with the skill
# Getting more people to choose annual
Your monthly users cancel around month 3, so the real prize isn't just "more annual signups." It's getting users past the point where the habit sticks, and annual helps with that. Here is how I'd present it.
## 1. Reframe the price (anchoring, mental accounting, rule of 100)
- **Show the monthly equivalent, but anchor on the real monthly price.** Display annual as ~~$25~~ **$20/mo**, billed $240/year. The crossed-out $25 is the anchor.
- **Use an absolute savings figure.** For prices over $100, "Save $60" or "2 months free" feels bigger than "20% off."
- **Use a daily frame as a secondary line.** "$0.66/day" fits a habit app well, since your users already think in days.
## 2. Make annual the default (default effect, Hick's Law)
- Pre-select annual on the pricing toggle, and show it first or on the left.
- Label it "Best value" or "Most popular" (only if true) and visually emphasize it with a larger card, color, or badge.
- Keep monthly visible but lower-contrast. Don't hide it, since hiding it erodes trust and raises refunds.
## 3. Use a decoy or middle option (price relativity)
Test adding a **3-month plan** (e.g., $69, about $23/mo). It barely beats monthly, so it makes annual's $20/mo look like the obvious deal. Be aware that this adds a choice, so A/B test it against the two-plan layout.
Show the rest (37 more lines)
## 4. Reduce regret (regret aversion, status-quo bias)
The main barrier to annual is "what if I stop using it?" Address it directly:
- A **30-day money-back guarantee** on annual, stated right next to the button.
- Copy like "Not feeling it? Full refund, no questions."
- A trial that defaults to annual, with a clear reminder email before billing.
## 5. Tie annual to the outcome (jobs to be done, loss aversion)
Monthly users quit before the habit forms. Make that part of the pitch:
- "Habits take about 2+ months to stick. Monthly plans make it easy to quit right before it clicks."
- "Commit to the year, not just the month."
- Use loss framing carefully: "Monthly costs you $60 more per year."
## 6. Don't skip the root cause (first principles, second-order thinking)
If monthly users churn at month 3, **pricing presentation may be a local optimum.** Check:
- **Activation:** What do retained users do in week 1 that churners don't?
- **Price/value fit:** $25/month is high for a habit tracker, so many users may feel they're overpaying. A cheaper entry point may suit them better.
- **Annual quality:** Annual converts someone who would have churned into a year of revenue, but if they stop using the app, you get refunds, chargebacks, and non-renewals. Pair it with onboarding, streak and progress nudges, and a mid-year check-in.
## 7. What to test and measure
| Test | Hypothesis |
|---|---|
| Annual pre-selected vs. toggle defaulting to monthly | Default increases annual share |
| "$20/mo" vs. "Save $60" vs. "2 months free" | Absolute savings framing wins |
| With vs. without 3-month decoy | Decoy lifts annual share |
| Guarantee badge vs. none | Reduced regret increases annual |
Track **12-month revenue per signup**, not just annual conversion. Also watch refund rate and renewal rate, since a pricing page that boosts annual signups but causes refunds hasn't helped.
## Ethical guardrails
Don't use fake scarcity or countdown timers, don't hide the monthly option, and make cancellation straightforward. Dark patterns may lift conversion short-term but increase refunds and damage trust.
If you share your current pricing page, trial setup, and any retention data, I can suggest specific copy and layout.