How to sell more annual plans
Annual SaaS plans drive 10-20 percentage points higher net revenue retention (NRR) compared to monthly plans across all customer segments. The article presents 14 tactical strategies from growth leaders at Canva, Grammarly, Pleo, and others, organized into four levers: positioning, pricing, lifecycle triggers, and psychological/perceived value incentives.
Metrics in this report
70-80percent
Three-month opt-out clauses in experimental AI product use cases
43percent
median
Monthly plans, customers with <$25 AMRR
65percent
median
Annual plans, customers with <$25 AMRR
62percent
median
Monthly plans, customers with $25-$100 AMRR
75percent
median
Annual plans, customers with $25-$100 AMRR
75percent
median
Monthly plans, customers with $100-$250 AMRR
82percent
median
Annual plans, customers with $100-$250 AMRR
76percent
median
Monthly plans, customers with $250-$500 AMRR
88percent
median
Annual plans, customers with $250-$500 AMRR
79percent
median
Monthly plans, customers with $500-$1,000 AMRR
88percent
median
Annual plans, customers with $500-$1,000 AMRR
74percent
median
Monthly plans, customers with >$1,000 AMRR
91percent
median
Annual plans, customers with >$1,000 AMRR