Skip to main content
A downgrade, is the switch to a lower-priced option, including:
  1. Switching to a lower tier.
  2. Switching to a shorter commitment.
  3. Reducing the unit quantity (e.g. reducing seats).
  4. Removing an add-on.
  5. Reducing the quantity of a specific add-on.
In SaaS there are 2 common best-practices:
  1. Downgrade immediately and grant a prorated amount of credits for the remaining time of the billing period, like Slack, or Notion.
  2. Schedule a downgrade to take place at the end of the current billing period, like Zoom, Trello, or GitHub.
Allowing customers to downgrade immediately and granting them a prorated amount credits they can redeem in the upcoming invoice may be perceived better by your customers. Slack calls it ‘fair billing’. However, this option is much less favorable to your business as this is a loss in revenue. Every product in Stigg can be configured to follow either of these behaviors. By default, products in Stigg are configured to downgrade immediately. To change this behavior, edit the Customer Journey configuration of the relevant product.

​
How plan downgrades are determined

When a customer switches from one plan to another, Stigg determines whether the transition is a downgrade using the following priority order:
  1. Plan inheritance — If the customer’s current plan inherits from the target plan, the transition is a downgrade.
  2. Price comparison — If there’s no inheritance relationship between the plans:
    • Both paid plans: the transition is a downgrade if the target plan has a lower starting price.
    • Both custom-priced plans: the downgrade direction is determined by the order of plans in the pricing table.
    • Both free plans: the transition is considered neither an upgrade nor a downgrade.
This determination affects:
  • The isUpgrade and isDowngrade fields in webhooks such as subscription.created and subscription.updated
  • The SubscribeIntentionType.UPGRADE_PLAN and SubscribeIntentionType.DOWNGRADE_PLAN intent types in the pricing table widget
  • Whether a plan change follows the immediate or scheduled downgrade behavior configured for the product