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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

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What they did

Instead of the App Store's default exchange-rate conversion of US prices, ran price tests in the top LatAm markets (Brazil, Mexico) with lower local prices.

What happened

Lower prices turned out better; counted among the experiments behind the 60% ARPU increase.

In their words

How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo

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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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Tags: app-store, regional-pricing, price-test, latam