Actual user trend data useful in establishing price strategy for paid services Data and its trajectory

ByThefixer

SaaSA company that provides market feedback system by Mark Saldana who is doing business onlineUserVoiceCEO of Richard White's UserVoice pricing strategy and data on it,500 StartupsIt is open to the public. The data published by UserVoice is quite helpful for pricing strategies when offering paid services online.

The Data Behind Purchasing Behavior at UserVoice - Pricing for Conversion (Part I) | 500 Startups
http://500.co/2013/07/18/the-data-behind-purchasing-behavior-at-uservoice-pricing-for-conversion-part-i/

With UserVoice, which was implementing a completely free trial for the first 10 months since the service was launched, the growth rate of product registrants recorded + 39% month-on-month, showing a steady start.


However, as soon as the company announced a toll plan with a monthly charge of 589 dollars (approx. 59,000 yen) for Silver members and 289 dollars (about 29,000 yen) for Silver members, the growth rate of product registrants declined to 50% of the previous month I will excuse you.


The decline in the growth rate of product registrants sent dangerous signals, but after 30 days the number of active accounts has doubled. Saldana says that by announcing a pay plan at a relatively early stage after the start of the free trial service, it is possible to discover users who really need the service, and it will have the effect of driving away those who are not cool.


UserVoice started as a paid plan with two types of Gold members: 589 dollars a month (about 59,000 yen), Silver member monthly amount of 289 dollars (about 29,000 yen), but feedback that wants a less expensive paid plan Many received it.


UserVoice added Bronze members monthly charge of 89 dollars (about 8900 yen) · Tin member monthly amount of 19 dollars (about 1900 yen) in response to the voice of the user who wants a low price paid plan. A total of five plans, including free members, means that the functions that can be used are very different.


Gold and Bronze members account for 77% of the total revenue, while Silver members located between the two plans are only 5% of the total revenue. Actually, many functions are not attached even when compared to Bronze members Silver members are responsible for directing users to Bronze members from the members of the Bronze skip over Silver which does not change so much and lead them to Gold members with many functions There is that.


UserVoice carries a discount service to support many young customers who are customers, and 13% of all customers receive an average 52% discount from the regular price. Who receives the discount?An LTV that represents the profit to the company throughout the trading periodIs 17% lower than that of non-discounted customers, but the account duration rate is 17% higher. Discount services do not impair LTV much over long periods,Conversion rateAlthough it is a convenient method to increase, it is said that if a discount service is carried out excessively, the price strategy may have a big influence.


When UserVoice set usage restrictions for users who can expect feedback, there was little effect on plan upgrades. On the contrary, when I canceled the usage restrictions, the plan upgrade increased by 33%. It seems that you can not expect to promote the upgrade of the user's plan even if restricting usage to the plan.


In addition, I changed the 15-day free trial to 30 days, but it did not result in increasing the number of registrants of conversion rate and trial.


When UserVoice said that it is not necessary to register a credit card for a free trial much later after the paid service started, the conversion rate was hardly affected. The advantage of eliminating the need to register a credit card is still valid for incorporating customers who do not know much about the content of the service so it may have had a positive impact on the conversion rate if introduced earlier. It is said that it is not.