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Most of the time you want to grandfather your original customers in so they keep the same price. Once strategy I did was I broke my product "Original" into two
by warent 5y ago
Most of the time you want to grandfather your original customers in so they keep the same price. Once strategy I did was I broke my product "Original" into two parts "Primary" and "Add-on" with their own prices.
My customers got the old pricing on the new "Primary" service, so they were happy. But did not get the new "Add-on" which included lots of new features and updates to a slice of the "Original" product that they loved. They could continue using "Original" but it was no longer maintained and generally poorer quality. So many people added the "Add-on" to their subscription too. My revenue doubled.
- simplestats 5y agoYou're saying "Primary" was a downgrade from "Original" at the same price? What works best here may be field-dependent. "Poorer quality" is not acceptable in some applications, where it directly affects their bottom line. So once the degratation and reliability issues start, the older version might as well be cancelled. Until I give them the hard "break-up" message, these are the people bugging me constantly. Once they have a solution that does what they need at a price they love (which becomes a permanent price ceiling for some), there's on graceful way out. I also have the problem that "no longer maintained" fairly quickly (matter of months perhaps) progresses into "no longer working" without some level of maintenance (which grows as components become increasingly changed and deprecated). So it's a delayed cancellation anyway.