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Create upgrades, downgrades and member offers

1. ​About upgrades

An upgrade involves changing an existing subscription/installment payment to a larger, more expensive product. For example, you can offer your customers more comprehensive software than the one you have already sold to them. Or you offer your customers the option of switching from standard membership to premium membership.

An upgrade takes effect immediately. When you upgrade from an instalment (if the buyer cannot cancel) or one-time payment, the amount from the pre-order will be credited to the next order.

Ideally, you would offer your customers the opportunity to upgrade if you want to provide them with increased performance for an existing product.

If your customer only adds new options to an existing product and therefore the old subscription should remain, it would be better to use the member offer: For the member offer, the old subscription is not canceled, but rather another one is added to it.

Case study no. 1 for an upgrade – for a subscription:

  1. You have 3 subscription products:
    • Bronze for 30 € per month
    • Silver for 60 € per month
    • Gold for 90 € per month
  2. Your customer bought your bronze subscription for just 30 € per month on 1.9. On 20.9., you convinced them to upgrade to the gold product.
  3. The old subscription of 30 € is replaced by the new subscription of 90 €. The monthly billing date is on the 20th of the month from now on, not the 1st.
  4. The remaining 10 days for the month of September will be counted: In this case, 10 € will be charged. The customer therefore needs to pay 80 € (90 € minus 10 €) in order to upgrade on 20.9. They will pay the full 90 € from the next month onwards.

Case study no. 2 for an upgrade – for an installment:

  1. Your customer bought a product for 120 € and will pay it in 12 installments of 10 €.
  2. After 6 months (they have now paid 60 euros), your customer upgrades to a new product for a total of 240 €.
  3. The vendor sets the payment options for an upgrade product. Suppose there is also the option of installments here.
  4. Your customer selects a 12-month installment scheme. They have already paid 60 € for the previous product. This 60 € will be credited to the total price. Therefore they only have to pay 180 €.
  5. 180 € divided into 12 months works out at 15 € per month. They therefore pay 15 € per month.

The customer can only upgrade if they have already purchased one of your products. Otherwise, it is a new purchase, not an upgrade.

2. ​About downgrades

In contrast to the upgrade, a downgrade involves changing an existing product/installment to a cheaper product. The downgrade does not take effect immediately. This means that the customer is only downgraded at the next billing date when they will begin paying the lower price.

You always use downgrades if you want to “keep” a customer by offering them a lower performance if they do not need the superior and expensive service or no longer want to pay. Downgrades should not be used if the old subscription should be maintained and an option should be added to the existing subscription. In this case, only the member offer is appropriate.

Case study for a downgrade – for a subscription:

  1. You have 3 subscription products:
    • Bronze for 30 € per month
    • Silver for 60 € per month
    • Gold for 90 € per month
  2. Suppose your customer bought your silver subscription for 60 € per month on 1.9. and then on 15.9. informs you that they only want a bronze subscription.
  3. You send them the so-called “Upgrade link” for the downgrade offer from silver to bronze. Your customer activates the downgrade on 22.09.
  4. On the day of the downgrade (22.09), 1 € will be owed by the customer for the transition.
  5. The old subscription of 60 € will be replaced by the new subscription of 30 € on the next billing date (here it is 01.10).
  6. The monthly billing date is the 1st of the month. On 1.10., the customer will be charged 30 € instead of 60 €.

3. ​About member offers

Member offers are separately created product offers that only apply to existing customers. For a customer to be able to use a member offer, they must have already bought another product. You decide which product this is when you set up the member offer.

Member offers do not change existing orders. They are like an upgrade, where the original order continues.

Case study for a member offer:

You sell software with user access. Your software costs 100 € per month, includes user access and every additional user costs 20 € per month. When adding user access, the existing 100€ software subscription should not be canceled. This in then the classic application case for a member offer: You sell further access to an existing customer via the member offer, without interrupting the original subscription.

4. ​Create upgrades, downgrades, member offers

Before you start setting up, make sure that you have already set up the required products in advance.

How to get to the area where you can create upgrades, downgrades and member offers:

  1. In the vendor view, go to Account > Upgrades​.
  2. Click on the button Create upgrade.

Here you can always only create one upgrade, downgrade or member offer at a time.

Step-by-step guide: Set up upgrade

Step-by-step guide: Set up downgrade

Step-by-step guide: Create member offer

Updated on 17. October 2018

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