TalkingParents · B2C · co-parenting communication app
Double the price for current subscribers, but add a feature they asked for
Lost about a quarter of subscribers vs. half expected; some came back
Workedpricingfeature-development
What they did
Raised the subscription from $4.99 to $9.99/month for all subscribers, bundling Accountable Calling (phone calls recorded, transcribed and added to the court record) plus deeper discounts on printed records. Messaging: yes, prices are rising, but here are features you asked for. A free web version remained available for anyone who didn't want to pay. The team had planned for losing at least half.
What happened
A few complaints; lost maybe a quarter of subscribers, some of whom returned, at double the price.
In their words
Sub Club by RevenueCat · From Consultancy to $10M in ARR — Vince Mayfield, TalkingParents“And what we were pleasantly surprised is that we got a few complaints, but actually people understood that when we rolled it out, we added additional value.”
“And so every time we've raised prices, or every time we've busted out to tiers, we've made sure that we've bundled that with a group of value that somebody would get that the customers had asked for from us surveying them.”
“So turns out, we maybe lost a quarter or so, and maybe some of that was transitional where they were mad and then they came back”
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More from this episode
- TalkingParents: Stop relying on ads and courts; charge the parents who use the appBecame the base of a ~$10M ARR subscription business
- TalkingParents: Fly a co-founder around the country to pitch judges and court clerksAbout 60% of users are now ordered onto the app by a court
- TalkingParents: Keep the website free and charge a monthly fee for the mobile appsStarted at $4.99/month; founder now thinks it was priced too low
- TalkingParents: Ask customers what they'd pay for, then build those features into paid plansEvery price rise bundled features customers had asked for
- TalkingParents: Add a $24.99 plan with video calls and a set bundle of minutesAttracted less price-sensitive customers, mostly on iPhone; some couples both pay $24.99
- TalkingParents: Charge each co-parent separately, so one's video calls nudge the other to upgrade
- TalkingParents: Sell free users copies of their records for court, digital or printed and bound
- TalkingParents: Track each visitor from first site visit to paying, using your own dataFounder says it's 'paying dividends' after two years; no numbers
- TalkingParents: Host regular webinars with outside experts who also take over your social and blog
- TalkingParents: Reply to every app review with a real, caring answer, even off-topic rantsFounder says people feel heard and stay subscribed; no numbers
- TalkingParents: Swap a cheap startup transcription vendor for one that scales and bills per callCut transcription cost in half and gained features
- TalkingParents: Run your main calling feature on a small startup vendor instead of TwilioStartup couldn't scale; flagship feature broke and they moved to Twilio
- TalkingParents: Use your consulting firm's income to pay for building your own appTook ~6 years and ~$1M before subscriptions worked; lean times along the way