Fact: I just switched my cloud storage solution’s billing from monthly to annual and paid for a year up front. Why? Well, mostly because of the volatile pound.
If you run a non-UK-based subscription service, such as a SAAS or product with software licensing, this could be a good marketing opportunity that could pay for your summer holiday, and here’s why.
In? Out? Shake it all about?
I’m not sure how widely it’s known in the rest of the world, but the UK is currently part of a thing called the European Union (EU), which essentially means we share some administration and trade and free-movement agreements with the rest of Europe.
And on June 23rd we’re having a referendum on our membership of the EU. And the polls are showing it to be a Very Close Thing.
Now, I’m no economics expert, but I know that market stability is based very much on understanding what the future will look like politically and economically. And the uncertainty about the EU is making our currency a little volatile.
Plus, many important and far more knowledgable people than I have said that there is a significant economic risk to leaving: the governor of the bank of England, our prime minister, our “Institute for Fiscal Studies“, the German Chanellor, and others.
And if there’s an economic shock, then our pound will almost certainly fall.
Give me deals!
If the pound falls, it become expensive for me to buy things in other currencies.
So I can get some insurance on price by buying things in other currencies now.
So I went annual with my cloud storage to minimise the risk of it becoming more expensive. And as I did so I was thinking “what other services might I be able to extend for a year at this point?”.
And I just wondered if there’s something in here that’s helpful for software/service providers and their customers: offer them a “Pre-Brexit Price Risk-Reduction renewal” and allow them to extend their subscriptions for a year before the 23rd June, regardless of their renewal date.
It could get you some cash in the bank and some happy customers if you get it right!