Mojo · B2C · social media video maker
Keep lots of features and content free on purpose
Only ~50% of payers convert on day one vs ~80% industry-wide
What they did
What happened
In their words
How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo
Michal Parizek… it's a very good signal for the app that it can actually drive a good revenue also from existing users. It's likely have a good retention and essentially a lot of existing users and it's, sounds to me like a really very healthy behavior and signal. There's a, I think, couple of things, I think why Mojo has 50%. One is that the free tier is actually, I think it's pretty good also comparing also some other competitors actually in the free tier.
Michal ParizekIt can actually, it can do quite a lot. So it's not that restricted, like 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 …
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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
- 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
- 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: freemium, generous-free-tier