Tier Grace Period Design
Design grace periods that reduce churn without abuse.
Quick checklist
- Define grace periods by tier.
- Keep terms consistent across billing and support.
- Communicate grace periods before enforcement.
- Track churn impact after changes.
- Prevent repeated abuse with clear limits.
Step-by-step
- Choose grace period lengths per tier.
- Align grace periods with billing cycle cadence.
- Define what happens after the grace window.
- Update contracts and help docs.
- Review churn outcomes each quarter.
What to watch
- Grace periods that override contract terms.
- Conflicting messaging between teams.
- Lack of enforcement after the grace window.
Common mistakes
- Giving the same grace period for all tiers.
- Making the policy hard to find.
- Changing the grace policy without notice.
