GTM Sauce

Mojo · B2C · social media video maker

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

Workedpaywallupsell-expansion

What they did

Ran a paywall campaign for existing free users triggered on app open, with frequency capped at one paywall per week however often they open the app. Alternative trigger suggested: after a key engagement event (e.g. sharing). Checked support and did a thorough App Store review analysis for complaints. Works alongside a generous free tier.

What happened

Drove about 15% of new revenue from the existing user base; support and review analysis found no complaints about it.

In their words

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

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Michal Parizek… maybe some other apps. There's lots of features which is actually available in the free tier, lots of content. So that's one thing. So the, let's say, generosity of the free tier and just intentional. The other aspect is that we've run also the paywall campaigns for existing users, which I think not a lot of, maybe not most of the apps actually do, and think it's actually one of the underrated things, which I think most of the apps should do it.

Michal ParizekSo essentially it's running the paywall campaign, so as you're triggering the paywall and certain behavior for existing users, either as an app open, like we did in Mojo, or after some key behavior event, like when you do something key in your app, like, I don't know, sharing something or whatever the key engagement event is. So that paywall campaign actually drove, I think, about 15% of new revenue from the existing user base, which is just pretty a lot and it's super simple to set up. And it wasn't really having any negative reviews on that from the users. So it's a no-brainer to have that.

David BarnardYeah, that's surprising. So free users, they open the app and immediately see a paywall.

David BarnardDid you check, churn and other things? I guess that's the thing is you do always trade off, so maybe there was a little bit of churn, but then the additional revenue made up for that. But any other things you track? You said there were no negative reviews, which that's shocking to me. People seem to go out of their way to complain about things like that in the App Store reviews, but support retention, any downsides to this paywall on app open?

Michal ParizekIt was on app open, but it was, I think the frequency is set to one paywall per week. So you don't actually, even if you open the API every day, and multiple times a day, you just essentially have that paywall only being triggered [inaudible 00:15:36] once a week. Essentially that frequency was pretty low, which also I think played some role why users learned complaining, but I ask, specifically actually ask a colleague from support and he didn't really mention that user complaining. I did once a quite thorough analysis of all the reviews and tried to find what users complain about, not really from that particular reason, but I was more interested what user like, what I didn't like, and I actually haven't really seen any specific negative about having paywall a lot of times …

David BarnardIt's surprising sometimes when people are getting something for free, they tolerate more than we assume sometimes. I know a lot of games and even some regular apps have full screen interstitial ads. Duolingo's actually a great example of this. They do it very tastefully, but they have a full screen, unskippable takeover ad after a lesson. So I think people do intuitively get the exchange of value there of, oh, I'm using this completely for free. …

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Tags: paywall-campaign, existing-users, app-open-trigger, frequency-cap