Month 9 of Genie 007. Trial activation was OK but monthly churn was ugly — around 35% on the first cohort.
I'd rebuilt onboarding twice. Added tooltips. Shortened the setup flow. Added a quick-start video. Nothing moved the number.
One afternoon I just changed the price. £4.99 to £6.99. 40% increase. No announcement, no A/B test, no big plan. Just changed it.
A month later I ran the cohort comparison.
Churn on the £6.99 cohort was 22% lower than the £4.99 cohort at the same point.
My working theory: price filters intent before your product ever gets to run its onboarding. The person who signs up at £4.99 is often in "exploring whether I have this problem" mode. The person who signs up at £6.99 has usually already decided they have the problem. They come in differently. They activate differently.
The £4.99 users were costing me the most to serve (highest support load, most "this doesn't work for me" feedback, fastest churn) and converting the worst long-term.
Raising price was the lever I kept ignoring because it felt backwards when growth was slow. Every founder instinct says lower the barrier. But sometimes the barrier is the filter.
A few things I noticed after the change:
Not a huge difference in absolute price terms. But the psychological difference in who it attracts seems real and measurable.
Has anyone else deliberately raised price to fix a retention or quality-of-user problem? Curious whether this generalises or whether I just got lucky.
Price as a filter for intent is a useful framing. The drop in support load after the increase is consistent with attracting people who already decided they have the problem rather than people still exploring whether they do.
That framing landed for me too. The support load drop was actually the first signal I noticed - before I even had the retention cohort data. Which in hindsight makes sense: the person who decided they have the problem troubleshoots. The explorer abandons. The price wasn't a barrier to value, it was a barrier to the wrong users getting in. -- Bill