GTM Sauce

Lose It! · B2C · weight loss app

Keep the free version good enough to reach the goal without paying

Retention very stable after doubling the price, per guest

Workedretentionpricing

What they did

Free product has always been a full freemium experience (free-only 2008-2012); users can do everything needed to lose weight for free, and the team keeps investing in it. Premium is 'just that much better' for more motivated users.

What happened

Retention 'very stable' despite fewer new premium users at the higher price.

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 7:19

David Bernard… able to look at retention. One of the things about increasing price is that in RevenueCat's data that we share in the report, we do see higher retention at lower prices. Now, that's not always going to be the case. You know, sometimes higher-priced products do retain better, but just in general, we do see that in the data. And so I do think that's something a lot of apps do face. And so have you found retention to uh at least break even as well?

7:19

Patrick RillsYeah, I'd say our our retention is very stable. And I think that's because, even though we are getting less new premium users because of the higher price, our free product is amazing. Since the beginning, we actually operated from 2008 to 2012 without a paid product. So our product has always been a freemium model, and our free product has always been very useful to people. Uh we invest a lot in it. We make sure that the free product is a great experience. The premium product is just that much better. Uh I think, you know, if people are more more motivated, they can get the premium features, and that helps them out a lot. But you can do everything you need to do to lose weight in the free product, and we're very proud of that.

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?

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Tags: freemium, free-tier