How testing SaaS pricing and the user journey helped Wistia double sales
Wistia brought us on to help them optimize their funnel and drive rapid growth through experimentation. We helped them develop a new, game-changing approach to pricing, and allowed them to double their sales while cutting their ad spend by 88%.
Competing against free-to-use giants like YouTube & Vimeo with a paid SaaS product, can be a tough sell. It meant that in order to be competitive, Andrew Capland (Leader of Wistia’s Growth Team) needed to optimize their entire user journey, from visit to lifetime value.
We were brought on to help optimize the funnel end-to-end, with the challenge of driving rapid growth through experimentation.
We started out by launching an in-depth analysis of Wistia’s acquisition channels, users & website.
We quickly discovered that many visitors had already seen the Wistia video player on another website, and wanted to take a free trial straight away – without knowing the product’s other killer features.
We also found that the ‘elephant in the room’ had to be addressed: potential customers were going to compare Wistia to cheaper alternatives like YouTube and Vimeo – so we needed to help these users make an educated comparison.
Using data & insights, we launched a number of tactical experiments (on page design, layout), but our most impressive result on this particular project came from a strategic test we ran on Wistia’s different pricing plan options.
Most SaaS companies use the same pricing model: cheaper plans have limited features, and the more you pay, the greater the number of features you receive. In our pricing test, we gave the same functionality to everyone, regardless of the plan they were on. Instead, we limited the number of videos users can upload – the more you pay, the more you can upload.
We hypothesized that this new model would allow Wistia’s new users to better understand the product’s proposition and functionality, which would in turn remove this barrier to conversion and increase sales.
“We constantly found ourselves saying things like ‘Thank God for Conversion'”
Within just a few months of testing, Wistia saw some incredible results.
Sales more than doubled, and revenue increased by 46% – all whilst they slashed their Ad spend by 88%.
Andrew Capland said that we had “changed the way they do business”. He said “when we first started working with them [Conversion], folks at Wistia weren’t interested in A/B testing. Now, we’re A/B testing tons of things, and our business growth has never felt more organised.”
Wistia went from being a business who had barely run an experiment before, to a business who used experimentation as a fundamental driver for growth.
Increase in revenue
Increase in sales
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