Definition
Grandfathering means keeping existing customers on old pricing while new customers pay higher prices.
Why it matters
Grandfathering can reduce churn risk and support load during price increases, but it delays revenue uplift.
Pricing implications
If you grandfather too long, revenue growth slows. If you do not grandfather at all, churn risk may rise. Balance by segment and contract term.
Measurement tips
Track churn and upgrade rates separately for grandfathered vs new pricing cohorts.
Checklist
- Decide which segments get grandfathered.
- Set a clear end date or upgrade path.
- Communicate changes with advance notice.
- Model revenue impact vs churn risk.
- Track churn and support tickets post-change.
- Avoid multiple legacy price tiers without clear rules.
- Align grandfathering policy with contracts.
- Review the policy after each pricing update.