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Thread: Customers requesting downgrade
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07-22-2004, 12:06 PM #1Junior Guru
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Customers requesting downgrade
What is the best way to convince a customer to not downgrade? Does anyone use a standard letter that works a large percent of the time?
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07-22-2004, 12:12 PM #2Web Hosting Master
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£10 fee.
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07-22-2004, 01:32 PM #3Web Hosting Master
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I've never felt the need to do so. If a customer feels the need to downgrade their plan, I let them.
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07-22-2004, 03:38 PM #4WHT Addict
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Originally posted by inogenius
I've never felt the need to do so. If a customer feels the need to downgrade their plan, I let them.Solid-Hosting.net - affordable multiple domain hosting solutions
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07-22-2004, 04:08 PM #5Web Hosting Master
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Have you ever needed to downgrade something in life? Most likely yes... Does it mean the service is bad? Most likely no...
Most clients downgrade for money reasons or because they just don't need as much anymore. If service was bad, they would look for a different host
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07-22-2004, 04:23 PM #6Web Hosting Master
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Why would you not let them downgrade? Give them what they want. Find out why they want to downgrade.
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07-22-2004, 04:25 PM #7Web Hosting Master
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Greetings:
We've allowed customers to downgrade as well as upgrade over the past nine years.
We've even had a case where we had a signed contract for hosting five high end Sun Microsystem servers for $32,000 per month (the servers were maxed out), and nine months into the 12-month contract the client asked for a downgrade.
We moved them to four Linux, Intel-based severs and cut their hosting in half.
We've also had cases where we approached customers who could fit on a lesser server or service; and recommended they downgrade.
We've found over the years that a focus on the needs of the customer over the needs of money to build a loyal client base.
They know you are putting their best interest at heart when you put their needs first over the dollar bill.
Also, since we compete on value, when there is a downgrade in fees paid, there is a downgrade in value provided. But most business customers know that and accept that fact.
Thank you.
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07-22-2004, 05:53 PM #8Web Hosting Master
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I think if they feel you won't let them downgrade their plans, they might consider downgrading you =)
dotGig
<:<: [Fruit eating linux administrator]
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07-22-2004, 05:58 PM #9Web Hosting Master
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If you impose a downgrade fee, your clients may very well find a new hosting company.
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07-22-2004, 06:21 PM #10Web Hosting Guru
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I don't see what the problem is is with downgrading. Many (if not the majority) of shared hosting customers overestimated their server space and bandwidth needs. Making them guess and slamming them with fees reminds me of the cell phone industry.
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07-22-2004, 08:42 PM #11Web Hosting Master
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What's the difference in downgrading as having signed up for that plan to begin with? At least you got the bigger money out of them for a few months
Better to downgrade as to cancel I supposeGary Harris - the artist formerly known as Dixiesys
resident grumpy redneck
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07-22-2004, 09:56 PM #12Web Hosting God
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Some people downgrade, some people upgrade - such is life.
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07-22-2004, 11:27 PM #13Aspiring Evangelist
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I would much rather they downgrade rather then leave my company altogether...
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07-22-2004, 11:53 PM #14ex-Aussie
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Originally posted by NexDog
Some people downgrade, some people upgrade - such is life.Former Webhost... now, just a guy.
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07-23-2004, 12:00 AM #15Junior Guru
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Customer's point of view: I will never agree to pay a fee to upgrade or downgrade an account. What effort does it involve for the host these days with all the control panels out there? If you're not interested in what fits my needs best, then you're not the host that fits my needs best.
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07-23-2004, 12:26 AM #16Web Hosting Master
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If customers want to downgrade, so be it. I only advise customers not to downgrade if I believe it will be detrimental to their service.
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07-23-2004, 02:28 AM #17Web Hosting Master
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When I first signed up with my home ADSL provider I went onto their 512/128k 3GB download limit plan. About a year later I was at their website and noticed that the download limit on my plan had been increased to 10GB and that the limit on the next cheapest plan was now 6GB. I downgraded to the 6GB plan which is AUD$10 less per month. Why wouldn't you save money if you could?
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07-23-2004, 02:39 AM #18Hosting Specialist
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Trying to pressure your clients into keeping a higher level of service isn't the way you want to go. Customers will sometimes downgrade regardless of the quality support and service you may provide. Just something you have to expect for and take in stride.
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07-23-2004, 02:40 AM #19Web Hosting Master
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Originally posted by IncognitoNet
Trying to pressure your clients into keeping a higher level of service isn't the way you want to go. Customers will sometimes downgrade regardless of the quality support and service you may provide. Just something you have to expect for and take in stride.Gary Harris - the artist formerly known as Dixiesys
resident grumpy redneck
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07-23-2004, 05:16 AM #20Web Hosting Evangelist
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I agree with others, i would rather downgrade that loose the client completly.
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07-23-2004, 08:40 AM #21Web Hosting Master
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I'm suprised by the lack of business sense I read in this thread. Are you running businesses or charities??
We offer special treats on our higher packages therefore we don't want people signing up to the higher packages gaining the rewards then freely downgrading to the cheapest. Hence a £10 fee if they try it. If it's obvious they've just made a mistake and ordered a package with too higher specs for them then that's different. Which do you think makes a customer feel more special? Free downgrade or us waiving the fee "just for them"?
Also the "rather downgrade then lose" arguement is silly, if a client is that ready to hop ship I wonder at the level of service and support you are offering? (I'm not trying to say it in a negative way that you all suck but have more confidence in the service you offer! Customers are loyal things in the main!)
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07-23-2004, 10:54 AM #22WHT Addict
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I'm currently rebranding my company and redoing all of my tariffs.
I will be allowing the customer to customize their plan however they want, they will be able to add and remove hard disk and bandwidth online, 24x7.
If they downgrade a price plan they have already payed for, then the system will just generate credit on their account, which can't be turned into real cash.
I believe complete flexibilty is a good selling point.
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07-23-2004, 10:58 AM #23WHT Addict
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I haven't finished my new rebranded site yet...
but here is the Linux price comparision page along with details of how users can upgrade and downgrade 24x7.....
http://www.brightdawn.net/bd/order_l1/compare.php
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07-23-2004, 12:53 PM #24Web Hosting Master
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Originally posted by NetHosted-Andrew
I'm suprised by the lack of business sense I read in this thread. Are you running businesses or charities??
We offer special treats on our higher packages therefore we don't want people signing up to the higher packages gaining the rewards then freely downgrading to the cheapest. Hence a £10 fee if they try it. If it's obvious they've just made a mistake and ordered a package with too higher specs for them then that's different. Which do you think makes a customer feel more special? Free downgrade or us waiving the fee "just for them"?
Also the "rather downgrade then lose" arguement is silly, if a client is that ready to hop ship I wonder at the level of service and support you are offering? (I'm not trying to say it in a negative way that you all suck but have more confidence in the service you offer! Customers are loyal things in the main!)
Andrew
And yes I WOULD rather downgrade than have them move to another provider, people sometimes "overestimate" requirements and find they don't need so much, rather than be a dick about it we just let them downgrade and keep right on trucking. For every 1 downgrade you'll see dozens of upgrades.Gary Harris - the artist formerly known as Dixiesys
resident grumpy redneck
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07-23-2004, 02:27 PM #25Web Hosting Master
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I think a small downgrade fee of $5 or 10 fee is fair. After all, you do have to login to the server, change all the account settings and sometimes that can be a pain in the butt.
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