Mojo · B2C · social media video maker
Show only the yearly plan first; tuck monthly behind a 'view all plans' button
Yearly plan uptake up ~15-20 points; one of three tests behind a 60% ARPU lift
What they did
What happened
In their words
How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo
David Barnard… how Mojo increased average revenue per user 60% in five months, and I've been wanting to have you on since reading that blog post because there are so many little things in there I think people could take away from and not everybody's going to read the blog post. And it's fun to dig deeper into the things behind what ended up in the blog post, so let's start there. What are the things that led to that 60% increase in average revenue per user?
Michal ParizekThat was actually a bunch of experiments we did on mainly paywall and pricing, and they were particularly free experiments which stood out and brought that pretty good lift in ARPU. One of them was a yearly plan as a default. So initially on a paywall we've showed the yearly and monthly plan next to each other on the very first screen, very first of paywall screen. And then we've tried putting the monthly plan under a view all plans button so it wasn't really visible on the first glance, and that really helped drive our yearly plan adoption a lot. I think a 15 or 20 percentage point, so that helped a lot actually increasing the new revenue obviously.
David BarnardAnything else that was part of that, that you think really drove that success, or you think you just... A lot of people experiment with this, but for some people it does seem to work where it's like the yearly plan is listed with a monthly amount, and then the monthly plan is listed at a much higher amount. Did y'all test that at all of having the monthly plan maybe way higher to where it makes a yearly plan look even better, or what won in that?
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More from this episode
- Show the yearly plan as about $10 a month next to the $25 monthly planNew revenue +10% in the US and +30-40% in Brazil and Mexico
- Price below the US-equivalent in Brazil and Mexico instead of just converting currencyLower prices won; part of the 60% ARPU lift, no separate number
- Judge every paywall and price test on revenue per user in the first 7 daysChosen to shorten payback and fund more ad spend; worked well per guest
- Check 7-day cancellations before keeping a higher price that won on early revenueRejected a winning higher price after a yearlong model showed lost long-term revenue
- Retest each winning paywall in every key market before rolling it outSeveral winners shipped only in some markets; ARPU of new cohorts kept rising
- Use a long scrolling paywall with reviews and a free vs pro comparison in JapanNew revenue +20% in Japan; failed in the US, where a clean video paywall won
- Show free users a paywall when they open the app, at most once a week~15% of new revenue from existing users; no complaints in reviews or support
- Keep lots of features and content free on purposeOnly ~50% of payers convert on day one vs ~80% industry-wide
- Run separate paywall tests at once in US, Europe and Latin America every week or twoSignificant results in 1-2 weeks per bucket; enabled the 60% ARPU lift in five months
Tags: yearly-default, plan-visibility, ab-test