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The Data Behind Purchasing Behavior at UserVoice – Pricing for Conversion

jdavid 13y ago
Glad to see other companies sharing their experiences with iterating quickly on pricing. Marketing really isn't that different than code.
Brushfire 13y ago
All the images are becoming rate limited by google.
- deleted 13y ago
  [deleted]
- rrwhite 13y ago
  Contacted them about fixing the images. In the meantime here's a PDF version with them: https://dl.dropboxusercontent.com/u/28/UnSexy-PricingforConversion-Part1.pdf https://dl.dropboxusercontent.com/u/28/UnSexy-PricingforConv...
mp99e99 13y ago
This is really useful, thanks for posting!
dangrossman 13y ago
The surprising bit here is that dropping the requirement for a credit card had no effect on conversions or trial signups. I've only ever read the opposite, and my own testing at Improvely matched what I've read: the trial signup rate more than doubled when a credit card wasn't required. At the same time, the extra people signing up were not good leads. These new users rarely completed the steps to start using their account, those that did submitted more support requests, and the conversion rate to paying customers at the end of the trial was more than halved. I ended up putting the credit card requirement back in.
- chatmasta 13y ago
  I too am surprised by this. Another benefit of requiring a credit card is that you prevent abuse of the trial system. Obviously this applies more to some businesses than others. For instance, we are setting up a VPN business right now and considering a free trial option. In that case, it seems like it would be necessary to require a credit card so that users could not keep signing up for the free trial with different email addresses.
  - dangrossman 13y ago
    You're probably going to have to go a step further; something like Sift Science or MaxMind MinFraud along with automated SMS/voice verification of a unique phone number per trial. There isn't a carder in the world that wouldn't love to use a VPN service that offers free trials. They want the VPN to use as a proxy when testing stolen credit card numbers on other ecommerce sites... and they have plenty of cards to use to sign up for free trials with you first.
    - chatmasta 13y ago
      This is definitely true and something I've experienced running a proxy service with 500+ clients. Fraud percentages are WAY too high right now. We're solving it by simply checking the billing address vs. IP geolocation. Hopefully that helps.
- rrwhite 13y ago
  Yeah I could do a whole other article on how we shifted from minimizing friction on the sign up form to actually increasing it. If it's too easy to sign up for your service it's hard to tell if your marketing actually worked and you have qualified leads or if you just have a bunch of people that "clicked here".
- scriby 13y ago
  It's probably because their free plan already didn't require a CC. I think there's a big difference between "no access" and "CC required", but less of a difference between "free access" and "CC required for upgrade".

Glad to see other companies sharing their experiences with iterating quickly on pricing. Marketing really isn't that different than code.

Brushfire 13y ago

All the images are becoming rate limited by google.

deleted 13y ago
[deleted]
rrwhite 13y ago
Contacted them about fixing the images. In the meantime here's a PDF version with them: https://dl.dropboxusercontent.com/u/28/UnSexy-PricingforConversion-Part1.pdf https://dl.dropboxusercontent.com/u/28/UnSexy-PricingforConv...

mp99e99 13y ago

This is really useful, thanks for posting!

dangrossman 13y ago

The surprising bit here is that dropping the requirement for a credit card had no effect on conversions or trial signups. I've only ever read the opposite, and my own testing at Improvely matched what I've read: the trial signup rate more than doubled when a credit card wasn't required. At the same time, the extra people signing up were not good leads. These new users rarely completed the steps to start using their account, those that did submitted more support requests, and the conversion rate to paying customers at the end of the trial was more than halved. I ended up putting the credit card requirement back in.

chatmasta 13y ago
I too am surprised by this. Another benefit of requiring a credit card is that you prevent abuse of the trial system. Obviously this applies more to some businesses than others. For instance, we are setting up a VPN business right now and considering a free trial option. In that case, it seems like it would be necessary to require a credit card so that users could not keep signing up for the free trial with different email addresses.
- dangrossman 13y ago
  You're probably going to have to go a step further; something like Sift Science or MaxMind MinFraud along with automated SMS/voice verification of a unique phone number per trial. There isn't a carder in the world that wouldn't love to use a VPN service that offers free trials. They want the VPN to use as a proxy when testing stolen credit card numbers on other ecommerce sites... and they have plenty of cards to use to sign up for free trials with you first.
  - chatmasta 13y ago
    This is definitely true and something I've experienced running a proxy service with 500+ clients. Fraud percentages are WAY too high right now. We're solving it by simply checking the billing address vs. IP geolocation. Hopefully that helps.
rrwhite 13y ago
Yeah I could do a whole other article on how we shifted from minimizing friction on the sign up form to actually increasing it. If it's too easy to sign up for your service it's hard to tell if your marketing actually worked and you have qualified leads or if you just have a bunch of people that "clicked here".
scriby 13y ago
It's probably because their free plan already didn't require a CC. I think there's a big difference between "no access" and "CC required", but less of a difference between "free access" and "CC required for upgrade".