GTM Sauce

BoldVoice · B2C · accent coaching app

Remove the close button so users must start a trial to continue

Trial starts rose, but refunds rose by more; net loss

Failedpaywallexperimentation

What they did

A/B tested a hard paywall at the end of onboarding: removed the X/dismiss button so people had to start the 7-day trial to proceed. Evaluated on matured net revenue after refunds.

What happened

Trial-start rate looked very promising, but refunds spiked by more than the gain in trial starts; not rolled out.
Stage
growth
Effort
A/B test run long enough for refund data to mature

In their words

Why BoldVoice Charged From Day 1 and Ignored the Duolingo Freemium Playbook — Anada Lakra

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Anada Lakra… to be able to action it. And the idea of just sitting there on something that could be really promising for an extra month, depending on X number of months, depending on how much ... Again, users you need to validate and get to statistical significance. That part is hard of just sitting on that and being patient. And it also means you can't iterate as fast, you can implement those learnings as fast. So I get it and I was that impatient person.

Anada LakraI'll give you two examples actually. When it comes to the paywall, we tested a hard paywall, where we basically removed the X dismiss button. So people had to start a trial in order to proceed. And then we also tested a version, where there was still a dismiss button on the main paywall, but then if you dismissed it, we gave people an offer of X percent off that they could not X out of. So they would have to start a trial. If they hadn't started at the baseline price, they would have to start it at the lower price. Again, it's a trial, it's not a payment, so they still can't cancel it.

Anada LakraBut both of those look so promising on the trial numbers and it makes sense. People have already put in all that time in the onboarding flow. They actually want to see what this app is all about. And we're like, "Great. This is great. Why are we sitting on this? Why shouldn't just we put this in front of everyone?" And the answer came down to the refunds and the refunds spiked by way more than the gain in STAR trials. And again, it took us a while to get to that data, but once the data came in, I think it was very clear that that was not the right thing to do.

Anada LakraAgain, I feel like I've been a broken record already about this, but I think my takeaway from this is that just the mechanical clever things don't actually work and you'll pay the price for those things. And the only thing that actually works is ... Once you have something that generally makes sense when it comes to the paywalls, just work on the product.

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Tags: hard-paywall, refunds, ab-test