pricing for conversion - data on saas strategies at uservoice - unsexy 2012
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Richard WhiteFounder, CEO
Pricing for Conversion: The data behind purchasing behavior
Limited Life Experience+
Overgeneralization=
Advice
Paul BucheitCreator of Gmail, Co-founder of FriendFeed
Customer feedback & helpdesk platform
Offices in San Francisco & Raleigh, NC
100,000+ UserVoice sites online
Designed for SaaS, Gaming & Mobile
Tens of millions of end-users
182 people/sec see our product
Lots of data :)
the startACT I
Feedback Launched May 2008
TimelineDevelopment started Oct 2007Private BetaDec 2007Public BetaMay 2008
Feedback Launched May 2008
TimelineDevelopment started Oct 2007Private BetaDec 2007Public BetaMay 2008
FREEAS IN BETA
Public Beta Completely Free
39% ACCOUNT GROWTH(month over month)
01750
3500
5250
7000
April May June July August September October November
39% ACCOUNT GROWTH(month over month)Public Beta Completely Free
get paidACT II
50% ACCOUNT GROWTH(month over month)
Freemium Adding paid plans
50% ACCOUNT GROWTH(month over month)Plan MSRP
Free -
Silver $289 / mo
Gold $589 / mo
Simply by announcing new paid plans
50% ACCOUNT GROWTH(month over month)200% ACTIVE ACCOUNTS
Freemium Adding paid plans
50% ACCOUNT GROWTH(month over month)200% ACTIVE ACCOUNTS
= 0% ACTIVE ACCOUNTS
Freemium Adding paid plans
50% ACCOUNT GROWTH(month over month)200% ACTIVE ACCOUNTS
Freemium Adding paid plans
What we lost by announcing paid plans were the worst leads we had coming in. There was no net difference in active accounts.
01750
3500
5250
7000
April May June July August September October November
39% ACCOUNT GROWTH(month over month)Beta accounts converted to paid at less than 1/4 the rate of post-beta accounts.
Freemium Adding paid plans
Freemium Adding paid plans
Launched with 5 plans differentiated by design, customization & integration capabilities.
Freemium Adding paid plans
Plan MSRP % Rev
Free - -
Tin $19 / mo 17%
Bronze $89 / mo 42%Silver $289 / mo 5%
Gold $589 / mo 35%
Freemium Adding paid plans
13%52%
17% LTV(vs non-discounted accounts)17% ACCOUNTS RETAINED(vs non-discounted accounts)
ACCOUNTS DISCOUNTED
AVERAGE DISCOUNT
Discounts Successful
Usage limits failed to drive upgrades.
Upgrades actually increased by 33% when the limits were removed.
Usage limits Failure
No measurable impact on conversion rate or trial signups.
30DAY FREE TRIAL
15DAY FREE TRIAL
Changing Trial Length Failure*
Not requiring a credit card to sign up for a paid trial had no effect on conversions or trial signups.
Dont Require CCs Failure*
the modelACT III
Helpdesk Launched May 2011
TimelineDevelopment started June 2010Private BetaDec 2011Public BetaMar 2011Full LaunchMay 2011
Pricing Original
Pricing based on feature sets. Very few upgrades because of large gaps between price points
Pricing Starting May 2011
Kept same feature differentiation but switched to pricing per seat. Makes higher end feature sets more accessible Revenue scales up with customer usage. More upgrade options
Results Switch to per seat model
22% DOWNGRADES
242% UPGRADES
26% ACCOUNTS(at 14 months post signup)Switching to a per seat model (from a flat monthly rate) had a big impact without eroding ARPC.
Discounts Things that worked
LTV(vs non-discounted accounts)
ACCOUNTS RETAINED(vs non-discounted accounts)
ACCOUNTS DISCOUNTED
AVERAGE DISCOUNT
14%31%
3%
24%
13%52%
17%
17%
LEGACY PER SEAT
Trial Extensions Things that worked
Accounts that extend their trial are...
... 2.5X more likely to convert.
... 5X more likely to upgrade.
Reactivations Things that worked
On payment failures, prompt account admins to decide whether to reactivate to their previous plan or switch to free.
50% ACCOUNT REACTIVATIONS(churned accounts returning)
Annual Billing Things that worked
A great, simple way to boost cash flow.
9% PREPAID ANNUALLY
Unknowns Things that *may* have worked
Some changes need more data to definitively know whether they worked...
Migrating $5 plans to FreeHave a free offering of every product. Revenue loss was minimal.
Dont run billing on the weekendsPayment failures happen during the business week when people are around to recover from them.
Next Reduce the number of plans
Thank youAny (easy) questions? :)
Richard White@rrwhite
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