Mosaic Group · B2C · app portfolio company
Raise prices about 10%; retention usually drops only a couple of percent
Net LTV wins most of the time across the portfolio, if conversion holds
Workedpricing
What they did
Across Mosaic apps, price increases lowered retention less than one-to-one: roughly a 10% price rise cost a couple percent of retention, so LTV usually rose if conversion held. Sensitivity differs by product; apps with a thin layer of value have a lower price ceiling than deep-content products like language learning.
What happened
Retention down a couple percent per +10% price; net LTV gains most of the time.
In their words
Sub Club by RevenueCat · Why Most Apps Hit a Revenue Ceiling (and How to Plan for It) — Patrick Falzon, The App Shop“It is definitely not a one-to-one relationship, meaning you're going to net get LTV wins most of the time assuming conversion rates line up.”
“So, we typically see if you increase price 10%, maybe retention comes down by a couple percent, for example.”
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