How Preu AI increased proceeds per user by 80% with strategic annual plan anchoring
By anchoring its monthly plan against a heavily discounted annual plan, Preu AI maximized revenue without dropping the lower-commitment option.
Preu AI is a specialized educational technology application that assists students preparing for the PAES university entrance exam in Chile. Operating in a market where educational success is critical, the app's monetization strategy needed to effectively convert users by showing the value of long-term commitment.
Using Superwall's experimentation platform, Preu AI tested a pricing psychology hypothesis: Would anchoring a monthly plan against a heavily discounted annual plan drive higher overall revenue?
The challenge
Preu AI's main challenge was determining how to maximize high-value users. The team faced three intertwined questions:
Long-term commitment. The team needed a way to encourage users toward the high-value annual plan without eliminating the lower-commitment monthly option.
Pricing psychology. The hypothesis was that showing the annual plan's price would make the monthly plan seem too expensive by comparison.
Measuring net revenue. They needed analytics to track conversion volume and proceeds per user (PPU) to confirm that the strategy led to financial gain.
The solution
Preu AI utilized Superwall to execute an A/B test:
Monthly trial only. Featured a single monthly subscription option with a "Try Free" button.
Monthly plus annual anchor. Featured a monthly subscription plus an annual plan at 60% of the monthly price.
The paywalls highlighted the urgency of success by contrasting the risks of failing the exam with the benefits of immediate access.
The results
The experiment showed that price anchoring was the most profitable strategy:
PPU soared. The variant featuring the discounted annual plan resulted in a massive 80% increase in proceeds per user (PPU).
Conversion improved. The strategy significantly improved trial quality, leading to a 22% increase in the trial conversion rate.
Anchoring validated. The results confirmed the hypothesis that by providing a strong annual anchor, the team maximized revenue.
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