Increased ARPU by 12%, Retention Rate By 32%
Problem
Retention on non-auto renewing members was lower than industry average
Approach
- Split members into two random groups
- Showed increasing and decreasing prices trend respectively to one group each
Outcome
- Identified the optimal price point
- Identified the marketing angle with highest conversion rate
- Plugged product and performance marketing campaigns
- More likelihood of subscription validated with increasing price trend, even when paying higher than they paid in the previous year by 12%
Result
- 12% increase in Average Revenue per User
- Identified the new optimal price point
- Increase in renewal rate by 32%