Challenge
Drops is a language learning app and one of the leaders in the market niche, With their monthly traffic, the main request was to improve the primary monetization metric, ARPU.
Solution
1. Planning
ARPU growth depends on a few aspects, and some of the main ones are the Paywall & Pricing strategies. Therefore, the Applica product team started by analyzing historical monetization A/B tests: what was tested and why the ARPU was not progressing for a few quarters. The analysis also included paywall examples in language learning apps, updated best market practices, and competitive research.
2. Execution
Building on findings from the planning stage, the Applica product team divided potential experiments into macro and micro levels of paywall experiments for app ab testing.
Starting with macro improvements to grow app, Applica developed the paywall pricing and design. Drops implemented the new variations with Applica’s assistance.
Results
Since Drops is one of the leading apps in the niche with many new users, we conducted the tests quickly, one after the other, and the collected data played an important role in setting the tests’ directions. As a result, we achieved Drops 9% growth in their ARPU from only one experiment.
+ 9%
to ARPU
