Mojo · B2C · social media video maker
Show the yearly plan as about $10 a month next to the $25 monthly plan
New revenue +10% in the US and +30-40% in Brazil and Mexico
What they did
What happened
In their words
How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo
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?
Michal ParizekYeah, yeah, we experiment with that as well. Yeah, so what we've tried and succeeded was actually a monthly plan incurring, so we essentially added a small line next to our yearly plan, which says that's the price is equivalent of, I don't know, $10 a month. And that actually worked very well in comparison into that monthly plan, which was obviously higher. The price was 25, let's say, dollars. So that showed a yearly plan is such a good deal comparing in the costs. So that actually, that worked very well and interesting, well, that actually worked very well, particularly in Latin America, in Brazil and Mexico.
David BarnardThat's super [inaudible 00:03:46]. Why do you think it performed better in Latin American countries than the US?
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More from this episode
- Show only the yearly plan first; tuck monthly behind a 'view all plans' buttonYearly plan uptake up ~15-20 points; one of three tests behind a 60% ARPU lift
- 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: price-anchoring, monthly-equivalent, yearly-plan, latam