GTM Sauce

Lose It! · B2C · weight loss app

Build in-app sales timed to each user's journey, with deeper discounts off a higher price

Higher base allows 25-75% discounts to more users; no conversion numbers

Workedpricingpaywall

What they did

Homegrown lifecycle sale system built into the app and refined over years: how much discount a user gets depends on where they are in their journey. The $80 base leaves room for steep 25%, 50%, 75% discounts that $40 couldn't support; bigger percentage off usually converts better even when the dollar price ends up higher.

What happened

Guest says the higher base lets them offer more discounts to more users and capture more of the demand curve; no figures.

This shipped together with other changes, so the result can't be credited to this alone.

In their words

The Hidden Cost of Underpricing Your Subscription – Patrick Rills, Lose It!

Play from 8:28
8:07

David BernardYou've talked about a couple of things being huge unlocks for raising the price, you know, being able to tolerate higher CAC. You've talked about the AI features where, you know, the incremental cost of serving these users is getting higher as you increase the cost of servicing some of these features. What other unlocks have you seen from being able to raise the price?

8:28

Patrick RillsYeah, over the years we've built quite a life cycle sale mechanism. And it's a homegrown system that we built into the app and refined over years and years. So how much of a discount a user gets at a certain point in their journey is completely built into the experience. And the higher price point allows us to offer more discounts to more users, and try to get more area under the curve there. Because from 0 to 40, there's not as much room to do, you know, 50, 25%, 75% discounts, but at $80, we can do more steep discounting. And everyone knows about the sale psychology, you know, the bigger the percent, usually the higher the conversion, even in absolute dollars, you know, the price is higher.

9:23

David BernardHow did the product team react to the increase in price? Cuz I know there can sometimes be a tension between kind of the the revenue monetization optimization from like the the product people maybe have a more kind of purity mindset of like, "Oh, you know, like we want to make it a good deal for the users," and stuff.

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Tags: lifecycle-sales, discounts, sale-psychology