Downgrade Offers

A downgrade offer presents a lower-tier plan as an alternative to cancelling. The subscriber keeps their account at a reduced price, and you retain a customer who might otherwise be lost entirely. Even at a lower plan, a paying subscriber is significantly more valuable than a churned one.

Targeting Higher-Tier Users

Downgrade offers only make sense for subscribers on plans above your lowest tier. Configure your offer step with eligibility rules:

When configuring a downgrade offer step in the flow builder, set the Downgrade Plan to the target tier. LostChurn checks the subscriber's current plan at runtime and only presents the offer if a downgrade is possible.

If the subscriber is already on the lowest tier, the flow skips the downgrade step and moves to the next step (or the default offer).

Showing Plan Comparison

Subscribers are more likely to accept a downgrade when they can see exactly what they keep and what they lose. Configure the offer step to display a plan comparison table:

Example comparison (Command to Recovery):

Configure the comparison content in the offer step's config_json field. Include the features that matter most to highlight the value the subscriber retains at the lower tier.

Writing Effective Comparison Copy

• Lead with what the subscriber keeps, not what they lose
• Highlight the price difference prominently
• Use specific numbers ("Save $150/mo") rather than vague statements
• If the subscriber rarely uses features exclusive to their current plan, call that out

Automatic Plan Switching

When a subscriber accepts a downgrade offer:

1. LostChurn records the accepted offer on the cancel flow session
2. A discount redemption record is created with the downgrade_plan value
3. The plan change is applied through your payment processor (e.g., Stripe subscription update)
4. The subscriber sees a confirmation and their plan updates immediately

The switch happens at the end of the current billing period by default. No prorated charges or credits are generated unless you configure your payment processor to handle mid-cycle changes differently.

Revenue Impact Tracking

Downgrades reduce MRR, but they prevent a complete loss. LostChurn tracks the net impact:

View these metrics in the saves dashboard under the downgrade breakdown.

Evaluating Downgrade ROI

A downgrade offer is worth it when the net revenue impact is positive — meaning the MRR you retain exceeds what you would have lost to full cancellation. Since most subscribers who reach the cancel flow would otherwise churn, the comparison is straightforward:

• Without downgrade offer: $0/mo (subscriber cancels)
• With downgrade offer (accepted): Lower-tier price/mo
• Net gain: The full lower-tier price

Over time, track the re-upgrade rate. Subscribers who downgrade and later upgrade represent the highest-value outcome of this strategy.

Creating a Downgrade Offer

1. In the flow builder, add an Offer step
2. Select Downgrade as the offer type
3. Configure the settings:
   • Downgrade plan — The target plan tier
   • Headline — The message shown (e.g., "How about a plan that fits better?")
   • Description — Explain the benefits of the lower plan
   • Plan comparison — Enable and configure the feature comparison table
   • CTA text — The accept button label (e.g., "Switch to Recovery Plan")
4. Set the Trigger Reason to connect this offer to a specific survey response (e.g., "Too expensive" or "Missing features I need")
5. Save the step

Next Steps

• Discount Offers — Offer a price reduction on the current plan
• Pause Offers — Let subscribers take a break instead
• Measuring Saves — Compare downgrade performance against other offer types