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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.