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  • Writer's pictureGreg Madhere

On The Death of Grandfathering

This week both Spotify and YouTube are raising prices for their respective plan subscriptions.

YouTube sent a notice to grandfathered customers letting them know that in 3 month's time they'll lose their grandfathered subscription pricing.

In last month's post on customer retention, I talked about grandfathering customers who have been loyal from the early days.

It's simple really.

Charge new customers new prices.

Reduce the risk of churn by keeping customers locked into their original pricing.

It's a fact that acquiring new customers costs more than keeping good, existing customers happy and returning.

Subscription is a great business model, until it's not.

It's important to remember that when your customers stop winning, you eventually stop winning.


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