Calm · B2C · meditation and sleep app
Play rain sounds the moment the app opens, and in 15-second ads
What they did
In their words
How Tinder Captures More Value With Tiered Pricing and Consumables — Ravi Mehta
David Barnard… find a way to manufacture these aha moments, this confidence, this excitement for the product so that they get to that paywall at a state where they're willing to start that free trial to then actually get to experience the product. And so for a freemium product, maybe being able to get to that aha moment quicker and then have the confidence that you're going to monetize them in the long run once they've had that experience is one way to think
Ravi MehtaAbout it. And then you could create value for people before they've monetized. I think comms a really good example. As soon as you open that app, you start to hear rain sounds right, and so their promises were going to make you more calm, and they do that before you've done anything on intake. In fact, even their commercials do that. They have those calm commercials where they just did a timer of 15 seconds of rain sounds, and so they're delivering the value that the product promises from the very first touchpoint with the product. And if you're doing that during the onboarding, if you're creating value for people, you're onboarding could be as long as you want. It can be 90 screens long, as long as you are creating the value promise for the user that they want to get from your app, and then at that point they're ready, they're happy to pay, like it's already creating a lot for me. If on the other hand, your onboarding is, it's like a IRS form, it's like name, rank, serial number, and you're just asking for information, it's not even really clear why you need the information. At some point a person is going …
David BarnardOne of the things you talk a lot about are frameworks and mental models. Why? What's the value in frameworks and mental models and how do you even define those?
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More from this episode
- Offer three subscription levels and sell extra boosts on topFormer CPO calls it one of the best ways to price consumer apps; no revenue split given
- Keep dating free for most users so there are plenty of people to match85-90% never pay; the 10-15% who do fund the business
- Interview users spending $100-250 a month, then build a top plan for themLed to Tinder Platinum; no results shared
- Test many prices for each plan and add-on, country by countryHundreds of price SKUs live at once; no test results shared
- Sell a paid 'super like' that stands out from a normal likeSuper Likes are 3x more likely to get a match
- Let people start swiping in two minutes using Facebook login and photosOnboarding cut from ~20 minutes to under 2; brought younger people into online dating
- Replace a 3-screen checkout with a 20-question intake before paymentConversion up (host says 40%); 99%+ of people answer each next question
- Sort hotels by each traveler's past behavior without calling it 'just for you'Unlabelled version converted better; labelling it 'just for you' dropped conversion
- Show ads to free users to cover their costSmall share of revenue; ads worth far less than a subscriber
- Start at $20-30 a month; if nobody pays, fix the product, not the price
- Give a short free trial that builds a daily habit, then chargeGuest converted without hesitation; a free-tier rival he uses daily never got paid
- Sell live classes, Zoom sessions and week-long intensives to your most engaged usersRevenue almost doubled; live offers now half of revenue
- Set quarterly goals as a short why, 3-5 commitments, and a task listGuest says teams that adopted it found it works better than OKRs; no numbers
Tags: value-first, time-to-value, tv-ads