A friend of mine recently received an email about a price increase for his CRM plan from Insightly. To say he was upset would be an understatement!
There are a number of aspects of this price communication that are poor and could have been handled in a much better way.
1. ๐๐ซ๐ข๐๐ ๐๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ข๐ง๐
The email proposed an increase from $252 to $348 per yearโa 38% jump. On the surface, this seems like a huge hike. But in reality, itโs just an extra $96 a year, or $8 more per month.
A better approach would have been to frame the increase as a shift in the โper monthโ priceโfrom $21 to $29 as the perceived magnitude of the increase will seem less.
2. ๐๐จ๐ง๐๐ฎ๐ฌ๐ข๐ง๐ ๐๐๐ง๐ ๐ฎ๐๐ ๐
The email used the term โdeprecatingโ (as in, โto discourage useโ) which suggests there is still a choice for the customer. A better form of words might be โdiscontinuingโ or โno longer supporting the older plansโ.
3. ๐๐๐๐ค ๐จ๐ ๐๐๐ฅ๐ฎ๐ ๐๐๐ฌ๐ฌ๐๐ ๐ข๐ง๐
No attempt is made to explain why the new plan would be better for customers, other than to refer the reader to their pricing page – putting the burden on the customer to figure it out.
A stronger approach would have highlighted the benefits of the new plan directly in the email, such as improved features or enhanced support. Customers need to understand the why behind a price increase, not just the what.
4. ๐๐๐ฌ๐๐ง๐๐ ๐จ๐ ๐๐ฆ๐ฉ๐๐ญ๐ก๐ฒ
Price increases are rarely welcome news, and this email failed to acknowledge that. A little empathy could have gone a long way here. For example, language like:
“We understand that price changes can be challenging, but we believe the enhanced features of our new plans will deliver even greater value to your business.”
5. ๐๐ข๐ฆ๐ข๐ญ๐๐ ๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐๐ซ ๐๐ก๐จ๐ข๐๐
The email referred to an automatic upgrade, leaving no room for the customer to make a decision. This lack of agency can make customers feel trappedโespecially for a CRM system where switching efforts can be high. My friend, for instance, has over 10 years of data and contacts stored in his account.
A better option? Include a clear opt-out mechanism: โIf you wish to change your mind about this proposed upgrade, please contact us here.โ
๐๐ก๐ ๐๐ข๐ ๐ ๐๐ซ ๐๐๐ฌ๐ฌ๐จ๐ง
This situation highlights a broader truth: When it comes to price communication, language and presentation matter as much as the numbers themselves.
Sellers need to put the same level of effort into crafting persuasive, customer-focused messages about price changes as they do in designing their pricing plans. Missteps like this can not only frustrate customers but also damage trust.
Let me know if you need any help with your price communications.