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Honest question... If discounting the first year for new customers gives them growth with negligible churn from existing users, why would they offer a discount
by shostack 10y ago
Honest question... If discounting the first year for new customers gives them growth with negligible churn from existing users, why would they offer a discount to loyal users and unnecessarily hurt their margins/LTV?
I feel like this comes up a lot with subscription pricing. Is it not enough that they try to continually add value to the service despite the issues they encounter?
- pasbesoin 10y agoThey're getting worse at many things while asking for more money. Since we are otherwise treated the same, I and other existing members are essentially subsidizing that intro rate. For a system that, per my complaints above, is becoming worse rather than better while taking on those new customers. Also per my original comment, keep the stuff you're already doing working and working well, before adding on the new stuff. Maybe the new stuff attracts new customers. But the worse stuff is pissing me -- Mr. Retention -- off.