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If you have a monthly subscription plan where a user receives e.g. 1000 credits to spend on buying images each month, it does not cost a great deal to have it rollover (so they have 2000 next month) rather than expire and reset to 1000. Would letting it rollover impact growth and customer retention in a positive way?

  • DD

    Dutch Driver

    about 5 years ago #

    I am going to make an analogy for this answer. Look to paid time off (PTO) policies. I'll use NASA's leave PTO policy because although a Civil Servant can accrue NN numbers of hours for annual leave, there are few rollovers because the Gov't wants the employees to use the leave and uses a use it or lose policy. So at end of year, the use-or-lose leave policy encourages thousands of Civil Servants to take NN number of hours leave, and take their accrued PTO leave balance to 256 hours, I think. They will face the same motivation mechanic 11 months later as they continue to accrue PTO hours.

    You might use what the airlines use on mileage points. My points expire when I don't book a flight within a certain time frame to keep them active. So, I have booked a flight to keep them active instead of letting them expire.

    • PK

      pardeep kullar

      almost 5 years ago #

      Well that's interesting, I think the airline points analogy fits well and reflects the pattern of how some people use it.

      I would hope that paying money each month would motivate them to make use of it at some point. I guess underlying it all is the problem that someone 'does not need the product month to month' and maybe that is a flaw in the product. However, there are people who do use it monthly. More importantly, we have monthly costs.

      Maybe it's product and customer specific. We'll see what happens and I'll report back if things go weird :)

  • PK

    pardeep kullar

    over 4 years ago #

    Summary: Rollovers turned out to be a bad idea mainly because it does not value the time of the people who run the service.

    The idea was that it was more honest to let people's credits roll over to the next month BUT the biggest problem is that a person may accumulate credits and then want to cancel the subscription so they can use the credits at their leisure - they forget that it's a monthly subscription. Maybe we did not explain it properly but they accumulate, then they cancel as if the service itself is a commodity they can pick up and put down whenever they want - however, our monthly support costs are not like that.

    • PK

      pardeep kullar

      over 4 years ago #

      Ignore that, we're keeping rollovers for now. Maybe the solution is to price in the value of our maintenance time.

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