Why Customers Stay After You Take Away Their Discount

Episode 61 of Customer Retention with Fexingo explores a counterintuitive retention strategy: deliberately removing discounts from loyal customers. Lucas and Luna examine the case of a B2B software company that ended legacy pricing tiers for its longest-tenured accounts, expecting mass defection—only to see churn actually drop. We walk through the psychology of price anchoring and the 'endowment effect' in subscription pricing, using data from a 2025 study on SaaS pricing changes. The hosts discuss why some customers value a product more when they pay full price, and how removing a discount can signal confidence in the offering. This episode offers actionable insight for marketers and product leaders wrestling with pricing strategy—without resorting to the obvious play of grandfathering or discounting forever. A rare look at how subtraction can strengthen customer relationships. #CustomerRetention #ChurnReduction #PricingStrategy #SaaS #DiscountRemoval #EndowmentEffect #PriceAnchoring #B2BMarketing #CustomerPsychology #LegacyPricing #ProductLedGrowth #ValuePerception #Marketing #Business #FexingoBusiness #BusinessPodcast #LucasAndLuna #RetentionStrategy Keep every episode free: buymeacoffee.com/fexingo