What kind of customer pushback might we expect when changing pricing or packaging, and what are some strategies to manage it (for example, offering grandfathering, special upgrade deals, etc.)?

Below is an overview of common customer pushback scenarios along with strategies to manage them, as outlined in our saas pricing book, Price to Scale:

Potential Customer Pushback:

• Customers who’ve been enjoying lower introductory or discount rates may object to higher prices or more restrictive packaging changes.
• Users on customized or heavily discounted plans might feel sidelined or unfairly treated if new packages seem to favor newer customers.
• When the new pricing lineup closely resembles current ones—with only minor tweaks—customers may see little value in upgrading or fear losing benefits they once enjoyed.

Strategies to Manage the Pushback:

• Segment Your Customer Base:
As discussed in Price to Scale, segmenting your customer base is crucial. Tailoring different packages for heavy users versus light users ensures that each cohort receives a plan that reflects their usage and value perception. This segmentation helps preempt objections by addressing unique needs and mitigating blanket pushback.

• Be Transparent and Proactive:
Proactively communicate the reasons for your pricing changes. Explain the benefits, such as improved features or enhanced service quality, and remain upfront about any upcoming price adjustments. Clear communication minimizes surprise and builds trust.

• Offer Alternative Options:
Consider offering creative alternatives such as:

Grandfathering: Allowing current customers to remain on their existing terms for a set period.
Special Upgrade Deals: Present better options for the same or slightly higher prices so that existing customers feel valued and see a tangible benefit in moving to a new plan.
Bundled Discounts or Contract-Based Incentives: Offering a discount in exchange for a longer-term commitment or an add-on, ensuring that the customer feels rewarded for adapting to the new structure.

• Differentiate the New Lineup:
Price to Scale emphasizes that merely discounting your current tiers isn’t enough; creating a distinctly new lineup can help avoid direct comparisons with the old structure. A clear differentiation prevents customers from simply comparing the old and new packages on price alone.

In Summary:
Be prepared for pushback from customers who may be resistant to changes, especially if they feel they’re losing benefits or getting less value than before. By segmenting your customer base, communicating transparently, and offering tailored alternatives (such as grandfathering or upgrade incentives), you can smoothly manage the transition. These approaches not only ease customer concerns but also reinforce the overall value proposition, ultimately supporting smoother revenue and profit growth.

This strategy, outlined in our book Price to Scale, helps ensure that pricing changes are positioned as value-enhancing rather than merely cost-increasing for your customers.