I just want to say thank you to Alex Turnbull for writing about all the things they've learned at Groove. It's incredibly helpful and insightful to read.
The Pricing Model That Increased Our Free Trial Signups by 358%
11–20 of 39 posts
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#12I'm sorry if I am not seeing this clearly, but did you change the pricing model? All I am seeing between Test #2 and Test #3 (the succesful one) is that you drop from $150 to $15. The $150 was the Unlimited Plan, and now you have all that for $15. All I see is price lowering instead a diff price model. I apologize if I am wrong.
Yeah sounds like everything they do is lowered the price.
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#13This doesn't sound like the complete set of metrics that should be measured. Surely, the key thing is how much money each model made? What is the average revenue per user in either case for those users converted? Later on the average lifetime value of a user in each model is needed (plus the cost to get and convert them). Yes, conversion is part of the equation, but this feels like a vanity metric on its own. Just so…
Just looking at this for one of the first times (new to this part of the game), it seems like this is a step-by-step progression from 'we have users!' to 'users are paying!' If I were working my way forward yours would absolutely be my next question, along with figuring how to target the 20% of customers that drive 80% of my revenue.
Do you think that it would be better to have the revenue model fully thought out (through to revenue/user and lifetime value) before a/b testing the pricing models?
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#14I'm confused. Your customers wanted to pay per ticket, but you wound up going back to the industry-standard of paying per agent. What gives?
As he said in the post, what a customer asks for and what a customer actually wants can be very different (and by wants he means what they will actually act on). Apparently they didn't act on paying per ticket but they DID act on a single no hassle price.
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#15I'm confused. Your customers wanted to pay per ticket, but you wound up going back to the industry-standard of paying per agent. What gives?
You are not alone in your confusion :/
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#16If anyone from Groove is reading these comments, your log in page looks like this on latest Chrome OS X: https://www.dropbox.com/s/u7s0mqhu8172bpf/Screenshot%202013-...
ouch, that's no good :( Fixing that asap....Thanks for the heads up!
in chrome inspector, deleting the fake-placeholder nodes makes it look okay. maybe just change their styling to display:none?
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#17I'm confused. Your customers wanted to pay per ticket, but you wound up going back to the industry-standard of paying per agent. What gives?
I started something around the same as Groove and I was told that our users only want to pay per ticket. After doing an AB test, it was clear that a small amount of people actually wanted this option but they were quite vocal about it.
My guess is that is what gives.
To add to this, even when we had implemented this for users, they were our worst customer by far.
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#18I'm confused. Your customers wanted to pay per ticket, but you wound up going back to the industry-standard of paying per agent. What gives?
As he said in the post, what a customer asks for and what a customer actually wants can be very different (and by wants he means what they will actually act on). Apparently they didn't act on paying per ticket but they DID act on a single no hassle price.
Exactly.
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#19This doesn't sound like the complete set of metrics that should be measured. Surely, the key thing is how much money each model made? What is the average revenue per user in either case for those users converted? Later on the average lifetime value of a user in each model is needed (plus the cost to get and convert them). Yes, conversion is part of the equation, but this feels like a vanity metric on its own. Just so…
Just looking at this for one of the first times (new to this part of the game), it seems like this is a step-by-step progression from 'we have users!' to 'users are paying!' If I were working my way forward yours would absolutely be my next question, along with figuring how to target the 20% of customers that drive 80% of my revenue. Do you think that it would be better to have the revenue model fully thought out (th…
There really is no such thing as "fully thought out" here w.r.t what the customers will actually do with it. If you look again at the article, they went through this kind of progression:
- Best guess at a starting price model
- Revisited price model after poor test performance. Did research, revamped model based on research
- Revisited price model after poor test performance. Simplified plan to match the philosophy of business. Performance greatly improved
It's about testing the ideas, not keeping them in your head. What you think works and what actually works are often counterintuitively different.
Re: The Pricing Model That Increased Our Free Trial Signups by 358%
#20 easy to use
easy to buy