What is a down-sell? Simply put, it’s the reduction of their marketing package by removing one or more deliverables from their monthly recurring revenue (MRR). A down-sell should be the resort option for retaining a customer’s relationship.
Strategies to Combat Down-Selling
If a customer requests the removal of a product, it’s important to consider alternative options to maintain the customer’s current MRR.
1. Collaborative With Internal Team Members
- Loop in the appropriate Team Lead about the customer’s down-sell request
- Collaborate with internal teams (CSM, MM, SEO, SEO Content, PPC, etc.) to confirm if removing the product in question. Pull relevant customer data to support the reasoning for retaining this service.
- If the service is not providing results, devise a plan to course-correct the customer’s concerns.
- Follow up with a joint call with the Team Lead and CSM to present the appropriate data supporting the current product is providing the intended value.
2. Review the Customer’s Agreement
- Review the agreement to confirm eligibility for a reduction of services.
- For example, a customer within the first 9 months of their integrated marketing agreement is not eligible to reduce their MRR.
- Eligible customers who are affected by a natural disaster or financial concerns may pause a specific marketing service.
- If pausing is expressed, each month of the pause will extend their agreement and must be captured in writing with a clear plan for the expected month to resume billing.
- For example, if a customer pauses marketing for 6 months, their agreement will extend by 6 months to ensure all deliverables are met when their hardship has been lifted.
- If pausing is expressed, each month of the pause will extend their agreement and must be captured in writing with a clear plan for the expected month to resume billing.
3. Consider the customer’s Needs
- Bring the data to the call with the Team Lead. Whether the story tells a good or bad narrative, present the findings for keeping the service.
- Actively listen to the customer concerns.
- Understand their perspective and reason for down-selling on a product.
4. Get Creative With Deliverables
- If the data does not support a positive narrative, it may be an opportunity to repurpose this marketing service with another applicable service or need.
- For example, if PPC is not a profitable service but social media may be an opportunity to grow their business, consider swapping the services for this on
5. What if that’s the only option
- Focus on the customer’s relationship.
- If down-selling remains the most viable option, honoring a reduction of services (long-term or temporarily) provides a brand loyalty opportunity.
- Continue providing the best level of customer service and expectations to retain the overall relationship and build their trust with Q4Launch.
- Upsell the same product again in the future.
- When a customer removes a marketing service, a performance gap will likely follow – whether that’s traffic, site behavior, eCommerce.
- Wait 2-3 months (dependent on service) and rely on the account MM to articulate the decrease during that month’s report.