increase in cLTV and revenue
Enhanced user LTV insights to power up further testing
App Toro is a team of expert app developers from Slovakia who have developed a portfolio of 17 apps and reached 2.6M total downloads. The company’s Sensual app provides curious readers with a library of weekly added erotic stories.
Tomáš Kvasnovský / CEO of App Toro
Increase user LTV to unlock growth through paid user acquisition channels.
Through an initial analysis of subscription packages and their renewals, we learned that despite the pricing being pretty standard when compared to the competition, the “yearly” subscriber generated more than 2.5x revenue of the “monthly” subscriber, but there was the vast majority of low-value “monthly” subscriptions.
Before testing anything, we built and helped implement an LTV prediction tool that allowed us to understand the impact of pricing and paywall changes in a longer timeframe (13 months) based on only a couple of days’ worth of data.
Based on our initial learnings, we hypothesized that if we made the “yearly” option attractive enough (both visually and pricing-wise), we could persuade a large portion of the otherwise “monthly” subscribers to commit to yearly – thus increasing the revenue without any significant product changes.
We proceeded to design a couple of tests which included updated plans’ prices, fine-tuned paywall’s visuals, and “special features” added to the yearly plan to make it irresistible compared to the “monthly”.
“Our first test proved to be a huge success, increasing the 13m predicted revenue by 40%! It became clear that Sensual’s users are receptive to such changes and that there’s likely additional room for improvement, so why stop there? We now have a solid analytical tool in place to measure such impacts. We will continue testing further and iterating on the initial result for Sensual – but also for all other apps in their portfolio.”
Martin Jelinek / Head of Growth at Appagent
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