How BuyBye increased proceeds per user by 25% with a 50% price increase
BuyBye ran a direct price elasticity test with Superwall and found its users were willing to pay more.
BuyBye is an app that uses gamification to help users limit spending and track savings. Suspecting they might be underpricing their subscriptions, the team wanted to see if their users were willing to pay a higher price for their product, maximizing revenue from every subscription. BuyBye used Superwall to run a direct price elasticity test to understand the financial impact of a price increase on paid subscriptions.
The challenge
BuyBye's challenge was determining the optimal price for their subscriptions:
Maximizing revenue. They needed to see if the revenue gain from a substantial price increase would outweigh the drop in conversion.
Risk mitigation. A large price jump carries a high risk if the conversion drop is too sharp, which is why they needed to run an A/B test.
Key metric focus. The team needed to prioritize proceeds per user (PPU) — net financial gain — over raw conversion volume.
The solution
BuyBye utilized Superwall's remote configuration and A/B testing suite to execute a decisive price comparison test. The experiment was structured as follows:
Control paywall. Featured the original yearly price with a trial offering.
Variant paywall. Featured a 50% higher price for the yearly plan with a trial offering.
Identical design. Both paywalls had the same design, ensuring that the only variable being tested was the price itself.
With Superwall, the team could confidently measure the net financial outcome, answering the question: Did the 50% price gain make up for the inevitable drop in conversion?
The results
The experiment proved that BuyBye users were willing to pay more:
Conversion dropped. Just as the team expected, the variant with the 50% higher price saw conversions drop by 19%.
PPU increased. Despite the conversion drop, the 50% higher price point resulted in an increase of 25% in proceeds per user (PPU).
Profitability shot up. The results proved that the audience was willing to tolerate a higher price, allowing BuyBye to improve overall profitability.