Definition
Allowing existing customers to keep their original pricing or plan terms even after a company changes its pricing for new customers.
Why it matters for growth
Grandfathering protects existing customer trust during a price change, though it can complicate long-term revenue modeling if overused.
Example
A company raises prices 20% for new signups but lets existing customers keep their legacy rate as long as they stay subscribed.
FAQ
- What is Grandfathering?
- Allowing existing customers to keep their original pricing or plan terms even after a company changes its pricing for new customers.
- Why does Grandfathering matter for growth?
- Grandfathering protects existing customer trust during a price change, though it can complicate long-term revenue modeling if overused.
- What is an example of Grandfathering?
- A company raises prices 20% for new signups but lets existing customers keep their legacy rate as long as they stay subscribed.