As Apple’s App Store expands price points options, RevenueCat rolls out A/B price testing tools • TechCrunch

Just one day after Apple announced a reform About its App Store pricing policy to introduce 700 new price points, RevenueCat subscription platform is roll out a new feature that will allow developers to A/B test different prices for their app subscriptions. The feature called “Experiment” is intended to help developers determine the best price point to convert free or trial users into paying customers, retain customers they have, test pricing for different service levels, etc.

The feature comes at a time when subscriptions have saturated the app economy, but inflation is causing consumers to re-evaluate which paid services are really worth keeping. This could have ramifications on the broader app ecosystem, as app developers aren’t considered a “must have”, could see an increase in cancellations as users continue to tighten their belts. belly.

Being able to figure out which price points work best is valuable to subscription app developers trying to operate in this economy — but it’s also something that requires data and analysis. firmly to ensure that it is done properly. For example, simply offering steep discounts may help drive conversions, but may not create a sustainable business in the long run. Developers need to see which rates can deliver the highest lifetime value (LTV) per customer — that is, the revenue they generate from their subscriptions over a longer period of time.

Revenue says the new feature works remotely, meaning developers don’t have to submit app updates to the App Store to test their latest hypothesis on pricing. Using tables and other data visualizations, the Experiment will also show how price changes will impact the entire subscription funnel, including trial, paid, and non-subscribers. use leave. This analysis includes many key metrics for conversions, testing, churn, LTV revenue, MRR, etc.

Image credits: RevenueSand

The company notes that while price tests are important, there are lots of other factors that go into determining how to charge for a product. It Suggest developers also test things like subscription length, mix of available durations, plans, trial lengths, introductory offer prices, offers designed to win back left users, local pricing, etc.

Pricing testing isn’t new to the app industry — and it can be controversial at times. Consumers have angrye.g. to find out what Tinder is surreptitiously charging old users more for the same service. (The company then announced it would end the practice after the court has ruled Tinder violated age-discrimination laws.) In other words, it’s important to keep the ethics and legitimacy around pricing in mind when conducting price change experiments.

While other tools are available for A/B testing, in the mobile subscription management space, YC-backed RevenueCat is considered the market leader, having raised 56.5 million USD in sponsorship, after last year 40 million USD Series B. The launch will help the service stay more competitive as it grows. And, with Apple’s announcement yesterday, it could also attract more customers excited by the possibility of more price points to choose from.

Along with the launch, RevenueCat’s year-end report also provides some insight into today’s most popular rates. Using data from over 12k apps, the company found that $9.99 was the most common monthly subscription price, even though the average price was $8.94. For an annual subscription, the most popular price is $19.99 while the average price is $37.51.

The new Experimental feature is rolling out with the Enterprise and Enterprise plans.


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