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Set up upgrades

Overview

Make sure that your customers use the latest iteration of your products, and that they're able to upgrade to newer versions. The Avangate upgrade functionality supports scenarios such as switching to a different subscription plan or to another version of the same product.

Requirements

  • The upgrade product has the renewal/recurring billing system enabled (subscriptions are generated): the upgradable products also need to have the renewal/recurring billing system switched on.
  • The upgrade product doesn't use subscriptions (the renewal/recurring billing system is not enabled): all products are valid upgrade options, whether subscriptions are generated for them or not.

Upgrade scenarios

A different product Product A to Product B
A different version of the current product Product A v1 to Product A v2
A different subscription plan Product A 1 user to Product A 3 users

Setting a product upgrade

  1. Select the products that are eligible.
  2. Set the pricing scheme and customize it.
  3. Set the subscription details for the upgrade.

Step 1: Configure upgrade products

Upgrades can be set up by configuring the Upgrade product.

  1. Navigate to Products, under Setup, and run a search to identify the upgrade product. Click to edit it, and then select the Upgrade tab.
  2. Choose the upgradable products from the list in the Edit your upgrade options area. Multiple selections are possible when holding down the CTRL key.

Yo can configure multiple products to upgrade to the same offering. 

The Available products area lists only items with subscriptions as valid options for upgrade products with subscriptions.

Step 2: Choose the pricing scheme

Choose the pricing scheme that you want to apply for the upgrade.

Pricing

In addition to defining the pricing strategy for the original and the upgrade products, the Avangate upgrade area offers additional controls impacting the costs customers incur during the upgrade process. Shoppers can pay:

  • Option 1. The full upgrade product price.
  • Option 2. The difference between original subscription and the upgrade product.
  • Option 3. A prorated upgrade price calculated using the most recent costs incurred by the customer (Upgrade costs can differ from product price as they reflect the most recent transaction made for the subscription and reflect the impact of discounts offered, custom charges, on-the-fly pricing, etc.).
  • Option 4. A prorated upgrade price calculated using the product's pricing setup at the time of the order (Upgrade costs are not impacted by previous discounts, custom charges, personalized pricing, etc.).

You can also customize the upgrade price by adding or subtracting a specific percent.

Prorated upgrade price

Avangate offers the option of upgrading an ongoing subscription anytime during its lifecycle, except for when it's expired or disabled/cancelled. Note: Expired subscriptions are still upgradable during the grace period, while they're status is Past due.

Using this feature together with Upgrade option will result in a successful calculation of a prorated price for any model. Avangate will calculate how many days the customer has left from the current subscription cycle and how much he needs to be charged extra.

Setup examples

1. Options selected:

Shopper will pay: The full upgrade product price

The upgrade does not affect the original subscription duration

or

Create a new subscription (disable the existing one)

or

Prolong the subscription from the upgrade purchase date

Product 1 price

Discounts or special pricing

Days used

Reference upgrade cost

Product 2

cost

$100 / 30 days

$10 or 10%

10

Irrelevant

$200 / 30 days

P1 to P2 upgrade price formula

The shopper will pay $200 for the upgrade, the full price of the upgrade product.

 

2. Options selected:

Shopper will pay: The difference between original subscription and the upgrade product

The upgrade does not affect the original subscription duration

or

Create a new subscription (disable the existing one)

or

Prolong the subscription from the upgrade purchase date

Product 1 price

Discounts or special pricing

Days used

Reference upgrade cost

Product 2

cost

$100 / 30 days

$10 or 10%

10

$100

$200 / 30 days

P1 to P2 upgrade price formula

The shopper will pay $100 for the upgrade, difference between the cost of Product 2 and the price of Product 1.

 

3. Options selected:

Shopper will pay: A prorated upgrade price calculated using the most recent costs incurred by the customer

Create a new subscription (disable the existing one)

or

Prolong the subscription from the upgrade purchase date

Product 1 price

Discounts or special pricing

Days used

Reference upgrade cost

Product 2

cost

$100 / 30 days

$10 or 10%

10

$90

$200 / 30 days

P1 to P2 upgrade price formula

Product 2 price - Reference costs for Product 1 * Lifetime left from Product 1 subscription/ Total lifetime of Product 1 subscription = $140

 

4. Options selected:

Shopper will pay: A prorated upgrade price calculated using the most recent costs incurred by the customer

The upgrade does not affect the original subscription duration

Product 1 price

Discounts or special pricing

Days used

Reference upgrade cost

Product 2

cost

$100 / 30 days

$10 or 10%

10

$90

$200 / 30 days

P1 to P2 upgrade price formula

Product 2 price - Reference costs for Product 1 * Lifetime left from the Product 1 subscription/ Total lifetime of Product 1 subscription - Product 2 price * (Total lifetime of Product 2 subscription - Lifetime left from the Product 1 subscription) / Total lifetime of Product 2 subscription = $73.4

 

5. Options selected:

Shopper will pay: A prorated upgrade price calculated using the product's pricing setup at the time of the order

Create a new subscription (disable the existing one)

or

Prolong the subscription from the upgrade purchase date

Product 1 price

Discounts or special pricing

Days used

Reference upgrade cost

Product 2

cost

$100 / 30 days

$10 or 10%

10

$90

$200 / 30 days

P1 to P2 upgrade price formula

Product 2 price -Product 1 price * Lifetime left from the Product 1 subscription / Total Lifetime of Product 1 subscription = $133.3

 

6. Options selected:

Shopper will pay: A prorated upgrade price calculated using the product's pricing setup at the time of the order

The upgrade does not affect the original subscription duration

Product 1 price

Discounts or special pricing

Days used

Reference upgrade cost

Product 2

cost

$100 / 30 days

$10 or 10%

10

$90

$200 / 30 days

P1 to P2 upgrade price formula

Product 2 price - Product 1 price * Lifetime left from the Product 1 subscription/ Total Lifetime of Product 1 subscription + Product 2 price * (Total lifetime of Product 2 subscription - Lifetime left from the Product 1 subscription) / Total lifetime of Product 2 subscription = $66.8

Customize your upgrade price

Available only for the following options:

  • Shopper will pay a prorated upgrade price calculated using the product's pricing setup at the time of the order
  • Shopper will pay a prorated upgrade price calculated using the most recent costs incurred by the customer

These options enable you to modify the actual upgrade price by adding or subtracting a specific percentage.

Subscription period option for the upgrade

When configuring an upgrade for a product with the renewal/recurring billing system enabled (for which subscriptions are generated), you'll also be able to configure how the upgrade process impacts existing subscriptions. Note: Options are not displayed for products with the subscription renewal system disabled.

Three options are available:

· Generate a new subscription for the upgrade product and disable the one created for the upgradable offering;

· Prolong the subscription of the upgradable offering, even though the customer will be using the upgrade product;

· The subscription duration of the upgrade product will not impact the subscription of the upgradable offering.

Using product catalog pricing

Enable the Use product catalog pricing option to ignore all custom upgrade prices set for a product, using instead its initial price, defined in the product catalog. Removing custom prices also disables any existing retention campaigns for the selected subscriptions.

Step 3: Subscription verification system

Optionally, you can enable the subscription verification system, directing shoppers to a generic product upgrade page and requiring them to provide the subscription activation key before they can see the available upgrade options. The subscription verification system only applies to subscriptions that require an activation code.

Zero value upgrades

When upgrading a subscription to one with a lower value, automatic renewal is kept regardless of the Collect Payment details for full discount or orders with 'zero' value option in Ordering options.