Decide if a price increase is worth the churn risk
More revenue per customer and more customers overall pull in opposite directions, and a price increase bets on the first at the expense of the second.
- Use it for
- Anyone considering a price increase on an existing product who wants to think through the tradeoff honestly.
A price increase trades higher revenue per remaining customer against the risk of losing some customers entirely, but that tradeoff often gets evaluated on gut feeling about how customers will react rather than the actual math of how much churn the increase could absorb before it becomes net-negative. This prompt runs that math and checks it against what's actually known about customer price sensitivity.
When not to use this
If you have direct, recent evidence from customers about their price sensitivity for this specific change, that evidence should drive the decision more than this general framework.
Did this work?
You have a specific estimate of the churn rate that would make this increase net-negative, and an honest read on whether that's a realistic risk given what you know about your customers.
Tested on claude-opus-5. Evidence status is draft; it moves to battle-tested only on recorded runs, never by hand.