How and what to charge

Hotjar’s current Pricing Plan

Hotjar Observe

Category	Primary Goal	Plan	Price Per Month (Billed Annually)	What User get	Key features Included	Core Segment
Key Features	Visualize user behavior with Heatmaps and see what your users see with Recordings	Basic	$0 USD/ forever	Up to 35 daily sessions	- Automatic data capture- Unlimited heatmaps
Plus	$32USD/ month	Up to 100 daily sessions	Everything in Basic, and:- Filter and segment data - Events API: track custom user actions
Business	$80USD/ month	Min 500 (and up to 270K Sessions Daily at additional cost)	Everything in Plus, and:- Custom-built integrations - Identify API: track custom user attributes - Frustration and confusion signals
Scale	$171USD/ month	Min 500 (and up to 270K Sessions Daily at additional cost)	Everything in Business, and:- Funnels - Trends - Console tracking (Errors) - Hotjar API - SAML single sign-on (SSO) - Dedicated customer success manager* - Priority support* - Full access to every feature
Other Inclusions	- All Observe plans include unlimited team members, data storage for 365 days, and a 30-day money-back guarantee.- By subscribing to any of our Observe plans, you automatically have access to Ask and Engage Basic.

Hotjar Ask

Category	Primary Goal	Plan	Price Per Month (Billed Annually)	What User get	Key features Included	Core Segment
Key Features	Discover how your users feel with Feedback & hear from your users with Surveys	Basic	$0USD/ forever	Up to 20 monthly responses	- Create and store 3 surveys & 3 feedback widgets - Feedback in 40+ languages - Unlimited questions per survey
Plus	$48USD/ month	Up to 250 monthly responses	Everything in Basic, and:- Create unlimited surveys & feedback widgets - Events API: target survey & feedback widgets by custom user actions
Business	$64USD/ month	Min 500 (and up to 100K monthly responses at additionall cost)	Everything in Plus, and:- Identify API: target feedback by custom user attributes - Remove Hotjar branding and customize colours - Analyze survey performance - Custom-built integrations
Scale	Let's talk		Everything in Business, and:- Dedicated customer success manager - Hotjar API - SAML single sign-on (SSO) - Full access to every feature
Other Inclusions	- All Ask plans include unlimited team members, data storage for 365 days, and a 30-day money-back guarantee.- By subscribing to any of our Ask plans, you automatically have access to Observe and Engage Basic.

Hotjar Engage

Category	Primary Goal	Plan	Price Per Month (Billed Annually)	What User get	Key features Included	Core Segment
Hotjar Engage	Automate the recruitment, scheduling, and hosting of moderated user interviews.	Basic	$0USD/ forever	Up to 6 interviews	Access to:- 1 free interview from the Hotjar participant pool (incl. €20 compensation) - Up to 5 interviews/month from your own network - Up to 30-minute interview - 1 co-moderator/interview - 1 spectator/interview - 2 weeks' recording retention
Plus	$280USD/ month	Up to 15 interviews	Everything in Basic, and:- Up to 5 interviews/month from the Hotjar participant pool - Up to 10 interviews/month from your network - Up to 30-minute interviews - Reward participants up to €50/interview - 1 co-moderator/interview - 1 spectator/interview - 2 years' recording retention
Business	$440USD/ month	Up to 30 interviews	Everything in Plus, and:- Up to 10 interviews/month from the Hotjar participant pool - Up to 20 interviews/month from your network - Up to 60-minute interviews - Reward participants up to €100/interview - 2 co-moderators/interview - 2 spectators/interview
Scale	Let's talk		Everything in Business, and:- Up to 20 interviews/month from the Hotjar participant pool - Up to 40 interviews/month from your network - Up to 120-minute interviews - Reward participants up to €150/interview - 4 co-moderators/interview - 10 spectators/interview - Dedicated customer success manager - SAML single sign-on (SSO) - Full access to every feature
Other Inclusions	- All Engage plans include unlimited team members, and a 30-day money back guarantee.- By subscribing to any of our Engage plans you automatically get access to Observe and Ask Basic.
ㅤ	ㅤ	ㅤ	ㅤ	ㅤ	ㅤ	ㅤ
Hotjar Custom Plan		- Hotjar Also offers a custom plan based on the user needs.

Hotjar Custom Plan

💵

Step 1: Hotjar Observe (choose any 1)

Step 2: Hotjar Ask (choose any 1)

Step 3: Checkout with Discounts

Individual Annual Plan: 20% discount

Package Selection Discount: Additional 20%

New pricing variations

For Startups & Growing Companies

Goal

To covert Free Plan Users to Grow plan users

Approach

Reduce the entry barrier by creating New Tier, especially for this segment. This Plan is curated for the Core user (Free Plan) of this segment who have been using this Product for at least 6 months.

New Pricing Tier with Features

	Basic -Get started with Observe essentials	Grow -Observe for Startups and Growing Companies	Plus -Observe for small teams, more traffic and tools
Pricing	$ 0 Forever	$ 16 / Month	$ 32 / Month
Number of Sessions	Up to 35 daily Sessions	Up to 50 daily Sessions	Up to 100 daily Sessions
Features	- Automatic data capture	- Automatic data capture	- Automatic data capture
	- Unlimited heatmaps	- Unlimited heatmaps	- Unlimited heatmaps
		- Filter and segment data	- Filter and segment data
		- Assist (New Feature)	- Events API: track custom user actions

Free Trial Strategy

What Hotjar is charging for

💡

Charging for Efficiency: Hotjar charges for enhancing efficiency by offering features like filter and segment data, funnels to segregate users in the top, middle, and bottom funnel, and Assist - AI Powered Support. These features can save users' time and effort, making the product more valuable to them.

30 days Free Trial of the features offered to this cohort

To encourage users to experience the most valuable features of the proposed plan that can improve the existing metrics.

If they experience the AHA moment, they can upgrade to the Paid Plan specially curated for them

If they choose not to upgrade at the end of the trial, they will be downgraded to the previous plan.

The frequency of offering such a trial is one per year.

✅

Experience Valuable Features: The 30-day free trial will give users access to premium features that are unavailable on the free plan. By utilizing these features, they may experience the 'Aha!' moment - the realization of the full potential and value of the product. This could catalyze their decision to upgrade to the paid plan.

⏪

Opt-out Option: If users decide that the paid features do not significantly benefit them, they can opt-out and revert to their previous plan. This flexibility decreases the risk associated with the free trial, as users do not feel pressured to make a permanent commitment.

⏰

Limited Frequency: Limiting the free trial to once per year retains its exclusivity and prevents misuse. It also creates a sense of urgency, encouraging users to make the most of their trial period.

Rationale

We believe that Hotjar’s Core users (even on the Free Plan) are happy using the product and don’t want to move out to a free product like MS Clarity which is offering more features.

If we offer them to experience key features like a filter which increases their efficiency, these users will upgrade to paid plan given the high perceived value. By allowing users to experience the benefits of a higher-tier plan for a limited time, they may be more likely to upgrade to a paid plan to avoid losing access to those features.

💡

User Satisfaction: Core users of Hotjar have demonstrated satisfaction with the product, even on the free plan. This loyalty may make them more open to trying premium features, and eventually moving to a paid plan.

💡

Higher Efficiency and Conversion Rate: By introducing features like data filtering, segmentation, and Assist - AI Powered Support, users' efficiency can be significantly improved. This increased productivity may positively impact their Conversion Rate, further strengthening the perceived value of the paid plan.

Reason for choosing this plan

Hotjar’s Paid plan starts from $32/Month (if billed Annually)

User Insights

As per User Insights gathered, it is discovered that 56% of the core users are on Free Plan and have been using the product on daily basis. They have experienced the Core Value Proposition however shared that the pricing is on high side in comparison to the available options in the market.

Growth Model Impact

Since this is a new pricing tier and only available for Potential Loyalists and above of the segment, it will not have any reducing impact on the current ARPA. With 5% conversion, a total of 1528 users will opt for this plan and the total expected revenue is $148,000 post considerations of 45% churn.

Risk

Price Point Leakage: There's a potential risk that information about the new price point could leak on social media. This could possibly lead to existing customers requesting the new price, potentially leading to a temporary loss in revenue. However, this loss will be outweighed by the increase in new paid users.

Experimentation

Hypothesis

✅

Understanding the Value Proposition: Hotjar’s core users understand Hotjar’s value proposition and would be willing to upgrade to a paid plan, if key features, that increase efficiency and alleviate current pain points, are included. With a carefully structured pricing strategy and a user-focused approach, we hypothesize that the introduction of this new tier will successfully convert a substantial percentage of our core free users into paying customers.

Determining Pricing

Start up with 0-50 employees and < INR 10Mn Turnover	Response
Are you willing to pay for the product if a new AI-powered feature will summarize key insights from heatmaps and screen recordings to help you draw conclusions?	Yes
Will you pay for the feature which will save your time and help achieve efficiency?	Yes
Are you willing to pay if you get feature like Filters which will help you improve Conversion Metric?	Yes/No
How much are you willing to pay for One of above features with up to 50 daily Sessions?	Options: 1. $10/Mo 2. $15/Mo 3. $20/Mo 4. Not required
How much are you willing to pay for all of above features with up to 50 daily Sessions?	Options: 1. $15/Mo 2. $20/Mo 3. $25/Mo 4. Not required

Our reasoning for arriving at the above pricing tier:

Competitor’s pricing overview

Three of the Key Global Competitors of Hotjar are offering Price Tier for Startups

	Competitor	Name of the Pricing Tier That Exists in this Category (Start Ups)	Price Offered (Billed Annually)	Price Offered (Billed Annually)
1	LuckyOrange	Yes, Build Plan	$14/Month	$18/Month
2	MixPanel	Yes, Growth		$20/Month

Detailed Pricing - LuckyOrange

b. MixPanel offers $20+ per month for to address this segment