GTM Sauce

Zumba · dance fitness brand and app

Let people pick a plan in the app, then pay on a bare web page

Sign-ups fell 25% (35% at first) but lifetime value rose 17%

Workedpayments-checkoutpaywallexperimentation

What they did

A/B test, half of users each: in-app purchase only vs. web checkout only. Iteration 1: paywall button sent users to the web. Iteration 2: in-app paywall with package selection (monthly/annual, via RevenueCat) and a 'Start Today' button; the tap opens Safari to a stripped-down Stripe page showing only the chosen plan, styled like Apple's in-app purchase sheet, then auto-redirects back into the app. No extra discount for paying on the web, to protect LTV. Next ideas: let users choose web or in-app, and route only high-intent placements (e.g. after the welcome class) to web.

What happened

Initial conversion to trial/paid dropped ~35% in iteration 1 and ~25% in iteration 2, but better annual trial-to-paid, better retention and no app store fees gave a 17% LTV lift. CPA rises, so judge on LTV. Called one of their most successful tests.
Stage
~1 year after app launch
Effort
Two A/B test iterations, 50/50 split

In their words

Optimizing Funnels, Pricing, and Retention at Zumba — Nicole Page & Lucy Levy, Zumba

Play from 26:27
26:15

Lucy Levyuh we've done two iterations of of testing, and what we've seen is that there is definitely an initial drop in conversion, so we lose about 35% of the people converting either to a trial or a paid.

26:27

Lucy LevySo our pricing is we have annual at $99 with a seven-day trial, and we also have the $14.99 monthly price with no trial. So we've seen that that initial conversion, we saw a drop initially of about 35%.

26:40

Lucy LevyWith the second iteration, we managed to improve that to about 25% drop instead of 30 35%. But because conversion from trial to paid on the annuals is much better on web, we recoup some of that loss.

26:55

Lucy LevyAnd on top of that, obviously through web, we have much better retention, and the lifetime value therefore it's better, and we avoid the Apple Apple fees. So when we look at everything together, we see a 17% lift on lifetime value that more than offsets the drop in in the initial conversion.

27:14

Nicole PaigeWe use the RevenueCat tools to build this so that initially we tested, before the package selection feature was available with RevenueCat, we initially tested just letting people check out click the app paywall, go to the web, and we compared that against just the in-app paywall. And then once RevenueCat released

27:32

Nicole Paigethe package selection, we developed it so that users could actually choose which one they wanted, monthly or annually, which package, and once they chose that, we would send them to the web, and we gave them the most stripped-down

27:46

Nicole Paigeview on the web, where we just showed them what they selected. We tried to replicate how Apple has that view, has that window on the app when you do an in-app purchase, so that it looks very familiar, and that actually helped us with the conversion a lot, as Lucy mentioned.

27:59

David BarnardSo with the paywall, are you showing in-app and web, or are you showing only web, and then in these experiments, were you AB testing specifically one paywall that was only in-app purchase and one paywall that was only web? Or tell me what how you've been setting up those paywall tests more specifically.

30:51

David BarnardNice. Yeah, I I can see why that's increasing conversion. That's the next test we should probably do with the with the Dipsea paywall on the web.

30:59

Lucy LevyOne debate that we had internally was whether we give an extra incentive to get people to subscribe through web, but we decided to test it without it, because obviously we wanted the help on the on the lifetime value, so we didn't want to give that extra incentive. And and I don't know that people know so much the difference between, you know, with this seamless experience, I don't think there is a there is so much hesitation, and we're seeing it in the numbers, right?

31:20

Lucy LevyWe still have room for improvement in that initial conversion, but I think we've done we've done well. This is one of the most successful tests that we've had.

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Tags: ios, android, web, app-to-web, web-checkout, stripe, store-fees, ab-test, ltv