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> Do you have any proof of this? Not proof beyond my own example, but that's one case for, and none against that I know of. I expect that at a bare minimum, i
by kbenson 8y ago
> Do you have any proof of this?
Not proof beyond my own example, but that's one case for, and none against that I know of. I expect that at a bare minimum, it will help retain customers through the period where the pricing is new, and at the point you eventually move them to new pricing (perpetual grandfathered pricing is stupid, I'm not going to argue for that), it may help with the reception.
A lot of how we perceive our reality is influenced by the narrative it's housed in. That's why it's easy for the internet to blow up every couple months, but if you revisit the issue a while afterwards, there's often a different, more nuanced story that was lost.[1][2]
In a reality where the narrative can run wildly out of control to your detriment, there is some benefit to being able to delay or protect your customers from that. I'm not sure whether the benefit is always worth it, but I'm sure it's a tool I would rather have to call on than not.
As a simple example, Netflix's price change in 2014 was widely publicized, as it was one of the first major price changes they had done (a 25% increase of the base cost), but they grandfathered in the people that were paying the lower price previously (37% of their customer base).[2] The previous time the changed pricing (by splitting our DVD service but keeping streaming only the same price.... so a price change for some), there was mass outrage and cancellations.[3][4]
So, the question is, did Netflix's differing strategy of grandfathering customers avoid the cancellations because people stayed loyal, or because not enough customers felt affected enough to contribute to the narrative that time, or because the change was purely pricing and less complicated, or just because the narrative didn't take hold for unrelated reasons?
1: https://apnews.com/90c35b0e3b1f41abbcb28eef7cf4bd9a https://apnews.com/90c35b0e3b1f41abbcb28eef7cf4bd9a
2: https://www.pastemagazine.com/articles/2016/04/netflix-is-increasing-its-monthly-subscription-her.html https://www.pastemagazine.com/articles/2016/04/netflix-is-in...
3: https://gigaom.com/2014/05/09/the-netflix-price-increase-is-here-new-members-pay-9-for-hd-8-for-sd/ https://gigaom.com/2014/05/09/the-netflix-price-increase-is-...
4: https://gigaom.com/2011/07/12/netflix-price-hike/ https://gigaom.com/2011/07/12/netflix-price-hike/