Split renewal rates by plan, discount, and web vs app before reading them

Sara Grana… say most of the time, but a lot of the time, the commercial strategy that you have, what people buy, when they buy it, which price they buy it, are going to have such an enormous impact on your renewals and extensions. And what happens is that people, like in the marketing side, they don't really see in the [inaudible 00:10:53] and then the product side, they also don't have a view on what is happening at the beginning of the funnel in a way.

Sara GranaFor example, something that I think is going to happen right now is we have now the web checkout, right? In iOS, you can send people to buy one. What I've seen in different companies is the web renewal rates are significantly higher than the app rate. So what is going to happen now is a lot of teams, a lot of product teams are going be like, "Wow, our product is amazing. We have increased our renewals by whatever, 20%." If they were to slice from what is the cohort of users that bought natively in app, what is the cohort of users that bought through web, maybe the renewal rates are flat and what just happened is you are acquiring users through other means. The same can be said, of course, for the subscription plans. If you have your share of users that buy one-month subscription is bigger or grows for whatever reason, your renewals are also going to get better if you look at the overall number.

Sara GranaSo think when you're looking at data like cohort of the different users, what they bought, when they bought it, if discounted or not discounted is also another clear example. Sometimes you do the discount, you bring a lot of revenue, but then those users, they are not going to renew. Or sometimes you do a price increase, you bring more revenue because your conversion goes down, but not as much as the pricing list goes up. But then those users, …

David BarnardSo what are the specific metrics and ways you dive into the data to better understand that? Are you looking at both subscription, retention, and usage retention of very specific features? How are you watching that entire funnel? What's your preferred way to look at it and what are the metrics you most look at?

Sara GranaSo what is most important to me is which plan did they buy, discounted or not, and where? Web versus app. Then sometimes, and this is something that you need to look for your company, sometimes the marketing channel might make up for different users and cohorts. So understand what are the different one. And once you have that, then you just look at that. You just look at that cohort. And then if you see that the cohort is going up or down, okay, probably [inaudible 00:13:14]. What usually happens is that the share for those different cohorts is changing over time. And this is what bringing you fluctuation on renewal rates. It might be different when you're doing a specific experiment, that might change that, but I think it's really always good to look at what are those things and make a …

Sara GranaAnd then when it comes to when I'm looking at a test that I do in the paywall one, then I'm looking at revenue per user of course, but then I'm also having a look always on pre-funds or chargeback. So I always wait a couple of weeks what is happening there because that's like an immediate effect that you can see. And then always after some months, recheck the cohort. What has happened with these people? Sometimes it's a bit frustrating because …