Charge Customers Before They Consume

Paying beforehand helps numb the pain of paying because customers can look forward to the benefits.

Charged on Monday for benefits received later in the week

Overview

Customers should pay before using your product. For one, you’re more likely to get paid. Always nice.

Second, customers will be happier. While prepaying, they can look forward to the benefits. If they already consumed those benefits, nothing will numb the pain of paying (Prelec & Lowenstein, 1998).

If you charge customers every month, charge them at the beginning of the month.

Prelec, D., & Loewenstein, G. (1998). The red and the black: Mental accounting of savings and debt. Marketing science, 17(1), 4-28.