlanta (and metro area) tips on how to get the most out of them and more.

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Alright, let’s do this.

“Lean forward moment” of the week - 💳 Retain your recurring revenue

A few weeks ago, I shared how to extend a customer’s contract value by having an associated cost at the start of the service which makes monthly payments feel smaller in comparison, you can read it here if you missed that.

I want to do build on that a bit, as I had a conversation with my coach and the topic came up. Here’s the gist of it:

Monthly, quarterly, and annual billing have different effects on customer churn: 10.7% for monthly, 5% for quarterly, and 2% for annual.

LTV (Lifetime value) of a customer is drastically increased by the billing frequency. This happens because of how humans perceive value, we only remember what a service provider did last for us, so slower months will make it more likely for us to leave as the discrepancy of value for the service is tracked between now and the last time we paid.

This makes it so that an annual payment seems justified because we group everything that was done for us in that year vs the last month.

By comparing different billing frequencies, annual billing can yield customers worth $5,000 compared to $950 for monthly customers.

The biggest takeaway for me was also separating one-time value from consumable or recurring value to avoid customer dissatisfaction and improve customer retention.

🗓️ Now, the events…

🖥️ Convert More Website Users Into Clients (Sponsor)

Thank you for reading! Quick thing before I go:

1. If you are new or would like to read older posts, check out this page. There is a backlog of previous weeks of “The Networking Desk”

2. Know someone who would benefit from this newsletter? Be sure to share it with them! 📩 (just copy the link or forward this email) I will keep putting out great newsletters for them and for you. That’s a promise.

See you next week.

- Andres Inciarte