Wondering if Splitwise Inc. should re-evaluate its Pro subscription, currently priced at INR 149/month (INR 999/year) Here is pricing for a few other popular subscriptions in India: Netflix at INR 149/month (Mobile) Swiggy One at INR 75/month (starting) JioCinema at INR 999/year Assuming that primary target segment of Splitwise Inc. is bachelors, either in college or recently employed, is current pricing really the most optimal? Splitwise Inc. has 100M+ downloads on Android, so clearly it has resonated well with users However, recent reviews on Android play store show that users are not willing to convert to customers at current pricing. And they dislike the daily limits and Ads What can Splitwise Inc. do? Not to overstep, but I can think of a few things: 1) re-evaluate pricing - while revenue per customer will go down but more customers and hence higher overall revenue may make up for it (there are services such as Licious that ask for nominal subscription fee, offer significant value in return and keep you hooked) 2) offer group plans - splitting expenses is a group thing, why keep plans for individuals (not straightforward but can be worked out) 3) communicate benefits better - currently "Unlimited expenses" seem to be the only perceptible benefit, value of rest of the benefits can be communicated better (if users indeed see those as benefits) PS: all of this is based on very high level assumptions #product #monetization #pricing #subscription
One of the revenue models can be brand collaboration, to favor payments via particular banks/modes. With the help of Merchant Discount Rate, they'll be able to earn decent revenue, given they have 100M+ downloads. This will ideally complete the user journey. What do you think Deepu Jha ?
Agreed. Just to add, I believe a premium subscription should also give users the ultimate benefit: recovery using UPI 😇 Imagine withheld amounts for years with friends/colleagues, simply coz they FORGOT! Allow pro users to send pending amounts as bills to respective UPI ids. Reduces a major pain of users, this.
they can just price it per "Group" that you create based on number of people.
I don't know what their strategy and analytics team is doing out there. Many of its users used to split even 100-200 and they kept the monthly subscription at 149. I think they might have mistakenly released the US pricing in India !!
And to be noted, most users use splitwise one time like during trips, events, or get-togethers which usually occur once/twice a month. May be they can plan their subscription based on events a user create?
I'm confused, some product manager at Splitwise Inc. might have come to this decision using data and user research but why there's a discrepancy among other product managers, Few reasons, 1. The company is letting go of freeloaders, this way they will only have interested users who are ready to pay for their pricing which directly aligns with their revenue generation strategy. 2. The company is not Indian so probably they have limited experience understanding the Indian user's mindset. I have seen the same with many companies in my consulting journey. Indians have a very different mindset. 3. They did not conduct user research on this strategy with Indian users. 4. Maybe they need better product managers. They could also explore other methods of revenue generation.
Liked the #2 - bang on. imagine 4 friends using Splitwise - why would all 4 of them pay when the hack is one of the person makes entry on behalf of everyone else. And this would again land Splitwise Inc. into the Scalability problem. Knowing the TG, the best one is to only offer group plans. Sample can be: <4 4-8 8-20 20+
Well said, in my recent post I have highlighted the features that Splitwise pro is providing and are they worth it! Please check it out and lmk what you think
+1 , I almost stopped using it after seeing this price point.
Product @ Amazon | IIM Calcutta || IIT BHU Varanasi
3moNot now, thanks