How do you increase the price of a product without scaring away customers?
In my 4 or 5 years of working at startups, I’ve noticed that people always have a problem when they are told about changes:
– free version jumped to a trial with a subscription or lifetime purchase
– subscription and lifetime purchase prices increased
People who have already experienced a certain price (or free access) are very reluctant to pay more when they know they were paying less.
New people are more likely to jump to the newer (higher) price.
But older users usually start complaining:
– on support
– in comments under posts on social networks
– in public forums where ratings are given
How do you communicate the increase in the original price?
(e.g. do you add features to justify it, or what is your crisis communication plan that limits your churn rate and negative sentiment)
Replies
Softorino 💻📲
Not my call on the pricing, but the messaging around it is usually mine. What's saved me the most heat is picking which channel breaks the news first, before a support ticket or a public review does it for us. A price change a loyal user reads from us feels different than one they stumble into while already annoyed.
minimalist phone: reduce your screentime
@yelyzaveta_kibets What I would like to do is to keep the same price for the loyal users. But as soon as someone cancels and then want to return... so probably new price :)
In my opinion transparency matters most. Explain why the price is changing by comparing the new features and benefits, clearly show the added value and expected ROI, and explain why the new price is justified. Giving existing users enough time to adjust can also make the change feel fairer.
minimalist phone: reduce your screentime
@aruna_polosofttech How long before it happens we should communicate that fact?
@busmark_w_nika I’d communicate it at least 1–2 weeks before the increase. For existing customers, I’d also give them a transitional discounted price for the first couple of months before moving them to the new pricing. That gives them time to understand the changes and adjust without feeling caught off guard. This is where marketing also plays a crucial role.
I've never actually raised a price. If I did, I think I'd keep existing customers on what they're paying now and only put new customers on the new price
minimalist phone: reduce your screentime
@hisashispace Probably, i will go the same way.
Adding useful features can definitely help, but I don’t think every price increase needs a big new feature. Sometimes costs and the product itself just change over time.
minimalist phone: reduce your screentime
@new_user___2622026ae45f6a6f9a320ac But you need to prepare current users somehow. Many of them are reluctant to pay more.