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
What they did
What happened
In their words
How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo
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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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
- 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
- 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: paywall-campaign, existing-users, app-open-trigger, frequency-cap