Would you offer a discount for monthly autopay?
A few years ago, we introduced an AutoPay incentive for our recurring clients by offering 5% off for enrolling (think subscription and a huge influx of cash flow on the first of the month). It worked well and helped increase participation, but as we’ve grown, we realized 5% was a much larger discount than we probably needed.
Today, new clients receive 2.5% off for enrolling in AutoPay, while some long-term clients are still grandfathered in at the original 5% discount.
I’m debating whether to leave those clients at 5% as a loyalty perk or reduce everyone to the current 2.5% program for consistency.
For those of you who offer AutoPay incentives:
- Do you offer a discount? If so, how much?
- Have you ever reduced or eliminated an existing discount for legacy customers?
- Would you grandfather existing clients or standardize everyone under the same program?
I’m interested in hearing both the financial and customer-retention side of the decision.
Interesting! I’m looking at doing subscriptions that will allow them to have discounts and advantages over not (think VIP service and turnaround, waving trip charges, etc). However, I hadn’t thought about the discounts for autopay. Maybe a monetary credit on their first bill for signing up for autopay? AT&T gave me $20 -something like that - for autopay, but not ongoing. Most people once signed up for autopay keep it going. So why continue a discount? What’s the reason you have done it? Do you feel you’ll loose people if you take it away?
Maybe let your clients know you’re doing away with the program, give everyone on the 2.5% charge a $25-$50 credit the next billing and $50-$100 for your longer loyal customers - Something to acknowledge their continued support. Then take that money you’re gaining back and use some of it for more client appreciation gifts, events and acknowledgments.
