Paddle Billing

Term Optimization for Paddle Billing

Increase lifetime value and reduce churn by intelligently identifying customers on a monthly plan who are likely to upgrade to a longer term plan.

What's new?

We launched Term Optimization for Paddle Billing. Term Optimization is part of Paddle Retain, designed to help you automatically reduce churn and increase customer lifetime value (LTV).

There are no changes to endpoints or fields in the API as a result of this change — it's an update to Paddle Retain.

Screenshot of a demo web app with a term optimization modal open. It says 'get 2 months free ChatApp by upgrading to an annual plan' and there are buttons to confirm or cancel.

How it works

Our research shows that customers on an annual plan have a lifetime value (LTV) that's 2-4x times higher than customers paying monthly, and they're less likely to churn.

Retain Term Optimization analyzes customer engagement and other subscription data to determine which customers on monthly plans are likely to upgrade to a quarterly or annual plan, then automatically reaches out by email, in-app, or during payment recovery.

It's fully integrated with Paddle Billing, meaning Retain takes cares of upgrading subscriptions in Paddle when customers decide to switch to a plan with a longer term length.

Next steps

This change is available now.

There are no changes to endpoints or fields in the API as a result of this change.

To get started with Term Optimization, check out our guide: Configure Term Optimization and proactive plan upgrades.

Learn more