{"id":202464,"date":"2021-03-15T13:04:45","date_gmt":"2021-03-15T10:04:45","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/when-should-you-kill-a-product-4-lessons-from-gitlabs-change\/"},"modified":"2021-03-15T13:04:45","modified_gmt":"2021-03-15T10:04:45","slug":"when-should-you-kill-a-product-4-lessons-from-gitlabs-change","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/when-should-you-kill-a-product-4-lessons-from-gitlabs-change\/","title":{"rendered":"#When should you kill a product? 4 lessons from GitLab&#8217;s change"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bd72f9133d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bd72f9133d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/when-should-you-kill-a-product-4-lessons-from-gitlabs-change\/#1_Be_generous_in_your_transition_offer_to_help_bridge_change\" >1. Be generous in your transition offer to help bridge change<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/when-should-you-kill-a-product-4-lessons-from-gitlabs-change\/#2_Avoid_pushing_upsells\" >2. Avoid pushing upsells<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/when-should-you-kill-a-product-4-lessons-from-gitlabs-change\/#3_Listen_to_your_customers\" >3. Listen to your customers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/when-should-you-kill-a-product-4-lessons-from-gitlabs-change\/#4_Move_towards_pricing_simplicity_not_away_from_it\" >4. Move towards pricing simplicity, not away from it<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#When should you kill a product? 4 lessons from GitLab&#8217;s change<\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2021\/03\/gitlab-logo-gq-796x417.png\" \/><\/p>\n<div>\n                                <span>How do you know when it\u2019s time to kill a product? It\u2019s certainly not a decision to take lightly.<\/span><\/p>\n<p><span>In 2011, <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.entrepreneur.com\/article\/250218\"><span>Netflix<\/span><\/a><span> tried to steer customers away from mailed DVDs and dropped a 60% price increase in the midst of a recession. That year, the company lost 800,000 customers, its stock price tanked almost 80%, and their management team got turned into a <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/www.huffingtonpost.com\/2011\/10\/02\/snl-netflix-apology_n_991084.html\"><span>Saturday Night Live sketch<\/span><\/a><span>.\u00a0<\/span><br \/>\n<iframe loading=\"lazy\" title=\"Netflix Apology - Saturday Night Live\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/0eAXW-zkGlM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><br \/>\n<span>Let\u2019s use Netflix\u2019s move as an example of what <em>not<\/em> to do. But what <em>should<\/em> we do then?<\/span><\/p>\n<p><span>A decade after the Netflix debacle comes an excellent example of smart product editing from GitLab, a hugely popular developer platform that is growing like crazy. <\/span><\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/about.gitlab.com\/\"><span>GitLab<\/span><\/a><span> fascinates me with their <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/about.gitlab.com\/handbook\/\"><span>extreme transparency<\/span><\/a><span>, even as they <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/about.gitlab.com\/handbook\/being-a-public-company\/\"><span>prepare to go public<\/span><\/a><span>.<\/span><span> But what they\u2019re doing on the product side interests me even more \u2014 and should serve as a case study for the rest of us.\u00a0<\/span><\/p>\n<p><span>Here\u2019s what I think their secret boils down to: l<\/span>ess is more.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.subscribed.com\/read\/reports-and-benchmarks\/benchmark-product-catalog-optimization\"><span>Research<\/span><\/a><span> from the Subscribed Institute in collaboration with McKinsey &amp; Company backs this claim up: revenues of higher-growth companies are typically concentrated in a more highly curated set of products.\u00a0<\/span><\/p>\n<p><span>Earlier this year, GitLab got rid of a paid starter offering, trimming its product catalog from four sub<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ion tiers to three: Free, Premium, and Ultimate.\u00a0<\/span><\/p>\n<p><span>Why? I suspected it was because too many of their subscribers were housed in the starter tier, causing a customer\/product mismatch that was costing GitLab money. So I reached out to Xiaohe Li, principal pricing manager at GitLab and he was kind enough to get back to me.\u00a0<\/span><\/p>\n<p><span>My suspicions were confirmed. Here\u2019s what Xiaohe told me: <\/span><\/p>\n<blockquote><p><i><span>The Starter\/Bronze tier was originally designed for a single team and did not have enterprise readiness features or support. However, we had some larger customers on the tier who weren\u2019t seeing the value that they really needed. One of our more sophisticated customers told me directly that everyone should get on Premium at minimum.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>It was a smart move. Sure, the bronze plan only costs subscribers $4 a month, but that\u2019s exactly the point. If you want to run a successful subscription business, you should be putting real resources and investments into <\/span><i><span>all<\/span><\/i><span> of your offerings, not just some of them. As the old saying goes: feed it or kill it.\u00a0<\/span><\/p>\n<p><span>But how GitLab went about making the pricing change is where the masterclass starts. Here are four key lessons that I took away from their decision, and you should too:<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_Be_generous_in_your_transition_offer_to_help_bridge_change\"><\/span><b>1. Be generous in your transition offer to help bridge change<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>Not only can GitLab customers on the canceled plan choose to remain on the same tier until the end of their subscription period, but they can also renew at the current price for one additional year or upgrade at a significant discount.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Avoid_pushing_upsells\"><\/span><b>2. Avoid pushing upsells<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>GitLab actually encouraged users of the canceled plan to investigate their free plan! This is a much better way of converting paid customers because it asks users to actually re-evaluate how they use the product, rather than just making a blind pitch to pay more.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Listen_to_your_customers\"><\/span><b>3. Listen to your customers<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>As they explained in <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=gqA4IgHKfb4\"><span>this excellent video<\/span><\/a><span>, GitLab solicited lots of feedback (on a confidential basis) from customers and internal team members alike before the launch. GitLab then invited its customers to offer feedback in a <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forum.gitlab.com\/t\/new-gitlab-product-subscription-model\/45923\"><span>special section<\/span><\/a><span> of their community forum on launch day.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Move_towards_pricing_simplicity_not_away_from_it\"><\/span><b>4. Move towards pricing simplicity, not away from it<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>GitLab\u2019s <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/about.gitlab.com\/pricing\/\"><span>new pricing page<\/span><\/a><span> is simple, intuitive, and does an excellent job of communicating value.<\/span><\/p>\n<p><span>And all of this brings me back to my original argument: <\/span>less is more.<\/p>\n<p class=\"c-post-pubDate\">\n                                    Published March 15, 2021 \u2014 10:04 UTC<\/p><\/div>\n<p><script data-src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&amp;appId=378011798897423&amp;version=v2.6\" id=\"socialSrcFacebook\" type=\"text\/template\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/growth-quarters\/2021\/03\/15\/kill-saas-product-gitlab-subscription\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#When should you kill a product? 4 lessons from GitLab&#8217;s change&#8221; How do you know when it\u2019s time to kill a product? It\u2019s certainly not a decision to take lightly. In 2011, Netflix tried to steer customers away from mailed DVDs and dropped a 60% price increase in the midst of a recession. That year,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":202465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/growth-quarters?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2021\/03\/gitlab-logo-gq.png&signature=526a4143a2861fe177473c70c8f4c337","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-202464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/202464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=202464"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/202464\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/202465"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=202464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=202464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=202464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}