Subscription Price Increase Announced

In December, we announced that our monthly and yearly subscription prices would increase. We decided to increase the monthly from $10 -> $15 and the yearly from $110 -> $150. All in all, we have seen that this has been a good decision and I think the adoption went smoothly based on a few strategies we used.

All active subscriptions were grandfathered in. This means that customers currently subscribed to the $10/month plan would be able to keep this price. The new pricing would only affect subscriptions created after the price increase took effect.

The price increase was communicated 1 month in advance. We communicated the increase on our website and in our weekly newsletter. At the time our price increase was announced, we had approximately 1000 users in the trial phase. This announcement was a warning to them, to ensure that they subscribed before January 1st in order to secure the lower subscription fee.

This lead to a lot of subscriptions in December! Customers were rushing to subscribe in order to save $5/month. We ended up totaling 500 new subscriptions in December with 100 created in the last 3 days of the month.

Then January got cold.. with only 140 subscriptions we wondered if we had made the right move. I understood that it was likely only because there were fewer trials since, all of the trials that would have let their free trial run its full course had already signed up in December. Even though that was what I understood, it was hard not to worry that our, so far, effortless growth was going to dry up, and we would need to start developing a more solid marketing plan.