# How to Determine Paywall Features and Pricing with User Surveys

- Link: https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/
- Published: 2023-09-20T09:03:20+01:00
- Author: Pierre Neau

![](https://phiture.com/wp-content/uploads/2023/09/How-to-Determine-Paywall-Features-
and-Pricing-with-User-Surveys.png)

**_This article was updated on February 6, 2026_**

 The mobile subscription economy has evolved dramatically. According to[ RevenueCat’s State of Subscription Apps 2025 report](https://www.revenuecat.com/state-of-subscription-apps-2025/),
the gap between top performers and the rest is widening significantly. The top 5%
of newly launched apps now generate over 400x more revenue than the bottom 25% after
their first year, up from 200x just the previous year. This widening gap underscores
the importance of strategic **paywall optimization** and pricing decisions.

**2025 Freemium Conversion Rate Benchmarks:**

  |  **Metric** |  **Benchmark** |  
 |  Freemium-to-paid conversion (self-serve) |  2-5% average, 6-8% top performers |  
 |  Free trial conversion (with card upfront) |  8-12% good, 15-25% excellent |  
 |  Monthly retention (hard paywall) |  12.8% median |  
 |  Monthly retention (freemium) |  9.3% median |  
 |  Optimal trial length |  5-9 days (52% of trials in 2024) |

_Sources:_[ _RevenueCat State of Subscription Apps 2025_](https://www.revenuecat.com/state-of-subscription-apps-2025/)_,_
[ _First Page Sage SaaS Freemium Conversion Rates Report_](https://firstpagesage.com/seo-blog/saas-freemium-conversion-rates/)

Notably, hard paywall apps see faster conversions on average, but the best freemium
apps still achieve strong Day 0 conversion rates, proving that execution matters
more than monetization model alone. Additionally,[ 35% of apps now mix subscriptions with consumables or lifetime purchases](https://www.revenuecat.com/state-of-subscription-apps-2025/),
reflecting a shift toward hybrid monetization strategies.

 

 [https://phiture.com/wp-content/uploads/2023/09/Paywalls.mp3](https://phiture.com/wp-content/uploads/2023/09/Paywalls.mp3)

_Listen along to the article with an AI-generated narrator. _

Table of Contents

 * [Challenges of the subscription model](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#challenges_of_the_subscription_model)
 * [Using MaxDiff Analysis for Feature Prioritization](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#using_maxdiff_analysis_for_feature_prioritization)
 * [Van Westendorp Price Sensitivity Meter: Measuring Willingness to Pay](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#van_westendorp_price_sensitivity_meter_measuring_willingness_to_pay)
 * [Which Features Should Be Behind Your Paywall?](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#which_features_should_be_behind_your_paywall)
 * [Best Practices for Pricing Research Surveys](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#best_practices_for_pricing_research_surveys)
 * [Conclusion: Building Your App Pricing Strategy](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#conclusion_building_your_app_pricing_strategy)
 * [Useful Resources](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#useful_resources)
 * [Before You Go](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#before_you_go)
 * [Frequently Asked Questions:](https://phiture.com/mobilegrowthstack/how-to-determine-paywall-features-and-pricing-with-user-surveys/#frequently_asked_questions)

## Challenges of the subscription model

With freemium apps, users have the opportunity to explore and experience a product
by accessing features for free without financial commitment. However, to benefit
from advanced functionalities, users need to pay for a subscription.

The freemium model serves as a powerful marketing and user acquisition strategy,
providing potential subscribers with a sample of what the product offers. Users 
are subsequently encouraged to upgrade to a premium version to unlock additional
features or enhanced benefits. When unlocking key features and functionalities within
the app, users must feel that the paid experience delivers substantial added value
that contributes to an enriched user experience overall. **The price required to
access the premium experience is the measurement of that added value. **On the developer
side, there are opportunities to foster user retention and drive continued revenue.

Despite its advantages, the freemium model also presents challenges, such as determining
which app functionalities should be made available for free and which ones should
be reserved for paid access. How then should freemium apps make this distinction,
and how can they find a balance between staying competitive and without giving too
much away? 

We witnessed this challenge when the New York Times switched to a $15 monthly subscription
in 2011. The paper continued to [offer free access to 20 articles](https://www.nytimes.com/2011/03/18/business/media/18times.html),
which ultimately diminished the attractiveness of the paid plan. Finding the right
balance for a subscription-based app becomes crucial, as it entails creating a free
experience that attracts new users while offering an attractive premium experience.

Once you know how to package your subscription, it’s crucial that you set a competitive
price for potential users.[ Finding the right price point requires sensitivity toward a variety of personas](https://phiture.com/mobilegrowthstack/app-pricing-optimization-guide/),
but also an understanding of their **willingness to pay** for access to certain 
features. The **subscription pricing** must be reasonable—price too high and you
risk alienating potential subscribers; price too low and you sabotage future revenues.

When it comes to understanding how to package your subscription plan, which features
to incorporate, and what pricing models to implement, there are tools that can inform
your decision: market research and competitor analysis, A/B testing, analytics, 
and user feedback surveys. A combination of these tools will provide you with accurate
solutions. The following sections focus on mapping value drivers and capturing **
willingness to pay through user surveys**.

## **Using MaxDiff Analysis for Feature Prioritization**

[**MaxDiff analysis**](https://www.qualtrics.com/blog/an-introduction-to-maxdiff/)(
also known as Maximum Difference Scaling or Best-Worst Scaling) is a survey approach
that aims to identify the product features or benefits that are most valued by users,
and to pinpoint the value proposition that best aligns with their specific use cases.
These insights are essential for structuring your various subscription tiers and
offering an appealing package.

[**Feature prioritization with MaxDiff**](https://www.surveymonkey.com/market-research/resources/prioritize-features/)
forces respondents to make trade-offs, which often leads to clearer distinctions
between items compared to traditional rating scales where people may rate everything
similarly. Research shows that users who engage with core features within the first
week are significantly more likely to convert than those who don’t, making feature
prioritization through MaxDiff particularly valuable for **paywall optimization**.

From an analysis standpoint, this scale enables you to create a comprehensive report
that considers each feature individually. It aggregates the relative preference 
magnitude on a scale ranging from -1 to 1. The aim is to create a scale of value
for different features.

**How MaxDiff Survey Analysis Works:**

 1. A list of items (features, attributes, benefits) is created and grouped into sets
    of 3-5 items
 2. Users are asked: “Which features do you value the most and the least?”
 3. For each set, respondents select the most and least valued option
 4. Choices across all sets are analyzed to determine relative importance of each item

To analyze the results, calculate the number of times a feature was selected as ‘
most important,’ minus the number of times the feature was set as ‘least important,’
divided by the number of times the same feature appeared in the responses.

**Best Practices for MaxDiff Surveys:**

 * Test 12-25 features for optimal comparisons
 * Show 3-5 features per question set
 * Aim for[ 150-300 respondents per segment](https://www.surveymonkey.com/market-research/resources/prioritize-features/)
 * Use survey tools like[ Qualtrics](https://www.qualtrics.com/marketplace/max-diff-software-tool/),
   [ SurveyKing](https://www.surveyking.com/help/max-diff-analysis), or[ SurveySparrow](https://surveysparrow.com/blog/max-diff-analysis/)
   for automated analysis

The closer the value is to -1, the less importance users attach to the feature. 
The closer the value is to +1, the more important the feature appears to be to users.
Once this data is available, it becomes possible to determine the features that 
should constitute a premium plan. Exclude features that don’t add sufficient value,
while not necessarily including all of the most valued features—the freemium plan
must remain attractive to retain users.

## **Van Westendorp Price Sensitivity Meter: Measuring Willingness to Pay**

The[ **Van Westendorp Price Sensitivity Meter (PSM)**](https://www.surveyking.com/help/van-westendorp-analysis)
is a **willingness to pay survey** technique developed by Dutch economist Peter 
Van Westendorp in 1976. It identifies the user’s sensitivity to price in order to
understand their willingness to pay to access particular features. Unlike hypothetical
questions like “how much would you pay for this?” which tend to produce unreliable
answers, **Van Westendorp pricing** asks contextual questions about cheap and expensive
pricing limitations.

Research has shown that people’s estimates of their willingness to pay for products
can be significantly higher when asked hypothetically compared to actual purchase
behavior. The[ Van Westendorp model addresses this](https://www.forbes.com/sites/rebeccasadwick/2020/06/22/how-to-price-products/)
by focusing on **price sensitivity** rather than hypothetical purchase intent.

Using a set of four questions, this technique plots a graph that gives a price range
that seems acceptable for paid access to the product. For a freemium app, the four**
price sensitivity questions** are:

 * **Too Expensive:** At what price would you consider the premium subscription 
   to be too expensive and you wouldn’t buy it?
 * **Expensive/High Side:** At what price would you consider the premium subscription
   to be getting expensive but you would still consider buying it?
 * **Cheap/Good/Bargain Value:** At what price would you consider the premium subscription
   to be a bargain and you would definitely buy it?
 * **Too Cheap:** At what price would you consider the premium subscription to be
   too cheap and you wouldn’t trust it?

**Best Practices for Van Westendorp Pricing Surveys (2025):**

 * Collect all four price points in a single, structured question
 * Use[ slider-based inputs](https://www.surveyking.com/help/van-westendorp-analysis)
   with logical limits to prevent inconsistent responses
 * Aim for at least 100-200 completed responses for meaningful results
 * If segmenting results, each segment should meet the minimum response threshold
 * This survey technique works best on free users (analyze subscriber behavior separately)

Once the data has been collected, create a line graph representing the price on 
the x-axis and the number of respondents as a percentage for each of the prices 
on the y-axis. Key intersection points reveal the **optimal price point**:

  |  **Price Point** |  **Description** |  
 |  **PMC** (Point of Marginal Cheapness) |  Intersection of “too cheap” and “a bargain.” Prices below this risk quality perception issues. |  
 |  **PME** (Point of Marginal Expensiveness) |  Intersection of “too expensive” and “not expensive.” The ceiling where value perception drops. |  
 |  **IPP** (Indifference Price Point) |  Intersection of “too expensive” and “a bargain.” Price perceived as neither cheap nor expensive. |  
 |  **OPP** (Optimum Price Point) |  Intersection of “too cheap” and “too expensive.” The sweet spot for maximum conversion. |

The range of acceptable prices lies between PMC and PME. Consider using the[ Newton-Miller-Smith (NMS) extension](https://en.wikipedia.org/wiki/Van_Westendorp%27s_Price_Sensitivity_Meter),
which adds purchase probability questions to connect price perception with actual
buying behavior.

## **Which Features Should Be Behind Your Paywall?**

The Van Westendorp pricing model is valuable for understanding the overall willingness
to pay for a product. However, to create the desired final matrix for **subscription
optimization**, you need to delve into users’ willingness to pay for individual 
features.

To accomplish this, you can include a targeted question in the survey, such as: “
How do you feel about paying for that specific feature?” The respondents would be
presented with answers that require them to make choices, ranging from being entirely
willing to pay to completely unwilling to pay for access to a particular feature.
Unlike Van Westendorp’s sensitivity model, this type of question can be asked to
both free and premium users.

**AI Features and App Pricing Strategy (2025-2026):**

AI-powered features present unique pricing challenges due to their[ unpredictable and expensive cost-per-user from GPU compute](https://www.revenuecat.com/blog/growth/ai-subscription-app-pricing/).
Many apps are shifting from one-size-fits-all **subscription pricing** to usage-
based, hybrid, and value-aligned models. When surveying users about AI features 
specifically:

 * Consider creating separate premium tiers for AI capabilities (like[ Duolingo Max at $29.99](https://www.revenuecat.com/blog/growth/ai-subscription-app-pricing/))
 * Evaluate user willingness to pay for usage-based AI features vs. unlimited access
 * Higher tiers for AI help ensure users generating highest server costs subsidize
   them directly

This approach is optional for non-AI apps. It could be enough to identify value 
drivers and then the overall product willingness to pay. But by having more granularity
in the willingness to pay, you can construct a comprehensive feature value matrix,
which will be instrumental in better optimizing subscription models.

## **Best Practices for Pricing Research Surveys**

There are some important prerequisites for creating effective, unbiased **pricing
surveys** that all researchers must take into account. Modern platforms like[ Qualtrics](https://www.qualtrics.com/),
[ SurveyKing](https://www.surveyking.com/),[ Reforge](https://www.reforge.com/programs/user-insights-product-decisions),
and[ SurveySparrow](https://surveysparrow.com/) offer templates and automated analysis
for both **MaxDiff** and **Van Westendorp** studies.

### **Determine the Focus of Your Research**

Carefully identify the critical aspects of your product and consider which specific
features you’ll inquire about. To ensure the surveys are intelligible and the responses
focused, avoid designing lengthy surveys. If you’ve already questioned your users,
you can get an idea of their past level of engagement and build your survey accordingly.
Stay within the scope of the research and do not mix the value driver and willingness
to pay questions with another questionnaire.

### **Consider Your Audience and Segmentation Parameters**

This step is critical for several reasons. Depending on factors such as the demographics
of your users, their specific use cases, their stage in the customer lifecycle, 
and their level of engagement, the insights obtained can vary significantly. By 
adopting a segmentation approach, you can understand how different user segments
perceive the value of features.

It’s important to avoid mixing too many different demographics together, as this
can lead to counterproductive and potentially misleading insights. The minimum segmentation
should be your paid and free users, as their level of engagement and commitment 
already differs and the survey structure will vary.

### **Include Screening Questions**

Including screening questions in your survey is advised. They can help ensure the
accuracy and consistency of respondent samples by identifying any potential errors
or false answers. They also serve as a preliminary filter to verify that respondents
meet specific criteria, or have a certain level of understanding or experience related
to the survey’s objectives.

By incorporating such screening questions, you can mitigate the risk of collecting
unreliable or irrelevant data. For example, you can start the survey with basic 
demographic questions, but also how long they use the app, how frequently, etc. 
When it comes to the features, it’s better to screen between users who don’t know
about the feature in question or use it very rarely versus users who use it on a
regular basis.

### **Other Considerations**

Avoid formulating difficult or guided questions. Keep the survey[ free of bias](https://www.qualtrics.com/uk/experience-management/research/survey-bias/).
Spend time testing and reviewing the survey. The survey flow may vary from one respondent
to another—for example, if a respondent doesn’t know a feature exists, you might
decide to skip the value questions about that feature and go directly to the next
section.

## **Conclusion: Building Your App Pricing Strategy**

How to cultivate a proposition that feels relevant and impossible for potential 
customers to overlook?

It’s a fine balance between gathering user insights from your apps and products 
and encouraging engagement through subscription models that generate revenue and
promotion for your brand(s) and product(s). As every app developer knows, **subscription
pricing** presents frequent but navigable challenges.

**Key Takeaways:**

 1. **Use MaxDiff analysis for feature prioritization:** This method leverages users’
    most valued elements against value propositions of their needs. Use this survey
    to structure your subscription tiers and determine what belongs behind your paywall.
 2. **Apply Van Westendorp’s Price Sensitivity Meter to find optimal pricing:** How
    much are users willing to pay for freemium-meets-subscription apps? This technique
    plots user sensitivity to price and indicates the optimal price point where your
    target audiences are willing to pay. 
 3. **Evaluate individual feature willingness to pay:** A simpler survey technique 
    that shouldn’t be overlooked—implement a deep-dive into paywalled features. Find
    out what features should sit firmly behind the paywall, and which features are 
    out in front attracting target users. 
 4. **Consider hybrid monetization for AI features:** With[ 35% of apps now mixing subscriptions with consumables or lifetime purchases](https://www.revenuecat.com/state-of-subscription-apps-2025/),
    survey users about their preferences for different monetization approaches, especially
    for AI-powered features with variable compute costs. 

## **Useful Resources**

 * [RevenueCat, “State of Subscription Apps 2025”](https://www.revenuecat.com/state-of-subscription-apps-2025/)
 * [Kumar, HBR, “Making Freemium Work”](https://hbr.org/2014/05/making-freemium-work)
 * [SurveyKing, “MaxDiff Analysis Explained: Survey Template + Examples”](https://www.surveyking.com/help/max-diff-analysis)
 * [SurveyKing, “Van Westendorp Pricing Model: How It Works & Examples”](https://www.surveyking.com/help/van-westendorp-analysis)
 * [Qualtrics, “An Introduction to MaxDiff”](https://www.qualtrics.com/blog/an-introduction-to-maxdiff/)
 * [SurveyMonkey, “How To Prioritize Features Using MaxDiff Analysis”](https://www.surveymonkey.com/market-research/resources/prioritize-features/)
 * [First Page Sage, “SaaS Freemium Conversion Rates Report”](https://firstpagesage.com/seo-blog/saas-freemium-conversion-rates/)

## **Before You Go**

 * [The Reach Audit Framework](https://phiture.com/reach-audit-framework/) is for
   Growth Marketers wanting to understand their reach to ensure they’re connecting
   with more users and generating a bigger impact. This resource will help you understand
   your opt-in rates and benchmark them against industry standards, in order to 
   identify possible drop-offs and opportunities to win-back users.
 * Both surveys and interviews are great tools to understand what people perceive
   as important. It is important to make a distinction between a user’s perceptions
   and their actions.[ In this article](https://phiture.com/mobilegrowthstack/how-to-translate-survey-results-into-actionable-insights/)
   we show how user research can inform on why people are – or aren’t – converting
   into installs.

Dynamic pricing is the practice of having multiple price points based on a few critical
factors.[ In this article](https://phiture.com/mobilegrowthstack/the-ethics-of-dynamic-pricing-the-good-the-bad-and-the-ugly/)
we run you through the do’s and don’ts of such pricing strategies, and show how 
to set one up using Braze.

## **Frequently Asked Questions:

**What is the difference between a freemium and a hard paywall subscription model?**

A freemium model allows users to access core features for free while reserving advanced
functionality behind a subscription. A hard paywall requires users to subscribe 
before accessing meaningful features. Hard paywalls often convert faster, but freemium
models can achieve strong results when feature packaging and pricing are executed
well.

**How can I decide which features should be behind a paywall?**
Feature placement
should be guided by user research. Methods like MaxDiff analysis help identify which
features users value most, while willingness-to-pay questions reveal which features
users are prepared to pay for. The goal is to protect high-value features without
weakening the free experience.

**What is MaxDiff analysis and why is it useful for subscription apps?**
MaxDiff
analysis is a survey technique that forces users to choose the most and least valuable
features from small sets. This produces clearer prioritisation than traditional 
rating scales and helps teams structure subscription tiers based on real user preferences.

**How does the Van Westendorp Price Sensitivity Meter help with pricing decisions?**

The Van Westendorp model measures how users perceive price by identifying thresholds
where a product feels too cheap, too expensive, or good value. It provides an acceptable
price range and helps identify the optimal price point for maximising conversion.

**How should apps approach pricing for AI-powered features?**
AI features often 
have variable and higher per-user costs. Many apps address this by introducing higher-
priced tiers, usage-based pricing, or hybrid monetisation models. Surveying users
separately about AI features helps ensure pricing reflects both perceived value 
and operational costs.

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