uDocz · B2C · study notes app for students
Survey what students would pay, then drop the Pro tier and cut the yearly price
+12% subscriber conversion, +10% net subscription revenue, better margins
Workedpricing
What they did
Starting point: two tiers (Lite, Pro) each with monthly and annual plans; Pro's extra value was licensed publisher ebooks. Instead of A/B testing prices first, run a Van Westendorp survey (at what price is it too expensive, getting expensive, a bargain, too cheap to trust) to get the optimal price range, cut by tier; then a conjoint survey where each user makes 5-10 choices between 2-4 packages of attributes to get marginal willingness to pay per feature. Findings: little extra willingness to pay for Pro over Lite or for annual over monthly, and publisher ebooks had among the lowest willingness to pay. Action: collapse to one tier (Udocz Plus), drop the licensed ebooks, and lower the annual price. Guest's rule: early consumer apps should offer one plan (annual only, or monthly + annual).
What happened
Subscriber conversion +12% and net subscription revenue +10%; removing publisher licensing costs also improved margins and LTV/CAC.
In their words
Sub Club by RevenueCat · The Subscription Value Loop: A Formula for Growth – Phil Carter, Elemental Growth“we saw that the marginal willingness to pay for the Pro plan was very, very small relative to the Lite plan.”
“what the company ended up doing was streamlining down to a single tier, just getting rid of the Pro tier and only having what they now call Udocz Plus, and then lowering their annual price.”
“this ended up driving a 12% increase in subscriber conversion and a 10% increase in net subscription revenue.”
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