Offering upgrades or downgrades can be a powerful tool for building customer loyalty and increasing revenue. However, the approach needs to be strategic, personalized, and focused on the customer experience . Here’s how to apply it effectively.
Personalization of the approach
Customization is the foundation of any successful fronk oil email list upgrade or downgrade strategy. Customers don't want to feel like they are receiving a generic offer, but rather a proposal tailored to their needs.
Use data about customer behavior , such as:
service usage history;
preferences;
previous feedbacks .
For example, when proposing an upgrade , highlight specific features that can benefit the customer. In the case of a downgrade, reinforce that the new option was designed to better meet the consumer's current profile.
Demonstration of value in the upgrade
When promoting an upgrade , it is essential to clearly demonstrate the additional value the customer will receive . Consumers are often hesitant to invest more because they do not see the benefits of the higher plan.
Here, practical examples can make all the difference. Use metrics, case studies, or even simulations that show how the upgrade can improve the experience, save time, or generate results.
If it is a digital service, offer a visual comparison between current and higher plans, highlighting relevant advantages.
Empathetic approach to downgrade
Proposing a downgrade requires sensitivity. Customers who choose this option are often facing financial constraints or a change in priorities. Showing empathy and understanding the customer’s situation helps maintain the connection.
A good practice is to present the downgrade as a temporary or adaptive solution. Phrases like “We understand that your needs have changed” or “This plan offers the essentials at a more affordable cost” show that the company cares.
This approach reduces the risk of cancellation and creates a positive experience even in a challenging situation.
Offer a “trial” or “test” of the new plan
Before proposing a permanent change, offering a free trial or test of the new plan can be a powerful strategy.
This approach allows the customer to experience the benefits of an upgrade or realize the alignment of a downgrade without immediate commitment.
For example, provide 30 days of access to the premium plan to demonstrate the benefits before suggesting an upgrade .
In the case of downgrades , offer a preview showing how the customer can continue to enjoy essential features even with the reduced cost.