Does having a cheap entry-level plan actually increase customer churn?

We initially added a low cost $10 tier to capture price-sensitive users who were on the fence. Instead of creating a pipeline of future upgrades, we ended up with high support ticket volume and a 60% cancellation rate within the first two months.

Once we eliminated that budget tier and focused exclusively on a single value aligned plan, our retention numbers stabilized almost immediately.

Curious about your pricing experiments did dropping your lowest tier help you attract better fit customers, or did it cut off your top-of-funnel?