What’s the best way to announce a price increase to existing customers to minimize backlash? (e.g., how much advance notice, how to communicate the added value, etc.)

Based on the principles outlined in our SaaS pricing book, Price to Scale, the best approach to announce a price increase to existing customers while minimizing backlash is to be transparent, proactive, and segmentation-focused. Here are the key guidelines:

• Provide Adequate Advance Notice:
Although the book doesn’t specify an exact number of days, the overall strategy is rooted in giving your customers enough time to digest the change—typically a notice period in the range of 60–90 days is advisable. This period allows customers to plan accordingly and reduces the element of surprise.

• Communicate the Added Value:
Explain clearly why the price increase is necessary. Tie it to improvements in your product, service, or overall value proposition. When customers understand that the increase reflects enhanced features or elevated service standards, the change feels more justified. Our book emphasizes that clear value communication is essential, especially if the product remains largely the same but the market dynamics have shifted.

• Segment Your Customer Base:
As discussed in Price to Scale, one size does not fit all. Different customers—whether high-value accounts using core features extensively or those who secured early discounts—might require tailored messaging. Some customer segments may even benefit from alternative options like a premium upgrade or a flexible discount plan, easing the transition and mitigating resistance.

• Offer Alternatives or Upgrades:
Instead of simply increasing prices across the board, consider providing alternatives. For example, you might offer a better plan for the same price or propose an incentive to commit to a longer-term contract in exchange for maintaining current pricing for a specified period. This proactive approach can soften the impact, making the change feel more like an upgrade rather than a penalty.

• Leverage Multiple Communication Channels:
Make sure the announcement reaches your customers through the channels they trust most—whether emails, in-app notifications, or even a conversation from their account manager. Consistent and empathetic communication builds trust and helps manage customer expectations.

In summary, our pricing strategy book recommends that you minimize backlash from existing customers by ensuring transparency, providing sufficient notice, clearly articulating the added value, and tailoring your approach to the different segments of your customer base. These steps help in turning a potential point of friction into an opportunity to reinforce customer loyalty.