Solving Pricing and Upgrade Challenges

This case study showcases my approach to pricing and upgrade issues from a product design standpoint, resulting in a new upgrade & advertising flows, and groundwork for future experiments.


Problems to Solve

Pricing and upgrades haven’t been tackled before, leaving room for improvement.

Users couldn’t find a clear breakdown of features in different packages or upgrade prices.

Users didn’t know how to upgrade.

Constraint: User testing on pricing was deemed too sensitive, hence inviable.

My Responsibilities

Brainstorming workshop to generate solutions

Defining goals with PM and EM

Risk assessment & prioritization

Creating user flows & design patterns

Defining A/B tests and fake door tests

Impacts

Validated the need for package upgrades

Established the groundwork for the package upgrade and advertising flow

Designed a unified price table for the platform and homepage

Brainstorming Workshop

Align on the state-of-the-art regarding user-driven upgrades, as led by the product manager.

Analyze the strengths and impediments of the current product approach towards user-driven upgrades.

Identify opportunity gaps by reframing impediments into actionable statements (HMW questions).

Brainstorm solutions for the HMW questions and categorize them.

Risk Assessment

As a result, the following approaches have been selected to address within the scope of this project:

Contextual hints & In-context advertisement

Pricing table: Overview of features & possible upgrades

Enhance Feature Flag Structure (not design-related)

Goals

Lay the groundwork for product-led pricing and upgrades

Make sure demand-side customers stay engaged and upgrade to more profitable models.

Moodboard / Competitive Analysis

User Flow

Success Metrics

The impression count of the price table.

The click-through rate of each advertisement.

Design Patterns

Advertising Flow Overview

Pricing Table – Platform

Pricing Table – Homepage

Contextual Advertising Banners

Advertisements in Empty States

Advertising Dialogs

Experiments

Experiment 1:

  • We wanted to optimize the conversion rate by providing the user with sufficient information about the action they are about to take, without deterring them from clicking on actions that imply commitment or payment, such as “Upgrade Now” or “Buy Now.”
  • Action: Conduct a variant test with different CTA copies and track the click-through rate:
    • Book a Consultation
    • Schedule a Consultation
    • Upgrade Now
    • Discover More
    • Learn More
    • Contact Us
    • Get in Touch

Experiment 2:

  • We were unsure whether showing the package prices would increase or decrease the conversion rate.
  • Action: Conduct an A/B Test with and without prices and track the click-through rate.

Preliminary Results

Launched advertisements for 10+ features in Gold packages

Validated a conversion rate of 12.7% within 8 weeks, as of December 17th 2023

Next Steps

Analyze user behaviour data to understand how users interact with the new pricing elements.

Continuously refine the pricing strategy and user experience based on data insights and user feedback.

Key Takeaways

Integrating in-context advertisements and contextual hints into the user interface can enhance user awareness and engagement with premium features, driving higher conversion rates.

Since we couldn’t conduct user research initially, we had to rely on continuous experiments to analyze user behaviour and feedback, which helped ensure our solutions stay effective and relevant.

Team & Stakeholders

Carmen Pölking – Product Manager

Christoph Werner – Engineering Manager

Dominik Rowicki – Software Engineer

Remy Toma – DevOps Engineer

Sergey Falinsky – Software Engineer

Szymon Ludyga – Software Engineer