Competitor Analysis

Splitwise Pro Research

Splitwise Pro: Conversion Research

Why 81% never upgrade: Uncovering the gap between Pro features and actual user needs

My Role

Solo UX Researcher

Duration

12 weeks

Methods

Product Analysis, Competitive Study, Surveys, Interviews

Participants

28 surveys, 4 interviews

Company

Splitwise

Deliverables

Research Report, Presentation

The Challenge

About Splitwise

A popular expense-sharing app helping groups track and settle shared costs. Despite strong user engagement with the free version, Pro conversion remains critically low.

Core Research Question

Is Splitwise Pro worth upgrading for users, and how can it offer more compelling value?

81%

Never considered upgrading

Research Methods

Product Analysis

To establish baseline understanding before investigating user perceptions.

Foundation set

Competitive Analysis

To benchmark against Venmo and Tricount, identifying gaps in positioning.

2 competitors

User Surveys

To quantify upgrade hesitation and feature value perceptions.

28 participants

User Interviews

To explore pain points and genuine upgrade motivators.

4 in-depth sessions

Competitive Landscape

Venmo

Strength: Seamless payment integration. Users settle debts without leaving the app.

Splitwise Gap: Lacks direct payments.

Tricount

Strength: Simple multi-currency tracking for international groups.

Splitwise Gap: Multi-currency behind paywall.

Splitwise Pro

Position: No clear competitive advantage. Features don't solve critical pain points.

Opportunity: Massive room for improvement.

Key Survey Findings

Most valued Pro features?

52%

Ad-free experience
(Receipt scanning: 43%)

Biggest upgrade barrier?

43%

Unclear benefits
(Cost: only 19%)

Want Pro features free?

76%

Yes (Unlimited entries, currency conversion)

Would pay for real solutions?

67%

If Pro solved actual pain points

Interview Insights

Pro = Cosmetic Upgrades

Users see Pro as nice-to-have, not need-to-have. Current features don't solve actual problems.

Payment Integration Critical

Direct Venmo/PayPal integration most requested. Leaving the app to settle = friction.

Trip Tracking Missing

Users manually organize by trip but want native support. Major workflow gap.

Ads Annoying, Not Motivating

Users tolerate ads rather than pay. Ad frustration alone doesn't drive upgrades.

Automation Opportunity

AI bill splitting and payment reminders could differentiate Pro. Users want intelligence.

Value Communication Failed

Users don't understand what Pro offers or why they'd need it. Messaging problem.

Critical Insight

The Value Proposition Problem

Pro addresses wants (ad-free, unlimited entries) but ignores critical needs (payment integration, trip tracking, automation). Users need Pro to solve real pain points, not offer cosmetic upgrades. This explains the 81% upgrade resistance.

Strategic Recommendations

Redesign Pro Feature Set

Prioritize payment integration, trip organization, and automation over cosmetic additions.

Fix Pro Messaging

Create benefit-focused messaging showing how Pro solves daily frustrations.

Trial-Based Conversion

Let users experience Pro's value through limited-time trials before committing.

Smart Automation

AI expense categorization and payment reminders users can't get elsewhere.

Payment Integration

Partner with Venmo and PayPal for in-app settlement—addressing #1 request.

Refine Ad Strategy

Improve placement to reduce frustration while motivating upgrades.

Reflections

What Worked Well

Competitive analysis first

Starting with competitor research helped spot blind spots Splitwise missed, providing context for user complaints.

Small sample sufficiency

4 interviews revealed clear patterns. Quality over quantity when insights converge strongly.

Survey-then-interview sequence

Surveys tested hypotheses, then interviews explored them deeply with validated direction.

What Didn't Work

Missing Pro user perspective

Should have recruited actual Pro subscribers to understand why they DO pay. Missing the success story angle.

No pricing sensitivity test

Didn't validate the $2.99 price point. Could the price itself be the issue, not the features?

Support team blind spot

Should have interviewed customer support earlier. They hear daily frustrations and could have accelerated problem identification.

Next Research Questions

1. Pro User Perspective

Why do the <1% who DO upgrade choose Pro? Understanding what works would balance findings about what doesn't.

2. Churn Analysis

At what point do users abandon Splitwise for competitors? The trigger moment reveals priority pain points.

3. Trial Experimentation

Would freemium trial increase conversions? Testing whether exposure drives upgrades or if features are the real issue.

This project was completed as part of my UX Research project. While Splitwise was not involved in this research,
findings are based on real user data and industry best practices.