Mojo · B2C · social media video maker
Price below the US-equivalent in Brazil and Mexico instead of just converting currency
Lower prices won; part of the 60% ARPU lift, no separate number
What they did
What happened
In their words
How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo
David BarnardHad you already experimented with lower prices in those countries or was it a similar equivalent price to us prices?
Michal ParizekNo, we did actually. It was under another key experiment which drove the 60% increase in ARPU that we did a lot of price testing as well. And what some of those actually include, also Latin America countries like typically Brazil and Mexico, which were the top two geos on that region. And so we've actually lowered the price so we didn't have the equivalent of the US prices. That's something what I think usually App Store suggests. They basically just do the exchange rate, right? And then calculate, say, "No, no, we didn't..." Well, we originally had that I think in the past, but, and then we also tested a bit lower prices and it turned out it was actually better.
David BarnardWhat was a key metric you were tracking during this? In setting up all these experiments, you're testing price, you're testing paywall layout, you're testing placements, do you have the monthly and annual? You're testing all these things. What was the unifying metric you were looking at to determine the success of those experiments?
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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
- 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
- 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: app-store, regional-pricing, price-test, latam