Mojo · B2C · social media video maker
Check 7-day cancellations before keeping a higher price that won on early revenue
Rejected a winning higher price after a yearlong model showed lost long-term revenue
Workedpricingexperimentation
What they did
For price tests, tracked the 7-day cancellation rate as a proxy for renewal rate. When a higher price won on new revenue, modeled a year of revenue at that price using the proxy; the higher price's cancellation rate was far above baseline, so kept the original price.
What happened
Avoided a price change that would have lost long-term revenue; kept baseline price.
In their words
Sub Club by RevenueCat · How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo“we use typically seven-day cancellation rate as a proxy for retention rate or for renewal rate, what it could look like.”
“Seven-day cancellation rate just was way higher than for the baseline price. So then we decided not to do that and kept the original price”
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More from Mojo
All 11 Mojo tacticsMore from this episode
- Mojo: Show only the yearly plan first; tuck monthly behind a 'view all plans' buttonYearly plan uptake up ~15-20 points; one of three tests behind a 60% ARPU lift
- Mojo: Show the yearly plan as about $10 a month next to the $25 monthly planNew revenue +10% in the US and +30-40% in Brazil and Mexico
- Mojo: Price below the US-equivalent in Brazil and Mexico instead of just converting currencyLower prices won; part of the 60% ARPU lift, no separate number
- Mojo: Judge every paywall and price test on revenue per user in the first 7 daysChosen to shorten payback and fund more ad spend; worked well per guest
- Mojo: Retest each winning paywall in every key market before rolling it outSeveral winners shipped only in some markets; ARPU of new cohorts kept rising
- Mojo: Use a long scrolling paywall with reviews and a free vs pro comparison in JapanNew revenue +20% in Japan; failed in the US, where a clean video paywall won
- Mojo: Show free users a paywall when they open the app, at most once a week~15% of new revenue from existing users; no complaints in reviews or support
- Mojo: Keep lots of features and content free on purposeOnly ~50% of payers convert on day one vs ~80% industry-wide
- Mojo: Run separate paywall tests at once in US, Europe and Latin America every week or twoSignificant results in 1-2 weeks per bucket; enabled the 60% ARPU lift in five months