In the subscription model driven world we're living in, often it seems companies forget the customers who once gave them a shot early on by continuously raising prices year after year.
I'm referring to large, multi-national corporations who clear billions in profit and have millions in subscribers.
The value of customer loyalty appears to pale in comparison to a shiny new customer willing to pay higher prices.
While raising prices is perfectly normal business practice to sustain growth and ward off inflation, it's a shame to lose those who stuck around through the ever-flawed iterations during all of the growing pains.
One alternative is a bit old school (pun warning), but still holds value: Grandfathering.
Grandfathering a loyal customer, not a problematic one, into "day one" prices is one of the easiest choices a company can make to foster retention and maintain overall goodwill.
Another alternative is simply leveraging recognition for their loyalty.
American Express lets you know you've been a member since mm/dd/yyyy . No need to look it up, it's right in front of you on their charge cards.
Acknowledging the relationship keeps customers in the fold. Who wants to break up after being together for 10+ years? Recognition of the longevity triggers a sense of pride.
Retention tactics can be considerably less costly than new acquisitions, and are a winning move for brands in an increasingly competitive environment.
Provided the costs aren't prohibitive, it's not a bad move for small businesses either.
It's an act of gratitude.
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