Optimizing Plan Mix in a Subscription Business
How Codecademy shifted users towards longer-term plans.
For a subscription business, plan mix and pricing are two of the most important levers to drive revenue growth. When Codecademy’s paid product was getting started, the vast majority of users choose monthly plans, which limited the amount of money Codecademy could make each month and made it hard to manage churn. Through focusing our experimentation efforts on our pricing, value propositions, and checkout pages, Codecademy was able to dramatically shift its plan mix towards longer-term plans and lay the foundation for a growing business.