How We Achieved a 570% Conversion Increase Last Black Friday (With Templates for Your 2024 Campaign)

Hey, SaaS founders!

We want to share our experience and introduce you to a Black Friday case study from Hocoos (our AI website builder project) that yielded incredible results – a 570% increase in conversion rate. 

Better yet, we’ll provide you with the exact templates we used so you can implement similar strategies in your business.

Instead of our standard single-option pricing ($15/month), we presented two strategic choices:

• Option 1: $1 for the first month (then $15/month)
• Option 2: $75 annual plan (50% off our usual $150)

We implemented several proven psychological triggers:

• Urgency: Countdown timer showing limited time availability
• Risk Reduction: “Try now, cancel anytime” messaging
• Clear Value Proposition: Displaying discount percentages (94% for monthly, 50% for yearly)
• Reason-Why Psychology: Using Black Friday as a clear justification for the special offer

• Strong call-to-action: “Get it now”
• Trust-building elements
• Clear price comparison
• Visual hierarchy emphasizing the discount

– [Download the exact Figma template we used here]

Here’s an interesting observation: While our regular $15/month plan has an 8% churn rate, the $1 promotional offer saw 4x higher churn in the first month. However, the math still works strongly in our favor:

Regular Plan Economics (per 100 conversions):

• Initial revenue: 100 users × $15 = $1,500
• Retention after month 1: 92 users (8% churn) × $15 = $1,380 monthly revenue

Promotional Plan Economics (per 570 conversions due to a 5.7x higher conversion rate):

• Initial revenue: 570 users × $1 = $570
• Retention after month 1: 387 users retained (32% churn) × $15 = $5,805 monthly revenue

Conversion Rate 60 days avg (before black friday) vs black friday

Churn Rate Pre-Black Friday (regular plan)  vs Black Friday (promotional plan) acquired users:

While churn is higher, the significantly increased conversion rate (5.7x) more than compensates for the revenue difference. Plus, we’re acquiring customers at a much higher rate, building a larger user base for future updates and expansions.

Accumulated Profit Over 12 Months

The churn rate was set at 8% starting from month 3 for both plans. This reflects how churn naturally levels out over time, as users who primarily purchased during the promotion without a strong need for the product were filtered out in the first two months.

In reality, the churn rate often decreases further as the remaining users become more loyal and engaged with the product. However, for simplicity and illustration purposes, we have applied a consistent 8% churn rate from month 3 onward, knowing it is a conservative estimate and likely lower in practice.

• Promotional Plan Total Profit (12 months): $45,955
• Regular Plan Total Profit (12 months): $11,856

The ratio is calculated as:

Accumulated Revenue Table for Regular and Promotional Plans:

Here’s how to leverage PayPro Global to implement the Black Friday strategy outlined above for your SaaS product:

• Create your primary plan: This would be your regular monthly plan.

• Create a discounted monthly plan: Provide your clients with your Black Friday offer for the first-month. Utilize PayPro Global’s recurring billing feature, setting the initial price at whatever value you choose for your SaaS and subsequent months at your regular price.

• Create a discounted annual plan: This would be your annual plan.  

• Contact the PayPro Global team to create free checkout designs for you, or you can do it yourself from the code editor in the PayPro Global Vendor Control Panel.

• Let’s not forget the importance of transparency. Clearly communicate the trial duration and the automatic transition process to manage user expectations.