What was the project?
I joined OurFamilyWizard (OFW), an app that helps parents manage child custody schedules and co-parenting information from separate homes, in 2020. OFW was launched in 2001 and is the market leader for co-parenting software. OFW had built a great business, but its signup form was in need of some updating.
After rehabbing the signup flow, we were ready for our next experiment. The product team was releasing a revamped payments product. Previously, payments were an add on that was difficult to find and we charged a transaction fee. Since we believed expenses and payments was an important part of the co-parenting workflow and we were investing in making it much better, we wanted to integrate payments into our packages.
Why was it awesome?
Below is the experiment we set up with screenshots:
| Hypothesis | Creating new packages that include payments will result in a 10% lift in new billings |
| Insights | Pricing had not been changed in 9 years Historically the payments product was a separate add-on and difficult to find |
| KPIs | Average revenue per parent Neutral impact on conversion Higher utilization of our payments product |
- For the control, we really only had one package variation because Package B is a two year version of package A with a discount
- For the treatment, we wanted to create two distinct packages:
- We created Essentials with 8 payments and a new and improved version of ToneMeter, which is like an emotional spell check for your communications with your co-parent
- We created Premium (aka the unlimited package) with unlimited storage, unlimited payments and unlimited affidavits (important if you’re going back to court)
- We offered one and two year options of each package where you get the same discount by purchasing the two year
- Note that we did not change the Build / Choose your own package
- Ever since it was created in 2001, OFW has had a Build / Choose your own package option with a $99 entry level price point so we did not touch that and only changed the pre-built packages
What challenges did we encounter and what did we learn?
Not surprisingly the biggest challenge was determining the pricing & packaging strategy. Since pricing hadn’t been changed in 9 years, it took us 9 months to align on the right pricing & packaging strategy. Every department weighed in and ultimately we all got aligned.
The experiment ended up being a winner with a lift in average revenue per user and utilization of the payments product has increased.