What is the commitment period?
You can get your customers to commit to your weekly or monthly billing subscription products. This allows you to charge monthly instead of up front whilst knowing the customer is committed to you.
This means you can offer more discount for your monthly billed boxes knowing the customer isn't going to cancel for however many weeks or months.
This is a big deal to be honest ⚡️. We tested this with merchant's and it greatly reduced churn (cancellations) and increased sign ups.
This does require that you have terms & conditions setup (you can do that in your settings page) and that your terms state the commitment terms. We also recommend making it clear on your website.
If you don't know how to setup your terms and conditions page, make sure to check out this article.
- Is subscription going to cancel itself after the expiration of the commitment term?
No! Please note that setting up commitment term only prevents customer from actually cancelling his/her subscription for the given period of time. Customer's subscriptions won't cancel after the expiration of the commitment period but will continue indefinitely until necessary action is taken to cancel the account.
- What are the main benefits of setting up a commitment period for my products?
This will ensure that customer won't churn during the commitment period. And when you know that customer will stick around for a longer time, you can give them a discount on a monthly basis in order to incentivize them to commit to your product.
- Is commitment period shown on the checkout?
Nope. There is no field on the checkout that's highlighting for how many months customer is committing by subscribing to a product. Thus the necessity of making it super clear on your site and in terms and conditions.
- Can customers cancel their subscription during the commitment term?
When they checkout on the product that has certain commitment term regulated, they won't be able to cancel their subscription from their customer login area until the commitment term end date is reached.
However, please note that we can't prevent customers from pulling off money from their card or cancelling the card or even filing a charge back with their bank. In all of these situations payments won't go through and commitment terms won't be met.