By Kane on Tuesday, 24 January 2017
Posted in Post Sales
Replies 8
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So it is renew time again and every year I am disappointed with StackIdeas renewal pricing.

20% is great... except it is no discount at all.

If I were to buy the bundle, ES, ED, EB for the first time, I would get 20% off.

So when I get the renewal email and see 20% off, I'm excited, and then bummed when I see the discount only applies ala carte. And after adding up my ala carte, discounted pricing, guess what? It's the about the same as the bundle pricing for first timers. No loyalty discount at all.

This is negative loyalty and prompted me to take the time to write this second message (1st was last year). I own a software loyalty company. I recommend fixing this problem or people will leave as soon as there is a better offer.

Here are good articles on loyalty.

“A 5% increase in customer retention can increase a company’s profitability by 75 percent”

http://www.bain.com/Images/BB_Prescription_cutting_costs.pdf

“Reducing your customer defection rate 5% can increase your profitability 25-125 percent”

http://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/Listen-to-the-Voice-of-the-Customer-53239.aspx

“The average repeat customer spends 67% more in their 31st-36th months of their relationship with a business than in months 0-6”

http://www.bain.com/Images/Value_online_customer_loyalty_you_capture.pdf
Hello Kane,

We do have a new set of bundles which are relatively cheaper than renewing or purchasing them separately. You can view them at http://stackideas.com/pricing
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Tuesday, 24 January 2017 11:31
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Yes at $249. (I do see you added newly priced komento...changes the calculus a bit)
Ala carte adds up to $245.60.

This makes the true renewal discount only 1.4% over the 1st time buyer.
1.4% for a reproducible product (admittedly not support), is practically a negative discount.
This is how a consumer thinks. Your discount is perceived negatively. How does that sound?

Create a better "loyalty" discount for us who have been with you some years and alway buy bundles.
We want to feel valued. We pay your salaries, you make products we love. It is a partnership.

With all that said, your products and support really do rock. I'm willing to pay more for it, but you do need to see what your pricing does in the mind of your customer. I would love to see your company nail every aspect of your business model.
We love StackIdeas.
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Wednesday, 25 January 2017 00:07
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Hello Kane,

Thank you for your input on this and I greatly appreciate your insights on this but to be honest I think you are not calculating this correctly because EasySocial in our bundles are good for 12 months. Single (ala-carte) purchases are 6 months.

Here's a break down of ala-carte prices versus the bundle:

EasySocial Pro (6 months) = $149
EasySocial Pro (6 months) = $149
EasyDiscuss Pro (12 months) = $79
EasyBlog Pro (12 months) = $79
Komento Pro (12 months) = $45

Total for ala-carte with 1 year of valid subscriptions and support = $501
With your ala-carte 20% renewals = $400.80

1 domain support Pro Bundle (12 months) = $249 (Total savings of $252)
2 domains support Club Bundle (12 months) = $299 (Total savings of $202)

With club bundle loyalty:

1st year = $299
2nd year = $254.15
3rd year onwards = $209.30

I believe this is a pretty fair pricing for our loyal customers who are using all our products on their site or their client's site
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Wednesday, 25 January 2017 00:19
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