GTM Sauce

Reading.com · B2C · learn-to-read app for kids

Test monthly prices from $4.99 to $19.99 and keep checking LTV for years

$12.49 won (vs $6.99 launch); still winning after multi-year look-backs

Workedpricingexperimentation

What they did

Launched at $6.99/month without much research. As soon as RevenueCat Experiments came out, tested many monthly prices from $4.99 up to $19.99. $12.49 had the highest LTV lift; $14.99 was slightly higher but they chose $12.49 to keep reach broad because parent-to-parent word of mouth matters in kids apps. Ran look-backs over multiple years: some higher prices gave an early LTV boost that did not hold.

What happened

$12.49 became the base price for ~2 years and still wins in multi-year look-backs; higher prices' early LTV gains faded.
Stage
Launch (early after launch)
Effort
Many price cells; monitored for multiple years
16:51
“And so we experimented with a ton of different numbers.”
Tim Dikun
17:16
“And what we found was that $12.49, interestingly, had the the highest LTV lifts. I think $14.99 had a slightly higher LTV, but it was really early on in our journey, and so we really were were conscious of balancing the reach.”
Tim Dikun
18:22
“$12.49 is still winning after, you know, multiple years of of looking back.”
Tim Dikun

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