The app stores are growing exponentially every day, leading to competition among advertisers to make their app a shining star. One trend we’re beginning to see more of is the transition to a subscription-based app.
These subscription apps not only create exceptional experiences to keep users engaged, but also offer advertisers perks for using this payment model.
Benefits for Users and Advertisers
For users, subscription-based apps provide constant value and quality through improved user experience and updated content. On the advertiser side, this model offers auto-renewable subscriptions to make billing effortless. Apple even increases your net revenue from 70% to 85% of the subscription price after retaining a subscriber for one year. Nearly 30,000 iOS apps offer subscription options, so our mobile experts decided to dissect a rising question: How can apps successfully move to a subscription model?
Transition Starting Point
Giving users a taste of what makes your app valuable as a subscription model is a great starting point. You can test various free trial periods to determine what level drives the highest number of users converting to a paid model. Trying a variation of three to seven days will give users a good sense of your product, while still retaining the ideal reaction time to optimize your campaign. Trials closer to 30 days can often be too long for advertisers to be reactive and optimize toward the sources driving higher paid subscription conversions.
Subscription-Based Apps Can Drive Steady Revenue Flows
Because users pay monthly or annually, subscription-based apps see a steady revenue flow. They are likely to earn two to three times more than pay to download apps and 50% more than in-app purchase models. To obtain new subscribers, offer discounts for six to 12-month subscriptions. This incentive can further lock-in that reliable revenue for a longer period.
Don’t forget about users who have churned, too. Offer these users a discount for future subscriptions to encourage them to re-engage with your app.
If You Transition, Be Transparent
If you decide to transition to a subscription model, be clear with your users on these points:
- Why you’re changing
- Benefits of the new model
- Changes to current access
Being transparent boosts trust and, ultimately, engagement from users.
Find Support for Moving to a Subscription Model
Interested in moving to a subscription-based app? Tap our mobile marketing experts to make it seamless and easy. Contact us today to learn more.