Headspace · meditation and mental health app
Add a family plan so members keep each other using the app
Best retention of any plan, monthly and annual; brought in new users and raised ARPU
Workedpricingretention
What they did
Launched a family plan on the hypothesis that shared use (family, roommates) creates accountability that makes people less likely to cancel. Surveyed and matched accounts to see whether buyers were new to Headspace.
What happened
Family plan had the best retention on both monthly and annual; it brought in net-new users (or long-time free users) and lifted annual revenue and ARPU.
- Stage
- scale
In their words
Sub Club by RevenueCat · How Headspace Optimized Revenue by Gating Content — Shreya Oswal and Keya Patel, Headspace“we had a hypothesis that the family plan would help with accountability and retention of folks.”
“And we did ultimately find that, during my time there, that the family plan was the best in terms of retention both on the monthly side and the annual side, somewhat pointing towards that hypothesis.”
Related topics
Get tactics like this every Monday
New tactics from the week's founder interviews, each linked to where it was said.
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- Ask the user's main goal and show different content for each
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More from this episode
- Headspace: Lock 90-99% of the free library, keeping 1-2 favorites free per categoryMuch higher free-to-paid conversion; far fewer complaints than feared
- Headspace: Lock the whole content library behind a free trial, for new and old usersHigh double-digit lift in paid subscribers; trial users engaged more than free users
- Headspace: Let anyone share a 30-60 second clip of any meditation with a friend
- Headspace: Raise monthly from $9.99 to $12.99 and cut annual from $99 to $69.99More total revenue and higher conversion on both plans; more users chose annual
- Headspace: Show the yearly plan's per-month cost, with a cartoon character pointing at itHelped shift sign-ups toward annual alongside the price change; no separate numbers
- Headspace: Test 8 lower monthly prices to pull in less committed usersLost revenue: more people chose monthly without enough extra conversions; not rolled out
- Headspace: Label the yearly plan 'best value' instead of showing the dollars savedThe simple 'best value' label beat showing the dollar savings
- Headspace: Push the yearly plan hardest on the paywall, keeping monthly as an optionMore picked annual, but fewer paid after the trial; went back to equal plans
- Headspace: Add a free trial: 7 days on monthly, 14 days on yearlyDouble-digit conversion lift; rolled out end of 2019
- LinkedIn: Open free trials to everyone and let users pick their own planCalled a big win for revenue and for users picking the right plan; no numbers
- Headspace: Offer a student discount plan, then open it in the 7-10 countries asking mostSmall but positive revenue at first; international launch 'done really well'
- Headspace: Let new users pick several reasons they came, not just oneSignificant lift: fewer drop-offs at that question and more trial starts
- Headspace: Test a 10-15 screen onboarding against a 3-4 screen one straight to the upsellLong raised week-1 use but cut conversions; short converted but felt off-mission; settled in middle
- Headspace: Promise a prize for sticking with it the first month, with on-track reminders
- Headspace: Give referred friends a 30-day free trial instead of 14, with no cash rewardHigh trial redemption and good conversion from referred friends; no numbers
- Headspace: Reward the top referrers with a 1:1 session with their favorite teacher