Raise the yearly plan from $39 to $79, not the $99 tests favored

Mark Ungerer… And also, we're likely leaving value on the table because of how important and critical this device is versus our historical reference of frame. And this is a very Skylight specific thing, but to move fast, the initial Calendar subscription and Frame subscription was literally the same subscription, same skew, same price point, turned it on for both devices. The customer didn't know that, but if they bought another one, it would've worked.

Mark UngererAnd so, it was just sort of like, hey, we're at 39. And then we started thinking, well, if we were going to do this as a new company and we were just going to make Calendar, what would we price the subscription at? We actually just run a bunch of tests. And this is classic, I'm sure folks in the audience have all done this. But we ran a bunch of different variants and we variated both the price of the subscription, as well as the discount on the hardware. So, that's another pro-tip for the hardware folks out there is the relationship between those two changes, the conversion in hardware and the attached to software. And so, you're having margin changes on how many units you sell, what's margin per unit and how many subscriptions you sell. And so, we did a bunch of tests on that and we landed at 79.

Mark Ungerer… spreadsheet. It was a little bit better. It wasn't massively better and so it was like, why don't we do that? And it was like, I don't know, it just felt like overreaching. We were doubling our price. We want good vibes to continue. We can always go up. And so, we landed at 79 as sort of a middle ground, where we felt pretty confident going to that change that it was going to work, because of that testing and it's been phenomenally successful.

Michael SegalThere's so much qualitative surveying and conversations happening throughout all of this. So, if there are any folks listening who are not constantly talking to customers, either in surveys or ideally also face-to-face, one-on-one, focus groups, you will see it. You'll see it very quickly when you meet with people. And we knew 99 on paper penciled a little bit better, but that was getting into closer to that disgust or it's not worth it yet territory. We will revisit that as we stuff more and more valuable stuff in there. I don't think it's there yet. But my point is commercial for doing lots and lots of research and talking to customers yourselves, you'll just very clearly see what the market wants.

Michael SegalAnd then of course, you do some quant testing and variance, because sometimes people say things and they do completely different things, so you have to do both. But smart people by doing both, can I tend to think triangulate to the right answer. The biggest mistake I would say people make out there is not doing the qual and just saying the numbers are going to be what the numbers are.

David Barnard… going to get this price again. So, somebody out there is going to run this test and I'll get them on the podcast. And we'll figure out how well it works or doesn't work. All right. I did want to wrap up with the three questions I now ask every guest. And one or both of you can chime in on these bonus. Start with what's the biggest win of the last year and experiments you did, change you implemented? What was the biggest win of the last year?

Michael SegalIt has to be the plus subscription, going from 39 to 79, with minimal loss of retention or attach. I mean the ARR curve, you can see it. It just was transformative to the business. Mark led the entirety of that start to finish. To me, I mean there's many, many wins, but even it's coincidental that we're on a subscription podcast. I would've said it even if we weren't on a subscription podcast, that was huge, huge win.

Mark UngererI'll throw in dollars much less, but in percents a big win, was changing our checkout flow back to the Apple thing. We used to have on our device, if somebody was not subscribing and they scanned a QR code, it would lead to a web-based checkout. We flipped that to Apple and we saw over 100% increase in conversion. Now, the number of people that were doing that was smaller. So, again, it wasn't like the two X factor of the price that affected …