Eric Siu explains why raising prices hurts customer lifetime value in today's economy. Instead, use low entry pricing to get customers in the door, then upsell them later when they're already committed.
A lot of marketers believe that increased pricing typically brings better customers and you get a different type of customer sometimes when you increase prices. Not always. We've seen in marketing for a lot of companies in today's environment, when you increase pricing, you actually increase churn and you can decrease your LTV. What we found to be really effective in today's world, especially with this economy, having some sort of low entry pricing and then upsell them into more expensive stuff later on.
