We have now completed the upgrade process. I have contacted 76 different customers about the migration. Sixty nine have upgraded and seven customers have cancelled. This is a 91% conversion, well above our original of 50% we had expected.
Looking back on the process, here are the six most important lessons we learned from the experience:
- Be Reasonable. Once I explained the reasoning for the price increase and why it made sense for BrightGauge to move in that direction, customers were more open to listening to the proposal. By highlighting the increased services they had been receiving well below market price as well as how the additional revenue would be used to improve our product, I reinforced that our legacy clients were actually partners, and an important part of our continued growth and development. In fact, many customers were surprised that we hadn't increased prices earlier.
- Honesty Is The Best Policy. No one was thrilled that their monthly fee was going to increase by between 40 and 100%, but they appreciated the personal communication and our willingness to be honest and transparent about the process.
- Be Quick. Announce the changes and then set a reasonable time period for adjustment. Your customers should be able to make changes within 30 days. Set a date and stick with it.
- Get Personal. Every customer, whether they committed to the new pricing structure or not, appreciated the personal touch. I'm glad I reached out to them individually, which honored their early commitment to our company, and decided against a blanket email from our generic news or public relations address.
- Trust Your Gut. Sending out a mass email didn't feel right to me, and after a little research and outreach, it was clear my instincts were spot on.
- We're In This Together. Our clients are business owners too and we learned that they have had to raise their prices at one time or another. Acknowledging that the price increase was best for our strategic growth and for their experience with us a service provider created a common bond over a shared experience.
This process was an important exercise for us as a company and a tremendous growth opportunity for me as an executive. I hope you will continue to follow our activities and initiatives as we move forward.