Increase prices for existing customers
1. Analyze your past price increases to find out what to repeat and what to avoid.
This also helps gauge consumer expectations based on previous experiences.
2. Compare your product’s current price to competitors.
For example, if you are the value option, a price increase may motivate consumers to consider newly price-competitive alternatives.
3. Survey your customers using Price Laddering or the Van Westendorp Price Sensitivity Meter to gather price sensitivity data for different cohorts.
For example, your enterprise SaaS clients may have a lower sensitivity to changes than your small business clients.
4. Offer discounted upgrades, limited access, or delayed price increases to avoid grandfathering.
For example, limit grandfathered customers’ access to existing features and offer them a discount if they upgrade.
5. Get qualitative feedback by discussing your new pricing plans with at least 20 current customers.
Ask questions like, At which price would you consider the product so expensive that you would not consider buying it?
6. Create a communication plan that explains why the price is going up and how the changes will affect current customers.
Inform clients 5–6 months in advance of your price increase to avoid surprising them. Focus on the length of time since your last price increase and the value you’ve added to your product since then.
7. Measure consumer feedback by monitoring behavior, such as changes in time-to-purchase or onboarding flows.
In addition to this adoption cycle data, you can also send consumers a short survey to ask for their feedback.