Reading.com · B2C · learn-to-read app for kids
Drop the free trial on the monthly plan to push people to annual
More annual picks, but realized LTV fell 17%; not rolled out
Failedpaywallpricingexperimentation
What they did
A/B test: control had monthly with a trial and annual (~50% off) with a trial; test cell had annual with a trial and monthly with no trial.
What happened
More users chose annual, but realized LTV dropped 17%; hesitant users would neither trial annual nor pay monthly upfront.
- Effort
- Full cohort A/B test measured on long-term LTV
In their words
Sub Club by RevenueCat · What Reading.com Learned Testing Prices and Funnels — Tim Dikun, Teaching.com“And so one cohort where they were getting monthly with a trial, annual with a trial, and then we were also, you know, monthly without a trial, trying to push people to more annual. And it did. We did see more people use the annual option.”
“It ended up with a 17% drop in realized LTV. And so that's something that we decided not to roll out to everyone.”
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