--- title: Converting Monthly Paid Users to Annual subscribers description: 4 step process to identify and upgrade the monthly users to paid subscribers image: https://optiblack.com/hubfs/How%20Assetplus%20Enabled%203000+%20partners%20to%20drive%20Financial%20products%20sales%20(33).png --- OPTIBLACK - [Services](https://optiblack.com/services) - [Customers](https://optiblack.com/customers) [Book a strategy call](https://optiblack.com/book-a-call) - [Services](https://optiblack.com/services) - [Customers](https://optiblack.com/customers) [Book a strategy call](https://optiblack.com/book-a-call) [Information](https://optiblack.com/insights/tag/information) Oct 19, 2024, 3:42:17 PM · 5 min read # Converting Monthly Paid Users to Annual subscribers ![Vishal Rewari](https://app.hubspot.com/settings/avatar/978df0061a7518a88e144c0b237262ab) Vishal Rewari Optiblack ![converting monthly users to annual subscribers](https://optiblack.com/hubfs/How%20Assetplus%20Enabled%203000+%20partners%20to%20drive%20Financial%20products%20sales%20(33).png) There are **30,800 SaaS companies** in the world, **8.93 million mobile apps** targeting **376 million business  in the world**   but all these apps want one thing - Recurring users They want users to come back again and again and pay them   More than monthly payments, there is a demand for converting the monthly recurring users to annual users and this is why   - **Immediate Cash Flow:** Annual billing provides a significant upfront cash inflow, which can stabilise revenue streams and improve financial forecasting - **Reduced Transaction Costs:** Fewer transactions mean lower processing fees and less administrative work related to billing - **Commitment Reduces Churn:** Longer commitments may reduce churn rates as customers are less likely to switch providers mid-term     Here is a step by step data-driven approach to convert more monthly users to annual users This is the game plan to start converting monthly users to annual     | Identify the triggers | Understanding what can be good indicators that will tell that customer is ripe for pitching annual plan | | --- | --- | | Identify the accounts | Filtering the accounts that have good chances of conversion | | Prepare | Getting ready before reaching out | | Approach Customers | Pitching the solution |   1. Identify the triggers 1. Time when Churn started flattening out 2. What is the product usage benchmark for annual and monthly users 2. Identify the accounts for target 3. Prepare 1. Ease of Upgrade Process 2. Pricing Strategy 3. Communication 1. Channels 2. Content 4. Concerns 1. Tickets resolution 2. NPS Scores 5. Additional Features 4. Approaching clients 1. Use case approach 2. Automated email approach 3. Highlight Savings 4. Features Highlighting 5. Social Proof 6. Incentivize 7. Feedback 5. Automation 1. Avenues of automation 6. Track 1. Track the conversion 2. Track the objections     ### **Identify the triggers**   The first step is to identify the triggers that will help us understand when to approach for converting to annual contracts.       - When did the churn started flattening out? - Product Usage Metrics - What is the frequency of login to the product? - What is the frequency of consumption of the product? - Account Usage - How many users on the account? - What percentage of users are active on the account? - Benchmarks - What was benchmark in accounts who upgraded to annual? - What was the NPS score on these accounts?     #### **When did the churn started flattening out?** This trigger is to identify when retention started flattening out It is important to know this because once you know when the churn has stopped that is exactly when it is a good time to pitch for moving to annual   ![The sooner the line](https://optiblack.com/hs-fs/hubfs/The%20sooner%20the%20line.png?width=700&height=425&name=The%20sooner%20the%20line.png)   If the retention graph looks like this, you will see that churn has stabilised from month 6 onwards Hence pitching for the annual plan when the user is in 6-7 months makes more likely to do so   If you try to do it early there is a chance that they have not got value yet and are not ready to commit     ### **Product Usage Metrics**   Here we need to understand the benchmarks about how power users or high-paying users - use the app \- How frequently do they log in? \- What are the top features they consume and at what rate?   Knowing this will help in understanding who is more likely to be dependent on application and convert to paid       ### **Account usage** Here we need to understand the average team size of users and benchmarks of the same \- What percentage of users are active on the account?     ### **Benchmarks**   Build benchmarks on annual vs. monthly accounts to see who qualifies for the same in monthly accounts. These benchmarks will help you in the next section to understand the triggers for identifying the accounts   | Benchmark | Churn Flattening Month | Product Usage Benchmarks | Account Usage Benchmarks | NPS Score | | --- | --- | --- | --- | --- | | Annual |   |   |   |   | | Monthly |   |   |   |   |   **Identify the accounts** - Based on the triggers identify which accounts are suitable for pitching annual subscription - High usage accounts - Accounts who have already spent time with the system and are getting value - Compile the accounts that - Keep this as a Monthly or quarterly exercise depending on how fast you can get the data         ### **Prepare**   Once we have the list of accounts ready for target, the next step is to prepare for the communications before approaching clients   Here is the checklist for the same - Build a one-click upgrade process - Calculate the benefits for each account and have one figure ready, for example, an account with 10 licences may have a different saving number than the one with 1 licence, the higher the number you can share, the faster the conversion process can be - Communication channel to use - at least we should use a combination of 2 channels to ask for an upgrade - Picking the right person to talk to in the account - so the email goes to the decision-maker - Ensuring all the open tickets for the accounts are closed - Ensuring the bad reviews or feedback have been addressed before approaching the client - Identifying the set of features that they are not using and that they can use to get more out of the service you are offering as part of the Annual upgrade.           ### **Approaching the Clients** Once you are ready with the preparation, here is the checklist to execute the same - Setup email automation to the target accounts to upgrade in 1 click - Ensure you highlight savings in the email - Try to get 100% open rate by sending 2-3 emails with different subject lines who have not opened the first email - Follow up in other channel in 2-3 days after they open the email but not upgrade - Take note of all the objections of not upgrading as feedback for business - Maintain the accounts upgraded and track of accounts who went from monthly to annual   ![Vishal Rewari](https://app.hubspot.com/settings/avatar/978df0061a7518a88e144c0b237262ab) Vishal Rewari [#Information](https://optiblack.com/insights/tag/information) / Keep reading ## More from Optiblack [![From Zero to a Multi-Region Analytics Backbone: How OptiBlack Built Scrut's Entire Data Platform](https://optiblack.com/hubfs/Optiblack%20Vishal%20Rewari%20Product%20Analytics%20(12)-3.png) Case Studies From Zero to a Multi-Region Analytics Backbone: How OptiBlack Built Scrut's Entire Data Platform](https://optiblack.com/insights/from-zero-to-a-multi-region-analytics-backbone-how-optiblack-built-scruts-entire-data-platform) [![AI in Geographic Segmentation: Key Use Cases](https://optiblack.com/hubfs/Optiblack%20Vishal%20Rewari%20Product%20Analytics%20(11)-4.png) Information AI in Geographic Segmentation: Key Use Cases](https://optiblack.com/insights/ai-geographic-segmentation-key-use-cases) [![RealBooks Selects Optiblack as Strategic Analytics Partner to Build Modern Data Stack for Real Estate Investors](https://optiblack.com/hubfs/Optiblack%20Vishal%20Rewari%20Product%20Analytics%20(11)-3.png) News RealBooks Selects Optiblack as Strategic Analytics Partner to Build Modern Data Stack for Real Estate Investors](https://optiblack.com/insights/realbooks-selects-optiblack-as-strategic-analytics-partner-to-build-modern-data-stack-for-real-estate-investors) / 15-minute exploration call ## Turn these insights into revenue. We'll go through your CRM, product, and analytics data together and show you exactly where growth is leaking. No setup. No dashboards. Just signal. [Book a strategy call →](https://optiblack.com/book-a-call) [OPTIBLACK](https://optiblack.com/) US: 1309 Coffeen Ave, Suite 1200, Sheridan, WY 82801 · +1 682 297 2970 — India: 297 Designs, 74 SBK Society, Paldi, Ahmedabad 380007 · +91 9819394297 Services [Data services](https://optiblack.com/services) [CRM services](https://optiblack.com/services) [AI services](https://optiblack.com/services) [Book a call](https://optiblack.com/services) Company [Customers](https://optiblack.com/customers) [About Us](https://optiblack.com/about-us) [Insights](https://optiblack.com/insights) © 2026 Optiblack · 2× Mixpanel Partner of the Year · vishal@optiblack.com ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Vishal Rewari", "url" : "https://optiblack.com/insights/author/vishal-rewari" }, "dateModified" : "2024-10-19T10:27:54.548Z", "datePublished" : "2024-10-19T10:12:17.000Z", "headline" : "Converting Monthly Paid Users to Annual subscribers", "image" : [ "https://optiblack.com/hubfs/How%20Assetplus%20Enabled%203000+%20partners%20to%20drive%20Financial%20products%20sales%20(33).png" ], "mainEntityOfPage" : { "@id" : "https://optiblack.com/insights/converting-monthly-paid-users-to-annual-subscribers", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://optiblack.com/hubfs/Group%201234.png" }, "name" : "Optiblack" } } ```