Should Subscription Businesses Allow Users to Downgrade?

Rajeev Raman

August 1, 2023

Subscription businesses have a lot to consider when it comes to their offerings and pricing. One of the questions they must ask themselves is whether or not they should allow users to downgrade.

On the one hand, allowing downgrades can be seen as customer-friendly. It gives users the option to save money if they no longer need or want the full range of services. This can help retain customers who may otherwise cancel their subscription altogether.

On the other hand, downgrades can be seen as a revenue risk. If too many users downgrade, it could have a significant impact on the your bottom line.

So, what's the best approach? It ultimately depends on your goals. Here are a few things to consider when making this decision:

  • Price points and margins: If the your service has a range of price points and margins, allowing downgrades may not be as big of a risk if you can limit it by ltv.
  • Competition: If you are in a highly competitive market, downgrades may be necessary to remain competitive. Users may choose to switch to a competitor if they do not have the option to downgrade.
  • User behavior: If you have data that shows users are likely to churn, downgrades can be a powerful alternative. The business could then focus on re-engaging with the user on the benefits of the premium plan.

Ready to see more?

Our sales and technology experts can answer all your questions and help you explore the easiest use case for a no-code proof of concept test.

You may also be interested in


We have seamlessly integrated our Digital Customer Engagement Platform with the well-established Recurly. Enhance the growth potential of your customer engagement strategy with Redfast. 

June 11, 2024


In this article, we are going to look into the factors involved in a successful call-to-action (CTA) and the best practices to follow.

June 11, 2024


We have developed our digital customer engagement platform to integrate seamlessly with Adobe. Discover an integration of software designed to be the ultimate customer engagement tool.

June 11, 2024

See more