A/B Testing & Monetization

21 Questions A/B Testing
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Finding the right price through experimentation

Pricing is part art, part science, and mostly guesswork until you have data. We knew we had a product people enjoyed, but figuring out what they'd actually pay for it? That required testing.

The Power of RevenueCat Experiments

Our subscription management service, RevenueCat, has an Experiments feature that lets you A/B test different subscription models. We used it to run experiments mixing and matching prices, subscription lengths (weekly, monthly, annual), and free trial periods (3 days free, 1 week free). The goal: maximize lifetime value per customer.

The Breakthrough Test

We ran our most promising experiment for a month, from August 7 to September 5, 2024 (28 days). The setup:

  • Variant A (control): 3-day free trial with $3.99 weekly or $5.99 monthly subscriptions
  • Variant B: $9.99 weekly with 3-day free trial

The results were eye-opening:

  • Variant A: $1.50 realized LTV per customer
  • Variant B: $2.71 realized LTV per customer (+80.67%)

An 80% increase in customer lifetime value from a single pricing change. With concrete metrics in hand, we made the decision to switch from our old subscription model to the new one.

Beyond Pricing

We also experimented with different paywall UIs to see which designs drove the most engagement. Testing wasn't just about the numbers on the price tag—it was about the entire presentation and user experience.

Impact

Through this systematic, data-driven approach to monetization, we increased Monthly Recurring Revenue (MRR) by 28% while maintaining healthy retention metrics. The key was balancing conversion optimization with user experience, ensuring sustainable growth without alienating our user base.