How to Use User Surveys to Set Effective Paywalls and Pricing for Your App

In the competitive world of subscription apps, offering a mix of free and premium features can be a powerful growth strategy. However, figuring out which features should remain free, which should go behind a paywall, and at what price can be a tough decision. By using user surveys and pricing models, app developers can gain crucial insights into what their users value most and how much they’re willing to pay, allowing them to create optimized subscription packages that attract new users while increasing revenue. Here’s how your app can make the most of user feedback and maximize the value of both free and paid features.

Challenges of the Freemium Model

With freemium apps, users get a taste of the product for free but need to upgrade to a paid version for advanced features. This model works well for introducing people to the app, but it also creates challenges in deciding what should be free versus paid. Striking the right balance is crucial—users need to feel that premium features offer enough extra value to justify the cost, while free features should still be attractive enough to keep people engaged.

For instance, when the New York Times switched to a $15 monthly subscription in 2011, they kept some free content accessible, but offering too much for free reduced the motivation for users to subscribe. The lesson here? The free tier should entice users without giving away so much that it discourages them from upgrading.

Once you’ve identified the best features for your subscription tiers, setting the right price is the next step. This requires understanding your audience’s willingness to pay and ensuring your pricing isn’t so high that it alienates users or too low that it fails to sustain the business.

Using Surveys to Understand What Users Value: MaxDiff Analysis

A great way to identify the features that matter most to your users is through a MaxDiff survey. This method presents users with various features and asks them to rate which ones they value most and least. The results show a clear ranking of each feature’s value, helping you decide which features should be in the free version and which to reserve for paying customers.

For example, if a photo-editing app discovers that users find advanced filters and export options to be the most valuable, those features might be candidates for the premium tier. By understanding what your users value most, you can structure your subscription tiers to include high-value features that encourage upgrades while leaving enough basic functionality in the free tier to retain new users.

Determining the Right Price with Van Westendorp’s Model

The Van Westendorp pricing model is a survey method that helps gauge users’ sensitivity to different price points. By asking questions like, “At what price would you consider this subscription too expensive?” and “At what price would you consider it a bargain?”, the survey can identify the optimal price range for your app’s premium features.

This model produces a graph where key points, such as the “Point of Marginal Cheapness” and “Point of Marginal Expensiveness,” reveal the boundaries of what users are willing to pay. For example, if the survey indicates users find $5/month reasonable and $15/month too high, this provides a clear range for setting your subscription price.

This data is especially valuable for freemium apps, where balancing price and perceived value is key to converting free users into paying customers.

Evaluating Specific Features for the Paywall

In addition to understanding the overall willingness to pay, it’s important to determine which specific features users would be willing to pay for. Adding a targeted question in your survey—such as “Would you be willing to pay to access this specific feature?”—helps gauge interest in individual features and further refines your subscription offering.

For example, if users show a high willingness to pay for offline access but low interest in paying for daily notifications, you might want to prioritize offline access as a premium feature while leaving notifications as part of the free offering.

Tips for Effective Survey Design

When designing surveys, it’s crucial to keep a few best practices in mind:

1. Define the Research Focus: Keep the survey focused and avoid long, complicated questionnaires. This helps keep users engaged and ensures the results are relevant.
2. Segment Your Audience: Separate paid and free users in your analysis, as their needs and engagement levels may differ. Demographic information can also provide additional insights.
3. Include Screening Questions: Filter out responses that may not be relevant by asking basic demographic questions or identifying users unfamiliar with certain features.
4. Test and Avoid Bias: Make sure the questions aren’t leading and review the survey to ensure it flows logically.

Wrapping Up: Key Takeaways

By leveraging surveys to identify value drivers and understand price sensitivity, app developers can create well-balanced subscription models that attract and retain users. Here’s a quick recap:

• Identify app value drivers with MaxDiff surveys to structure attractive subscription tiers.
• Use Van Westendorp’s model to pinpoint the optimal price range that users are willing to pay.
• Survey feature-specific willingness to pay to determine which features belong behind a paywall.

With these methods, freemium apps can maximize their appeal while securing sustainable revenue through carefully structured paywall features and pricing.

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