Practitioner pattern · Sara Grana (Yousician, Babbel)
Judge a new lifetime plan against what a subscriber pays over time
Tests otherwise wrongly crown lifetime, e.g. 250 vs 100 instead of 250 vs 300 euros
Unknownpricingexperimentation
What they did
When testing a new plan such as lifetime against a subscription, compare the lifetime price to the expected lifetime value of the subscription (e.g. 300 euros over its life, not the 100 euro first payment), because lifetime front-loads value and otherwise always wins.
In their words
Sub Club by RevenueCat · Stop Celebrating Conversion Wins Before Checking Renewals – Sara Grana, Yousician“And then every time time you do a test like lifetime versus something else, always the something else is going to lose because people are not looking at what is the LTV of that something else.”
Related topics
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More from this episode
- Babbel: Chart revenue from new, upgrading, renewing and returning subscribers, then explain each spikeSurfaces which past decisions moved revenue, e.g. a lifetime plan launch; no numbers
- Yousician: Set calendar reminders to recheck price tests at 3 and 6 monthsCatches price 'wins' that flip once renewals come in; no numbers
- Yousician: Before calling a paywall test, wait two weeks and check refunds and chargebacksRefunds show up fast and can erase a paywall win; no numbers
- Send an offer to people who turn off auto-renewLooked great, but users refunded first and then took the offer; net negative
- Split renewal rates by plan, discount, and web vs app before reading themWeb buyers renew much better, so blended renewals rise from mix shift alone
- Yousician: Use monthly-plan renewals to set a warning threshold for yearly-plan test winners