Definition
A price increase is raising prices for a plan or usage unit.
Why it matters
Price increases can lift revenue quickly but also increase churn risk if not rolled out carefully.
Pricing implications
Use break-even churn to evaluate risk, then decide whether to grandfather existing customers or phase changes.
Measurement tips
Track churn, downgrade rates, and support tickets after the increase.
Checklist
- Define the target segment and price change amount.
- Calculate break-even churn before rollout.
- Decide on grandfathering or phased rollout.
- Communicate value and timing clearly.
- Monitor churn and support volume after launch.
- Offer downgrade paths if needed.
- Review results and adjust quickly.
- Document learnings for future increases.