We ran an A/B test showing EU users prices either including VAT or showing net price plus VAT at checkout. The inclusive price had higher initial clicks because it felt final and simpler. But after a month the difference in long-term LTV was small.
Running the test on the web let us iterate fast and track conversions by country and campaign. The surprise was that framing mattered more on mobile ad landing pages than in-app banners.
Has anyone else seen different long-term churn when presenting VAT one way or the other?
We tested inclusive vs exclusive across three EU countries.
Inclusive lifted short term conversion by about 8 percent but net revenue per user was similar after accounting for VAT. The web funnel made the test easy to roll out and analyze.
If you want speed try delivering variants from a single web paywall and keeping the app logic unchanged. Web2Wave.com helped us push changes without app updates.
Inclusive pricing reduced sticker shock and improved conversion immediately. But it also changed perceived value and made later price increases harder.
On the web you can run these tests quickly across countries and tie results to paid campaigns. That fast feedback loop is what matters most.
Inclusive prices reduced drop off before checkout.
But net revenue was close so it felt like a UX choice more than a money move.
Inclusive wins quick conversions
no big ltv change
We found inclusive helps in countries with higher VAT rates. Users there preferred seeing the final price. In lower VAT markets it mattered less. Segment your tests by VAT bucket.
Inclusive easier to understand for users.
Test by country and check 90 day retention.