How PowToon Optimized Its Pricing Page To Increase Revenue

How PowToon Optimized Its Pricing Page To Increase Revenue

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PowToon is a cloud-based animation software program firm based mostly out of London. Launched in 2012, PowToon has over 12 million customers worldwide from numerous enterprise verticals who use the software to create enjoyable and interesting explainer movies.

Drawback

For any SaaS agency, the pricing web page is closest to the funnel. So it is sensible to optimize it for max impression on the underside line. Like most SaaS companies, PowToon’s pricing mannequin is predicated on totally different function choices. These embrace watermark removing, privateness management, high quality, and export choices, amongst others. A comparatively new entrant to those capabilities is storage.

Powtoon gives three plans:

  • A free plan that gives 100 Mb storage.
  • A $19 month-to-month professional plan that gives 2Gb storage.
  • A $59 month-to-month marketing strategy that gives limitless storage.

That is how PowToon’s pricing web page initially appeared:

unlimited_2gb

Check

Dan Rimon, director of product at PowToon, determined to check out totally different pricing levers. The speculation was that the ‘limitless storage’ function provided underneath the marketing strategy was an unquantifiable and obscure commodity, whose true worth might not be perceived by potential consumers.

“We didn’t know precisely how our audience would understand the ‘storage’ functionality. Each our enterprise plans (limitless and a couple of Gb) supply virtually limitless storage. The truth that we weren't capable of crunch the function in actual numbers (limitless) might have been resulting in the incorrect perceived worth,” stated Dan.

The thought was to check totally different storage values for the Professional and Enterprise plans. Dan examined three variations towards the unique:

  • 10 Gb storage in Enterprise Plan and 10 Gb storage in Professional Plan
  • 2 Gb storage in Enterprise Plan and a couple of Gb storage in Professional Plan
  • 10 Gb storage in Enterprise Plan and a couple of Gb storage in Professional Plan

Simply to remind the readers, the unique model provided Limitless versus 2 Gb storage for the Professional and Enterprise plans, respectively.

Outcomes

The third model with 10-Gb storage for the marketing strategy versus 2-Gb storage for the professional plan turned out to be the winner. It elevated the income by 27.9%. Right here’s the profitable model:

Powtoon Pricing Page A/B testing

Dan attributes the outcomes to a transparent distinction between the worth perceived within the case of the 10 Gb versus 2 Gb model.

“We attribute the outcomes of the check to our customers’ talents to actually perceive the worth they have been getting. Customers responded higher to an actual quantity (10 Gb) than ‘limitless’, which frankly sounds pretty however is tough to quantify,” Dan added.

Steady Course of

PowToon has taken the path to steady testing to optimize its pricing web page. Their product workforce runs a check each two weeks and shares the outcomes and learnings internally, no matter an inconclusive check. They subsequent examined the best way their month-to-month and annual pricing plans have been displayed to seek out out whether or not it psychologically impacted the best way guests selected a specific plan. Although the unique model outperformed the variation on this case, they however made this cool video to share the outcomes internally.

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