# Gift category dropdown in a cleaner layout: +57% ARPU

- Outcome: Won
- Page type: Other (SaaS)
- Elements: Navigation, Layout
- Date shared: 2020
- Test run by: [VWO](https://liftarchive.com/practitioners/vwo/)
- Commentary by: LiftArchive (our analysis, not theirs)
- Original source: https://wingify.com/success-stories/paltalk/
- Page: https://liftarchive.com/test/paltalk-virtual-gift-category-dropdown/

Paltalk's cleaner virtual gift store, with a left-side dropdown of categories that showed every gift in the chosen one, raised conversion rate by 11.32% and average revenue per user by 57.32%. Wingify Services ran the test with Paltalk's team, and it was published as a VWO case study. It ran 30 days with a 50/50 split.

## Result

**+57% ARPU**

- Conversion rate: +11.32%.
- Average revenue per user (ARPU): +57.32%.
- Total revenue: about USD 21,000 extra during the 30-day test. The new version is now live for all users.
- No confidence level was shared.

## Control

Gift categories were hard to see, and users had to scroll sideways to view all gifts within a category.

## Variant

A cleaner layout put a dropdown of gift categories on the left. Picking one showed all gifts in that category at once.

## Why it likely won (our reading)

- Heatmaps and recordings showed users weren't finding categories. Making them visible lets users reach more of the range.
- Showing all gifts at once removes sideways scrolling, so gifts that were hidden off-screen can now be seen and bought.
- The ARPU jump is much bigger than the conversion lift, which suggests users who bought spent more, perhaps on gifts they hadn't seen before.

## Caveats

This is an in-app digital purchase flow for a social platform. The layout was also cleaned up beyond the dropdown, and results are vendor-reported without significance figures.

## How to run this test

- Hypothesis: If we list all categories in a visible menu and show every item in the chosen category without sideways scrolling, then more users will buy and spend more because they can see the full range.
- Primary metric: Revenue per user
- Guardrail: Purchase conversion rate
- Guardrail: Time to first purchase
- Who should test it: SaaS and app businesses with an in-product store, add-on catalog or template gallery that uses carousels. It matters less when the catalog is small enough to show on one screen.

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Credit: VWO ran this test and owns the result. Summary and commentary by LiftArchive (https://liftarchive.com/test/paltalk-virtual-gift-category-dropdown/).
Usage: Free to use, quote and build on, with credit and a link: name the practitioner or organization that ran the test and link to its LiftArchive page. The results belong to the practitioners who ran and shared them; the summaries and commentary are LiftArchive's.