GTM Sauce

LinkedIn · professional social network

Offer a two-person plan at 20% off, plus a big annual-plan discount

Both offers retain better; no retention figures given

Workedpricingretention

What they did

Annual Premium plans get a significant discount. In test: dual plans covering you plus a family member, friend, partner, spouse or colleague, with 20% off for taking two plans. Otherwise Premium is not discounted (no coupon codes).

What happened

Guest says these offers retain better, through social effects or longer value exposure; some customers have stayed over a decade.
Stage
scale

In their words

Value-Driven Growth: LinkedIn's Billion-Dollar Subscription Strategy — Ora Levit, LinkedIn

Play the episode

Ora Levit… And so we try to provide more value props to address that. We say that articulating the value also helps if we do a better job at telling you what benefits we have and how to use them. Those type of messaging changes alone would improve retention because our members are better informed and how to use the product. And so that has been a driver. And then we provide economic benefits to individuals who are looking to stay with us for the long term.

Ora LevitSo for example, if you want to take an annual plan with Premium, you will get a significant discount towards that and that's also a great economic opportunity for you. We've been testing in dual plans that allow you to take a plan for you and a family, friend, partner, spouse, colleague, et cetera and then we also provide 20% discount for you taking two plans. And so we see that those type of offers have also better retention, whether because there's a social effect of you and a friend interacting with it or because you provide greater value for a lower price since you stayed with us for a year, et cetera, and you're more likely to see that value and stay for a second and third and four year. And we have customers who have been with us for over decade.

David BarnardOne concept you mentioned to me was boomerang and I'd never heard that term before, but I'd like to use this podcast to help socialize that term-

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Tags: annual-plan, dual-plan, discount, social-plan