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He Spent $1M on A/B Tests. Here's What Won.

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TL;DR

Learn how an astrology app spent $1M on A/B testing to optimize onboarding, paywalls, and user retention strategies, achieving significant revenue growth.

astrology app A/B testingonboarding flow optimizationuser retention strategiespaywall testing methodspricing experiments for appspersonalized user experienceapp monetization techniquescustomer lifetime value

Chapters

  1. 0:00Introduction to A/B Testing
    01
  2. 1:00Onboarding Flow Strategies
    02
  3. 2:00User Personalization Techniques
    03
  4. 4:00Paywall Experimentation
    04
  5. 6:00Pricing Strategies and Free Trials
    05
  6. 8:00User Engagement and Retention
    06
  7. 10:00Conclusion and Key Takeaways
    07

Transcript

0:00

40% of people who install this app from an ad end up paying for it. This astrology app spent over a million dollars on AB tests and made $20 million with no investors. All the common advice we hear about onboarding, pay wall,

0:14

we hear about onboarding, pay wall, pricing, and even giving free trials, all of it failed those tests. So, I asked the founder to come on the channel to share all his experiments that won and failed in the last 6 years. The usual advice is to keep onboarding

0:31

short, but based on what we found in our previous episode, studying over a thousand onboarding flows, most of the top crossing apps have one of the longest onboarding flows. Moonly has a similar approach. VR on boarding is 30 screens long. Over the last 6 years, we

0:49

had three major iterations of onboardings. We focused mostly on features, but not the users problem. The latest version shifted the focus to users jobs to be done or the pain behind it. And we offer an activational insight. So we give you

1:02

activational insight. So we give you small bite-sized information that unlocks some insight such as how lunar cycles can affect your mood. And finally, we introduce the feature by showing how it solves your specific problem. Since the app has 40 features and not

1:18

Since the app has 40 features and not everyone uses each of these features, they tailor the onboarding flow based on the ad you came from. We just finished developing our own attribution engine. Today we can connect user from ad network to specific custom

1:31

user from ad network to specific custom product page on app store and then to specific custom onboarding flow and even a specific app experience. Someone who simply search only will see the standard page but someone who search specific feature like

1:45

someone who search specific feature like to they will see fully customized page and set of screenshot. We now have around 10 different onboarding flows in production each built around a specific user job even anxiety or ADHD. By customizing their onboarding flows

2:00

By customizing their onboarding flows their customers lifetime value doubled which means their customers are worth twice more than before. This led them to double their ad spend in a single month. Our cos are now profitable from day zero just because custom on boardings. During the onboarding, we

2:15

During the onboarding, we collect as much information as we can including birth details and personalize the first session. So your user finishes onboarding and lands on the homepage for the first time. What do they see? They see a daily guidance card, moonface, personalized daily program.

2:30

moonface, personalized daily program. Plus, they provide something called personal transits, which works as a perfect hook because you keep thinking about your transits and you remember about this and you expecting when your transit will finish, when the next transit will

2:44

finish, when the next transit will start. Quick assess buttons on main screen are also customized based on their on boarding answers. Customizing their whole experience worked wonders for their app retention numbers. Our day one retention now is

2:59

41%. And day 7 37%. If you're trying to grow an app, you would want to be featured as app of the day. Only has been featured on the app store multiple times. Did this move the needle for you? It worked greatly 15 years ago, but in reality, being feature stopped

3:15

reality, being feature stopped delivering the same benefits today. It tends to bring a lot of irrelevant traffic. Irrelevant traffic shows worse conversion rates. So it just hurts your statistics. The app store algorithms analyze it and may rank you lower in

3:32

search result. It's a problem sometimes . So featuring can still work well for universal generic apps like calculators or flashlights, but it isn't particularly useful for niche apps. When designing the onboarding flow, we always debate when to introduce the

3:47

always debate when to introduce the login. Is it before the customer arrives at a homepage or after? On Mobin only 12% of apps have no sign up or login step anywhere only has 10 million users and no login screen at all. I always recommend to start with

4:02

I always recommend to start with question why do we need this? It's easy to go on afterpilot. You see same elements and dozens of other apps and assume we need it too. Sometimes login even requires an SMS which doesn't always arrive in seconds. Just like that you

4:18

seconds. Just like that you create a UX nightmare. So they asked why do they even need login at all? Was it made to let users keep their data? No, because their data was already stored in Apple keychain and even after installing the app on a new

4:34

iPhone, you will be instantly locked in. Was it to collect emails? Entering a real email creates significant cognitive friction and distracts user from what they came to do. Besides, users are used to signing in with Apple and hiding their real email address.

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