unsexy conf 2013: richard white, uservoice

Pricing for Conversion: The data behind subscription behavior

Richard WhiteCEO, UserVoice

@rrwhite

Limited Life Experience+

Overgeneralization=

Advice

Paul BucheitCreator of Gmail, Co-founder of FriendFeed

Customer feedback & helpdesk platform

Offices in San Francisco & Raleigh, NC

140,000+ UserVoice sites online

Designed for SaaS, Gaming & MobileTens of millions of end-users182 people/sec see our product

Lots of data :)

When we last left our heroes...

If you missed last years talk check it out on 500.co

@rrwhite

free shit

Helpdesk Launched May 2011

TimelineDevelopment started June 2010

Private BetaDec 2011

Public BetaMar 2011

Full LaunchMay 2011

Pricing Starting May 2011

Pricing Starting May 2011 70%

17%

Pricing Starting May 2011

Goal: Maximize helpdesk usage$5 price point chosen to pre-qualify users.But represented a barrier to people using the product.

••

70%

17%

Pricing Starting Feb 2012

Action: Move to $5 to FreeRevenue risk was okay - those plans represented < 2% of total MRRA/B tests indicated that Free would cannibalize other paid plans

••

20%

69%

Pricing Starting Feb 2012 70%

17%

30% TRIALSIGNUPS

Pricing Starting Feb 2012

7% PAID TRIALSIGNUPS

Pricing Starting Feb 2012

34% TRIALCONVERSIONSwithin 30 days of signup

Pricing Starting Feb 2012

∆ ACTIVE ACCOUNTSafter 90 days

Pricing Starting Feb 2012

197%

∆ ACTIVE ACCOUNTSafter 90 days

205% ∆ ACTIVEACCOUNTSafter 9 months

Pricing Starting Feb 2012

197%

∆ ACTIVE ACCOUNTSafter 90 days

205% ∆ ACTIVEACCOUNTSafter 9 months

TRIALCONVERSIONSLTV +2%; MRR -4%

Pricing Starting Feb 2012

197%

1%

@rrwhite

weekendbilling

Weekend Billing

Weekend Billing

55% BILLING FAILURERECOVERIESversus weekdaysTRIAL EXPIRATION RECOVERIESversus weekdays22%

Weekend Billing Is bad for your health

34% BILLING FAILURERECOVERIES*

TRIAL EXPIRATIONRECOVERIES

22%

Weekend Billing Is bad for your health

34% BILLING FAILURERECOVERIES*

TRIAL EXPIRATIONRECOVERIES

23% BILLINGFAILURES

22%

Weekend Billing Is bad for your health

34% BILLING FAILURERECOVERIES*

TRIAL EXPIRATIONRECOVERIES

23% BILLINGFAILURES

* Only 6% improvement when you look at 60-day billing failure reactivations

(29% recovery vs 73% reactivation)

22%

@rrwhite

downgradereasons

Downgrade Reasons

Downgrade Reasons

54% PROVIDED A REASON when it was optional

Downgrade Reasons Require them and follow-up

66% MORERESPONSES

Downgrade Reasons Require them and follow-up

66% MORERESPONSES

RESPONDED TO77%

Downgrade Reasons Require them and follow-up

66% MORERESPONSES

RESPONDED TO

14% ∆ DOWNGRADEREACTIVATIONS

77%

@rrwhite

satisfactionsurveys

Satisfaction Surveys via email

Satisfaction Surveys via email

46%

RESPOND25% for uniques

OPENRATE19%

Satisfaction Surveys via email

49%ANSWER

Satisfaction Surveys via email

49%

WE REPLY TO

ANSWER

61%

Satisfaction Surveys via email

49%

WE REPLY TO

ANSWER

61%

40%REPLYBACK

Satisfaction Surveys via email

48%ANSWER

Satisfaction Surveys via email

48%ANSWER

Satisfaction Surveys via email

48%

TWEET

ANSWER

8%

Satisfaction Surveys via email

48%

TWEET

ANSWER

8%

5X∆ TWEETS

NEW

Satisfaction Surveys

Higher response rates than traditional email surveys through

proactive, in-app prompts.

Easily track trends and correlate positive or negative responses

with specific product areas or user traits.

Get ahead of customer churn - poor ratings from customers get

turned into support tickets enabling quick follow-up from your

customer team.

@rrwhite

moar pricing

Pricing Starting Feb 2012

Pricing Starting Feb 2012

Goal: Simplify product & pricing3 products and 12 total price points is a lot to digest.Most free accounts now used both products. Didn’t want to penalize usage.

••

Pricing Starting Feb 2012

Action: Create a single product w/ 4 plansDetermine what the new price points should be.Assess conversion and risk to existing MRR.

••

Pricing Starting Feb 2012

$92AVERAGE $45 $18Process: Price points

Look at the average per seat rates (including discounts) across all products•

Pricing It’s science, bitch!

Process: Price pointsLook at the average per seat rates (including discounts) across all productsBring in PriceIntelligently to survey existing & churned customers + market panels

••

Pricing Are you down with IPP?

Process: Price pointsLook at the average per seat rates (including discounts) across all productsBring in PriceIntelligently to survey existing & churned customers + market panels

••

$16 IPP - CUSTOMERSFree, Paid, Churned

IPP - MARKETPANELSSaaS & Software companies

$21

$18 CURRENTAVERAGEAcross existing customers

Process: Price points & featuresLook at the average per seat rates (including discounts) across all productsBring in PriceIntelligently to survey existing & churned customers + market panelsSet monthly and annual price points to straddle IPP

•••

Pricing Starting Feb 2014

Pricing Starting Feb 2014

Process: Risk assessmentWe’d lose 5% of MRR with the new pricing models.A/B tests were relatively inconclusive about the effect price points

would have on funnel

••

Pricing Starting Feb 2013

Pricing Starting Feb 2013

18%AVG SAVINGSVaried by plan

7X

Pricing Starting Feb 2013

22%ANNUALSdouble normal rate

CASHFLOWMRR lost vs annuals

Pricing Starting Feb 2013

2%TWEETED

28%

Pricing Starting Feb 2014

8%30%TRIALS

∆ TRIAL SIGNUPS

Pricing Starting Feb 2012

10%

∆ TRIAL SIGNUPS

10% ∆ CONVERSIONS

Pricing Starting Feb 2012

10%

∆ TRIAL SIGNUPS

10% ∆ CONVERSIONS

Pricing Starting Feb 2012

10%

2012 Q2 - worst qtr of 2012 REVENUE CHURNNet for existing customers

∆ TRIAL SIGNUPS

10% ∆ CONVERSIONS

Pricing Starting Feb 2012

10%

2012 Q2 - worst qtr of 20122013 Q2 - best qtr ever

REVENUE CHURNNet for existing customers

danke

@rrwhite

Thank youAny (easy) questions? :)

Richard White@rrwhite

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