Yousician · B2C · music learning app
Use monthly-plan renewals to set a warning threshold for yearly-plan test winners
What they did
In their words
Stop Celebrating Conversion Wins Before Checking Renewals – Sara Grana, Yousician
Sara Grana… 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 you have the majority of users buying a 12-month subscription, so you won't see it until later on. But maybe there's something that you can do if you see that the one month behaving in a particular way, maybe you can assume that the same would happen for the 12 months.
Sara GranaYou can also look when you have the result, make some scenarios of renewal rates of those different... If the one month was to renew at this 10% less or 5% more, whatever you want based on the result of your test, what would happen. And then you can know once you have some really easy way to check in a way, in a sense. You keep an eye, okay, if this goes below 10, then I know we are in trouble. I know that probably the winner is actually the loser.
David BarnardAnd this gets back to what we started with was keeping a detailed history. Is that when you do run an experiment, do you set an alarm like three months from now?
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More from this episode
- Chart revenue from new, upgrading, renewing and returning subscribers, then explain each spikeSurfaces which past decisions moved revenue, e.g. a lifetime plan launch; no numbers
- Set calendar reminders to recheck price tests at 3 and 6 monthsCatches price 'wins' that flip once renewals come in; no numbers
- Before calling a paywall test, wait two weeks and check refunds and chargebacksRefunds show up fast and can erase a paywall win; no numbers
- Send an offer to people who turn off auto-renewLooked great, but users refunded first and then took the offer; net negative
- Judge a new lifetime plan against what a subscriber pays over timeTests otherwise wrongly crown lifetime, e.g. 250 vs 100 instead of 250 vs 300 euros
- Split renewal rates by plan, discount, and web vs app before reading themWeb buyers renew much better, so blended renewals rise from mix shift alone
Tags: renewal-scenarios, annual-plan, tripwire