GTM Sauce

Tinder · B2C · dating app

Raise the price of the standalone feature so it stops stealing subscriptions

Fewer lost subscriptions, slightly lower conversion, higher total revenue

Workedpricing

What they did

After the standalone Passport cannibalized Plus, tested a higher a la carte price and measured conversion, subscription cannibalization and total revenue. Price amounts not given.

What happened

Cannibalization fell as expected, conversion dipped a little, total revenue went up

In their words

Dynamic Paywalls That Drove Millions in New Revenue – Shawn Gong, Tinder

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Shawn GongYes. Actually, I think it's so fun to talk about this because it was not launch and then success story, that's it. Not that simple. We learned a few things based on our test. First thing is when we launched this standalone a la carte Passport feature and then the conversion went crazy. It was great. However, we noticed like, oh, that hurts our Plus subscription because some user decided to only buy this feature not to buy subscription.

Shawn GongBut that can be a couple of things. So one is, oh, maybe we price too low, it's too affordable and then so it's like no-brainer, so user use it. The second thing we do is like, oh, we should increase the price for a la carte and to see how that will change the conversion and then subscription cannibalization. So we definitely noticed that the subscription cannibalization reduced as we expected, and then the conversion reduced a little bit, but total revenue actually went up. So that was very positive.

Shawn GongAnd then we continue to test because we wanted to minimize the subscription cannibalizations. And then we increase the price again and then also have upsell on the paywall. Basically we show, hey, David, you can buy Passport, standalone a la carte, but also you can buy Plus subscription. And then we use a very interesting kind of psychology thing. Basically for our seven-day Passport feature a la carte, the price is the same as seven day Plus …

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Tags: a-la-carte, price-increase, cannibalization