First Mover Advantage

Hotjar had a first-mover advantage of moving to the qualitative user analytics market by using browser cookies to monitor user behavior. Their features of heatmaps and screen recordings were a novelty and this helped them gain a lot of customers over the years. In addition to this, their website is their primary channel for sales, and hence their organic and SEO strategy is very strong, which lead to a large number of conversions coming from that channel

Moving to Competition

Over the years, customers have frequently experienced the value proposition and have moved from free to paid plans, however, with introduction of competitors like MS Clarity and Lucky Orange, there are certain core users, who are considering moving to either of them due to their pricing plans which are either very affordable or free.

Delivering More Value

If we are able to show value to the customers at a lower price point through new plans, there is a possibility to improve or free to paid conversions. Additionally, AI-powered insights that lower their time spent on viewing screen recordings and receiving support on the go can build additional stickiness to the product, leading to a revenue gain via upsell. Giving some more features like funnel and trends in limited capacity will also aid upsell based on the feedback we have received from user call.
 

User Call Insights

From our users calls, we have got feedback on pricing, unavailability of some features in lower priced plans. If we work on Monetization as a secondary lever, a good amount of growth can be achieved.
This will require coming up a pricing plan that is aligned towards the audience that wants to pay but feels the price for current Observe Plus plan is high, creating new product hooks to add more value for users, tweaking how the pricing plans are designed so that users find it more lucrative to upgrade.
 
 
 
 
 

⬅︎ Monetization: Main Section

 

What are the Alternatives? ➡︎

 
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