The team at ReadMe has always had a self-described “love-hate relationship” with their lowest tier $14/mo Documentation plan.
The reason?** Folks on the lower tier plan had very different needs than the other plans**, creating distraction and a split in focus. But the most pressing problem: ballooning support costs that failed to payoff.
The Baremetrics Compare Plans feature drove home the need to make a change. The $14/mo. Documentation plan represented just 7% of revenue, but a whopping 31% of support requests. And because the needs of users on this plan were incompatible with those on higher plans, this loss leader wasn’t leading to significant conversions to the higher value plans.
So they axed the Documentation plan for new signups, and waited to see what would happen.
In short, the outcome was better than anyone could have ever imagined. Revenue Churn decreased from 5.4% to 2.5%.