hard20 pts · first answer countsrenewalschurn-prevention

Downgrade or risk losing them?

A $100,000 ARR customer asks to downgrade to $60,000. If you refuse, you estimate a 50% chance they renew at full price and a 50% chance they leave. Based on expected ARR, what should you do?

A.Refuse, because $100,000 is more than $60,000B.Refuse; expected values are equalC.Offer a 60% discount insteadD.Accept the downgrade: $60,000 is more than the $50,000 expected if you refuse, and the relationship stays open for future growth

Discussion 0

Join free to post in the discussion.

Downgrade or risk losing them?

Discussion 0

Related questions