Thursday, September 22, 2011 New Subscription Discount

I was checking the website and noted that they are offering reduced priced subscriptions for new subscribers:

The deal is:

*  Annual 12-month subscription for the "World Explorer" membership is $19.95 per month, or $239.40 per year.  That is a 20% price reduction over the renewal price of $24.95 per month ($299.40 per year).

*  Annual 12-month subscription for the "U.S. Discovery" membership is $9.95 per month, or $119.40 per year).  That is a 23% price reduction over the renewal price of $12.95 per month ($155.40 per year).

For someone just starting out with, this is a pretty good deal (33 cents per day for the US membership, 66 cents per day for the World membership). 

In addition, a user can sign up for 14 days free membership.  However, if you do this, you need to either subscribe or cancel your trial membership before the 14 days are over in order to avoid paying the monthly subscription rate. 

Why is offering discounted one year membership rates?  I think that it's because of their "churn rate," which has been around 4% per month for the past two years.  That means that 4% of their subscribers drop their subscription EVERY MONTH!  That's almost 50% per year.  If they can keep more of their new subscribers by offering a discounted yearly rate, that is good for

It would be interesting to know the churn rate for the month-to-month subscribers, the quarterly subscribers, the half-year subscribers, and the yearly subscribers.  Is the churn rate that much lower for the yearly subscribers that there is no need for a discounted annual rate for existing subscribers?

Updated 5 p.m.:

In a Google Plus comment, Robert Burkhead noted:  "When checking out, use the coupon code G5JXTRY and the $23.99 price drops to $19.19"

In a Comment on this post, Ben Sayer noted:  "The first price is for the full version and the second for the upgrade."

Thanks guys -now you tell me!  I needed the upgrade anyway.  Will there be any difference between the full version and the upgrade?  Hmmm.


Brett Payne said...

As an annual subscriber for some years, I can tell you that it's always been a source of irritation to me that there has been no "loyalty" incentive in the form of a subscription price reduction.

Pam Beveridge said...

Wouldn't it be nice if Ancestry gave incentives to subscribers who take the time to submit corrections to the indexes...

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