Maintain customer satisfaction through planned, researched, and well-communicated price increases.
This also helps gauge consumer expectations based on previous experiences.
For example, if you are the value option, a price increase may motivate consumers to consider newly price-competitive alternatives.
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.
For example, limit grandfathered customers’ access to existing features and offer them a discount if they upgrade.
Ask questions like, At which price would you consider the product so expensive that you would not consider buying it?
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.
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.