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unSEXY Conf 2013: Richard White, UserVoice
The document summarizes the results of various pricing experiments conducted by UserVoice, a customer feedback and helpdesk platform company, to optimize pricing and increase usage of their product. Some key findings include: switching from a $5 paid plan to a free plan increased trial signups by 30% and active accounts by 197% after 90 days; requiring reasons for downgrades increased responses by 66% and reduced downgrades by 14%; in-app satisfaction surveys had a higher response rate than email surveys and led to 5x more tweets. The company also simplified their pricing structure and adjusted price points based on customer surveys, which increased annual plans by 22% and reduced quarterly revenue churn.
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unSEXY Conf 2013: Richard White, UserVoice
- 1. Pricing for Conversion: Thedata behind subscription behavior Richard White CEO, UserVoice @rrwhite
- 2. Limited Life Experience + Overgeneralization = Advice PaulBucheit Creator of Gmail, Co-founder of FriendFeed
- 3. Customer feedback &helpdesk platform Offices in San Francisco & Raleigh, NC 140,000+ UserVoice sites online Designed for SaaS, Gaming & Mobile Tens of millions of end-users 182 people/sec see our product Lots of data :)
- 4. When we lastleft our heroes... If you missed last years talk check it out on 500.co
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- 6. Helpdesk Launched May2011 Timeline Development started June 2010 Private Beta Dec 2011 Public Beta Mar 2011 Full Launch May 2011
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- 8. Pricing Starting May2011 70% 17%
- 9. Pricing Starting May2011 Goal: Maximize helpdesk usage $5 price point chosen to pre-qualify users. But represented a barrier to people using the product. • • 70% 17%
- 10. Pricing Starting Feb2012 Action: Move to $5 to Free Revenue risk was okay - those plans represented < 2% of total MRR A/B tests indicated that Free would cannibalize other paid plans • •
- 11. 20% 69% Pricing Starting Feb2012 70% 17%
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- 13. 7% PAID TRIAL SIGNUPS PricingStarting Feb 2012
- 14. 34% TRIAL CONVERSIONS within 30days of signup Pricing Starting Feb 2012
- 15. ∆ ACTIVE ACCOUNTS after90 days Pricing Starting Feb 2012 197%
- 16. ∆ ACTIVE ACCOUNTS after90 days 205% ∆ ACTIVE ACCOUNTS after 9 months Pricing Starting Feb 2012 197%
- 17. ∆ ACTIVE ACCOUNTS after90 days 205% ∆ ACTIVE ACCOUNTS after 9 months TRIAL CONVERSIONS LTV +2%; MRR -4% Pricing Starting Feb 2012 197% 1%
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- 20. Weekend Billing 55% BILLINGFAILURE RECOVERIES versus weekdays TRIAL EXPIRATION RECOVERIES versus weekdays 22%
- 21. Weekend Billing Isbad for your health 34% BILLING FAILURE RECOVERIES* TRIAL EXPIRATION RECOVERIES 22%
- 22. Weekend Billing Isbad for your health 34% BILLING FAILURE RECOVERIES* TRIAL EXPIRATION RECOVERIES 23% BILLING FAILURES 22%
- 23. Weekend Billing Isbad for your health 34% BILLING FAILURE RECOVERIES* TRIAL EXPIRATION RECOVERIES 23% BILLING FAILURES * Only 6% improvement when you look at 60-day billing failure reactivations (29% recovery vs 73% reactivation) 22%
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- 26. Downgrade Reasons 54% PROVIDEDA REASON when it was optional
- 27. Downgrade Reasons Requirethem and follow-up 66% MORE RESPONSES
- 28. Downgrade Reasons Requirethem and follow-up 66% MORE RESPONSES RESPONDED TO 77%
- 29. Downgrade Reasons Requirethem and follow-up 66% MORE RESPONSES RESPONDED TO 14% ∆ DOWNGRADE REACTIVATIONS 77%
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- 32. Satisfaction Surveys viaemail 46% RESPOND 25% for uniques OPEN RATE 19%
- 33. Satisfaction Surveys viaemail 49% ANSWER
- 34. Satisfaction Surveys viaemail 49% WE REPLY TO ANSWER 61%
- 35. Satisfaction Surveys viaemail 49% WE REPLY TO ANSWER 61% 40% REPLY BACK
- 36. Satisfaction Surveys viaemail 48% ANSWER
- 37. Satisfaction Surveys viaemail 48% ANSWER
- 38. Satisfaction Surveys viaemail 48% TWEET ANSWER 8%
- 39. Satisfaction Surveys viaemail 48% TWEET ANSWER 8% 5X ∆ TWEETS
- 40. NEW Satisfaction Surveys Higher responserates 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.
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- 43. Pricing Starting Feb2012 Goal: Simplify product & pricing 3 products and 12 total price points is a lot to digest. Most free accounts now used both products. Didn’t want to penalize usage. • •
- 44. Pricing Starting Feb2012 Action: Create a single product w/ 4 plans Determine what the new price points should be. Assess conversion and risk to existing MRR. • •
- 45. Pricing Starting Feb2012 $92 AVERAGE $45 $18 Process: Price points Look at the average per seat rates (including discounts) across all products •
- 46. Pricing It’s science,bitch! Process: Price points Look at the average per seat rates (including discounts) across all products Bring in PriceIntelligently to survey existing & churned customers + market panels • •
- 47. Pricing Are youdown with IPP? Process: Price points Look at the average per seat rates (including discounts) across all products Bring in PriceIntelligently to survey existing & churned customers + market panels • • $16 IPP - CUSTOMERS Free, Paid, Churned IPP - MARKET PANELS SaaS & Software companies $21 $18 CURRENT AVERAGE Across existing customers
- 48. Process: Price points& features Look at the average per seat rates (including discounts) across all products Bring in PriceIntelligently to survey existing & churned customers + market panels Set monthly and annual price points to straddle IPP • • • Pricing Starting Feb 2014
- 49. Pricing Starting Feb2014 Process: Risk assessment We’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 • •
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- 51. Pricing Starting Feb2013 18% AVG SAVINGS Varied by plan
- 52. 7X Pricing Starting Feb2013 22% ANNUALS double normal rate CASHFLOW MRR lost vs annuals
- 53. Pricing Starting Feb2013 2% TWEETED
- 54. 28% Pricing Starting Feb2014 8% 30% TRIALS
- 55. ∆ TRIAL SIGNUPS PricingStarting Feb 2012 10%
- 56. ∆ TRIAL SIGNUPS 10%∆ CONVERSIONS Pricing Starting Feb 2012 10%
- 57. ∆ TRIAL SIGNUPS 10%∆ CONVERSIONS Pricing Starting Feb 2012 10% 2012 Q2 - worst qtr of 2012 REVENUE CHURN Net for existing customers
- 58. ∆ TRIAL SIGNUPS 10%∆ CONVERSIONS Pricing Starting Feb 2012 10% 2012 Q2 - worst qtr of 2012 2013 Q2 - best qtr ever REVENUE CHURN Net for existing customers
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- 60. Thank you Any (easy)questions? :) Richard White @rrwhite Like this talk? Join me at UserConf! The first conference focused on how startups can give (& scale) great customer service. Go to UserConf.co for details.