Increasing Mobile Subscription Revenue

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11

Andy Carvell (Partner at Phiture - Mobile Growth Consultancy) breaks down some key approaches to improve LTV through subscriptions. Using case studies and real examples from popular apps.

Source:
Increasing Mobile Subscription Revenue
(no direct link to watch/listen)
(direct link to watch/listen)
Type:
Presentation
Publication date:
June 2, 2020
Added to the Vault on:
June 6, 2020
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💎 #
1

Trying to avoid the app stores' tax is probably not worth it if you are not a big player. You need to figure out how to reduce the friction it creates and how not to get kicked out of the store. You also have to handle payment processing, refund, etc. 

06:35
💎 #
2

You want to know not just who subscribes but also who cancels and who asks for a refund (and when) because it makes a very big difference as to how valuable a user appears when you make your calculations (e.g. LTV) (check out this slide)

07:50
💎 #
3

You can create custom upsell pages (paywalls) for different segments of customers.  

11:46
💎 #
4

There are different indications of intent from users to become a paid subscriber based on their activity in the app: indirect intent, direct intent and abandoned cart. 

12:20
💎 #
5

In your free tier, have several CTAs inviting to use a feature only subscribers have access to and clearly mark it (example: lock icon with "Subscribe to unlock"). This way you'll be able to identify the users that showed interest. 

14:50
💎 #
6

Use "abandoned cart"-type tactics (personalized approach, discount, etc.) for users that interacted with the paywall (i.e. swipes, selecting a price package, etc.) even if they did not try to start the subscription (i.e. hitting "subscribe now" button). 

16:52
💎 #
7

To increase your subscription conversion rate, segment and personalize your paywall messaging depending on the intent level that they've shown:
- High intent → show them stuff tied to what they've shown interest in
- Indirect intent only → less signal so pitch the most popular stuff (unless you ran an onboarding survey or questionnaire) (Check out this slide)

17:46
💎 #
8

When getting started on pricing or when reconsidering pricing, survey users to know what they would be willing to pay. Do this per market as you can see big differences based on geo. 

19:52
💎 #
9

If you have users that are willing to pay a lot, give them a platinum option. It can be an expensive lifetime option for example. This also makes other plans look cheaper. 

20:15
💎 #
10

A lot of the subscriptions happen very early on in the lifecycle (often the first 24h). Discounts and coupons can be a very valuable way to get more people across the line if they don't convert early. 

21:06
💎 #
11

Do not wait until users go dormant. If you can't/don't build a fancy machine-learning churn predictor, keep an eye on your analytics to observe signs of dropping off to create a segment of users whose activity is declining so you can target them (potentially with more drastic tactics).  

25:07
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💎 #
1

Trying to avoid the app stores' tax is probably not worth it if you are not a big player. You need to figure out how to reduce the friction it creates and how not to get kicked out of the store. You also have to handle payment processing, refund, etc. 

06:35
💎 #
2

You want to know not just who subscribes but also who cancels and who asks for a refund (and when) because it makes a very big difference as to how valuable a user appears when you make your calculations (e.g. LTV) (check out this slide)

07:50
💎 #
3

You can create custom upsell pages (paywalls) for different segments of customers.  

11:46
💎 #
4

There are different indications of intent from users to become a paid subscriber based on their activity in the app: indirect intent, direct intent and abandoned cart. 

12:20
💎 #
5

In your free tier, have several CTAs inviting to use a feature only subscribers have access to and clearly mark it (example: lock icon with "Subscribe to unlock"). This way you'll be able to identify the users that showed interest. 

14:50
💎 #
6

Use "abandoned cart"-type tactics (personalized approach, discount, etc.) for users that interacted with the paywall (i.e. swipes, selecting a price package, etc.) even if they did not try to start the subscription (i.e. hitting "subscribe now" button). 

16:52
💎 #
7

To increase your subscription conversion rate, segment and personalize your paywall messaging depending on the intent level that they've shown:
- High intent → show them stuff tied to what they've shown interest in
- Indirect intent only → less signal so pitch the most popular stuff (unless you ran an onboarding survey or questionnaire) (Check out this slide)

17:46
💎 #
8

When getting started on pricing or when reconsidering pricing, survey users to know what they would be willing to pay. Do this per market as you can see big differences based on geo. 

19:52
💎 #
9

If you have users that are willing to pay a lot, give them a platinum option. It can be an expensive lifetime option for example. This also makes other plans look cheaper. 

20:15
💎 #
10

A lot of the subscriptions happen very early on in the lifecycle (often the first 24h). Discounts and coupons can be a very valuable way to get more people across the line if they don't convert early. 

21:06
💎 #
11

Do not wait until users go dormant. If you can't/don't build a fancy machine-learning churn predictor, keep an eye on your analytics to observe signs of dropping off to create a segment of users whose activity is declining so you can target them (potentially with more drastic tactics).  

25:07
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💎 #
1

Trying to avoid the app stores' tax is probably not worth it if you are not a big player. You need to figure out how to reduce the friction it creates and how not to get kicked out of the store. You also have to handle payment processing, refund, etc. 

06:35
💎 #
2

You want to know not just who subscribes but also who cancels and who asks for a refund (and when) because it makes a very big difference as to how valuable a user appears when you make your calculations (e.g. LTV) (check out this slide)

07:50
💎 #
3

You can create custom upsell pages (paywalls) for different segments of customers.  

11:46
💎 #
4

There are different indications of intent from users to become a paid subscriber based on their activity in the app: indirect intent, direct intent and abandoned cart. 

12:20
💎 #
5

In your free tier, have several CTAs inviting to use a feature only subscribers have access to and clearly mark it (example: lock icon with "Subscribe to unlock"). This way you'll be able to identify the users that showed interest. 

14:50
💎 #
6

Use "abandoned cart"-type tactics (personalized approach, discount, etc.) for users that interacted with the paywall (i.e. swipes, selecting a price package, etc.) even if they did not try to start the subscription (i.e. hitting "subscribe now" button). 

16:52
💎 #
7

To increase your subscription conversion rate, segment and personalize your paywall messaging depending on the intent level that they've shown:
- High intent → show them stuff tied to what they've shown interest in
- Indirect intent only → less signal so pitch the most popular stuff (unless you ran an onboarding survey or questionnaire) (Check out this slide)

17:46
💎 #
8

When getting started on pricing or when reconsidering pricing, survey users to know what they would be willing to pay. Do this per market as you can see big differences based on geo. 

19:52
💎 #
9

If you have users that are willing to pay a lot, give them a platinum option. It can be an expensive lifetime option for example. This also makes other plans look cheaper. 

20:15
💎 #
10

A lot of the subscriptions happen very early on in the lifecycle (often the first 24h). Discounts and coupons can be a very valuable way to get more people across the line if they don't convert early. 

21:06
💎 #
11

Do not wait until users go dormant. If you can't/don't build a fancy machine-learning churn predictor, keep an eye on your analytics to observe signs of dropping off to create a segment of users whose activity is declining so you can target them (potentially with more drastic tactics).  

25:07
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Notes for this resource are currently being transferred and will be available soon.

If you don't know about it, check out Phiture's Mobile Growth Stack.

Intro to subscription apps

More and more apps are trying the subscription model in 2020.

Apps that can offer new, fresh content on a regular basis are more suitable for the subscription model. Example: content platforms, meditation apps, fitness apps, etc.



Avoiding the tax

Apple & Google take 30% of 1st year revenue, 15% from year 2.

You are not allowed to offer (or mention) alternative subscription methods in the app so some apps offer subs only through their website.


[💎@06:35] Trying to avoid the tax is probably not worth it if you are not a big player. You need to figure out how to reduce the friction it creates and how not to get kicked out of the store. You also have to handle payment processing, refund, etc.


Measuring subscription revenues

Andy mentions Jakub Chour's App Pricing Optimization guide.


[💎@07:50] You want to know not just who subscribes but also who cancels and who asks for a refund (and when) because it makes a very big difference as to how valuable a user appears when you make your calculations (e.g. LTV)

Measuring just a purchase event is not usual, but counting refunds to LTV is not something I’m used to seeing in revenue dashboards.

Some tools like RevenueCat can help you with this kind of things.


Strategies to increase sub revenues

How you can lever different things to increase revenue:

  • CRO (Conversion Rate Optimization) to get more people to opt-in to trial or subscribe
  • Price test and play around with different tiers, price models or different price levels
  • Retention efforts to increase the average subscription lifetime


CRO for subscriptions

Work on your core upsell/paywall page - Andy mentions this article by Michal Langmajer.

Talk about the benefits that your subscription is going to bring

[💎@11:46] You can create custom upsell pages (paywalls) for different segments of customers. But you can also get a lot of extra value (conversions) by personalizing the messaging that drives customers to the paywall (email, push, etc.).


[💎@12:20] There are different indications of intent from users to become a paid subscriber based on their activity in the app: indirect intent, direct intent and abandoned cart.

  • Indirect intent - user does something a lot and would have better experience with premium account
  • Direct intent - user tried to access the paywalled content
  • Indirect intent x direct intent - mix of the 2 above
  • Abandoned cart - user initiates purchase but does not complete the process


This is valid if you have a free tier and not pushing directly into paying for the app because otherwise you can't really learn about the user's behavior.

[💎@14:50] In your free tier, have several CTAs inviting to use a feature only subscribers have access to and clearly mark it (example: lock "Subscribe to unlock"). You'll be able to identify the users that showed interest.



[💎@16:52] Use "abandoned cart"-type tactics (personalized approach, discount, etc.) for users that interacted with the paywall (i.e. swipes, selecting a price package, etc.) even if they did not try to start the subscription (i.e. hitting "subscribe now" button).


  • [💎@17:46] To increase your subscription conversion rate, segment and personalize messaging depending on the intent level that they've shown:
  • High intent → show them stuff tied to what they shown interest in
  • Indirect intent only → less signal so pitch the most popular stuff unless you run a survey or questionnaire at onboarding



For personalized in-app messages, you can use Phiture's tool Blender.


Price testing for app subscription

[💎@19:52] When getting started on pricing or when reconsidering pricing, survey users to know what they would be willing to pay. Do this per market as you can see big differences based on geo.

[💎@20:15] If you have users that are willing to pay a lot, give them a platinum option. It can be an expensive lifetime option for example. This also makes other plans look cheaper.

App-pricing-points.jpeg


[💎@21:06] A lot of the subscriptions happen very early on in the lifecycle (often the first 24h). Discounts and coupons can be a very valuable way to get more people across the line if they don't convert early.


Try to keep users active throughout subscription with regular new content, lifecycle marketing, activity notifications and reminders of the benefits they get from subscription. Don't employ the "ostrich strategy" where you just hope they will renew.



Subscriber retention efforts can really extend your LTV.


[💎@25:07] If you can't/don't build a fancy machine-learning churn predictor, keep an eye on your analytics to observe signs of dropping off to create a segment of users whose activity is declining so you can target them (potentially with more drastic tactics). Do not wait until they are dormant.


Q&A

Is monthly or yearly more profitable?

  • Usually shorter subscriptions are more profitable so monthly usually goes better
  • Yearly allows to charge upfront so great from a cashflow perspective but often discounted heavily 


The notes from this resource are only available to premium members.
↘ At this point, you know what to do ↙
Upgrade Your Plan

If you don't know about it, check out Phiture's Mobile Growth Stack.

Intro to subscription apps

More and more apps are trying the subscription model in 2020.

Apps that can offer new, fresh content on a regular basis are more suitable for the subscription model. Example: content platforms, meditation apps, fitness apps, etc.



Avoiding the tax

Apple & Google take 30% of 1st year revenue, 15% from year 2.

You are not allowed to offer (or mention) alternative subscription methods in the app so some apps offer subs only through their website.


[💎@06:35] Trying to avoid the tax is probably not worth it if you are not a big player. You need to figure out how to reduce the friction it creates and how not to get kicked out of the store. You also have to handle payment processing, refund, etc.


Measuring subscription revenues

Andy mentions Jakub Chour's App Pricing Optimization guide.


[💎@07:50] You want to know not just who subscribes but also who cancels and who asks for a refund (and when) because it makes a very big difference as to how valuable a user appears when you make your calculations (e.g. LTV)

Measuring just a purchase event is not usual, but counting refunds to LTV is not something I’m used to seeing in revenue dashboards.

Some tools like RevenueCat can help you with this kind of things.


Strategies to increase sub revenues

How you can lever different things to increase revenue:

  • CRO (Conversion Rate Optimization) to get more people to opt-in to trial or subscribe
  • Price test and play around with different tiers, price models or different price levels
  • Retention efforts to increase the average subscription lifetime


CRO for subscriptions

Work on your core upsell/paywall page - Andy mentions this article by Michal Langmajer.

Talk about the benefits that your subscription is going to bring

[💎@11:46] You can create custom upsell pages (paywalls) for different segments of customers. But you can also get a lot of extra value (conversions) by personalizing the messaging that drives customers to the paywall (email, push, etc.).


[💎@12:20] There are different indications of intent from users to become a paid subscriber based on their activity in the app: indirect intent, direct intent and abandoned cart.

  • Indirect intent - user does something a lot and would have better experience with premium account
  • Direct intent - user tried to access the paywalled content
  • Indirect intent x direct intent - mix of the 2 above
  • Abandoned cart - user initiates purchase but does not complete the process


This is valid if you have a free tier and not pushing directly into paying for the app because otherwise you can't really learn about the user's behavior.

[💎@14:50] In your free tier, have several CTAs inviting to use a feature only subscribers have access to and clearly mark it (example: lock "Subscribe to unlock"). You'll be able to identify the users that showed interest.



[💎@16:52] Use "abandoned cart"-type tactics (personalized approach, discount, etc.) for users that interacted with the paywall (i.e. swipes, selecting a price package, etc.) even if they did not try to start the subscription (i.e. hitting "subscribe now" button).


  • [💎@17:46] To increase your subscription conversion rate, segment and personalize messaging depending on the intent level that they've shown:
  • High intent → show them stuff tied to what they shown interest in
  • Indirect intent only → less signal so pitch the most popular stuff unless you run a survey or questionnaire at onboarding



For personalized in-app messages, you can use Phiture's tool Blender.


Price testing for app subscription

[💎@19:52] When getting started on pricing or when reconsidering pricing, survey users to know what they would be willing to pay. Do this per market as you can see big differences based on geo.

[💎@20:15] If you have users that are willing to pay a lot, give them a platinum option. It can be an expensive lifetime option for example. This also makes other plans look cheaper.

App-pricing-points.jpeg


[💎@21:06] A lot of the subscriptions happen very early on in the lifecycle (often the first 24h). Discounts and coupons can be a very valuable way to get more people across the line if they don't convert early.


Try to keep users active throughout subscription with regular new content, lifecycle marketing, activity notifications and reminders of the benefits they get from subscription. Don't employ the "ostrich strategy" where you just hope they will renew.



Subscriber retention efforts can really extend your LTV.


[💎@25:07] If you can't/don't build a fancy machine-learning churn predictor, keep an eye on your analytics to observe signs of dropping off to create a segment of users whose activity is declining so you can target them (potentially with more drastic tactics). Do not wait until they are dormant.


Q&A

Is monthly or yearly more profitable?

  • Usually shorter subscriptions are more profitable so monthly usually goes better
  • Yearly allows to charge upfront so great from a cashflow perspective but often discounted heavily 


The notes from this resource are only available to premium members.

The detailed notes taken for a resource are an easy way to see the gems in context to get a better understanding. They also include any relevant visuals from the source.
↘ At this point, you know what to do ↙
GET Access

If you don't know about it, check out Phiture's Mobile Growth Stack.

Intro to subscription apps

More and more apps are trying the subscription model in 2020.

Apps that can offer new, fresh content on a regular basis are more suitable for the subscription model. Example: content platforms, meditation apps, fitness apps, etc.



Avoiding the tax

Apple & Google take 30% of 1st year revenue, 15% from year 2.

You are not allowed to offer (or mention) alternative subscription methods in the app so some apps offer subs only through their website.


[💎@06:35] Trying to avoid the tax is probably not worth it if you are not a big player. You need to figure out how to reduce the friction it creates and how not to get kicked out of the store. You also have to handle payment processing, refund, etc.


Measuring subscription revenues

Andy mentions Jakub Chour's App Pricing Optimization guide.


[💎@07:50] You want to know not just who subscribes but also who cancels and who asks for a refund (and when) because it makes a very big difference as to how valuable a user appears when you make your calculations (e.g. LTV)

Measuring just a purchase event is not usual, but counting refunds to LTV is not something I’m used to seeing in revenue dashboards.

Some tools like RevenueCat can help you with this kind of things.


Strategies to increase sub revenues

How you can lever different things to increase revenue:

  • CRO (Conversion Rate Optimization) to get more people to opt-in to trial or subscribe
  • Price test and play around with different tiers, price models or different price levels
  • Retention efforts to increase the average subscription lifetime


CRO for subscriptions

Work on your core upsell/paywall page - Andy mentions this article by Michal Langmajer.

Talk about the benefits that your subscription is going to bring

[💎@11:46] You can create custom upsell pages (paywalls) for different segments of customers. But you can also get a lot of extra value (conversions) by personalizing the messaging that drives customers to the paywall (email, push, etc.).


[💎@12:20] There are different indications of intent from users to become a paid subscriber based on their activity in the app: indirect intent, direct intent and abandoned cart.

  • Indirect intent - user does something a lot and would have better experience with premium account
  • Direct intent - user tried to access the paywalled content
  • Indirect intent x direct intent - mix of the 2 above
  • Abandoned cart - user initiates purchase but does not complete the process


This is valid if you have a free tier and not pushing directly into paying for the app because otherwise you can't really learn about the user's behavior.

[💎@14:50] In your free tier, have several CTAs inviting to use a feature only subscribers have access to and clearly mark it (example: lock "Subscribe to unlock"). You'll be able to identify the users that showed interest.



[💎@16:52] Use "abandoned cart"-type tactics (personalized approach, discount, etc.) for users that interacted with the paywall (i.e. swipes, selecting a price package, etc.) even if they did not try to start the subscription (i.e. hitting "subscribe now" button).


  • [💎@17:46] To increase your subscription conversion rate, segment and personalize messaging depending on the intent level that they've shown:
  • High intent → show them stuff tied to what they shown interest in
  • Indirect intent only → less signal so pitch the most popular stuff unless you run a survey or questionnaire at onboarding



For personalized in-app messages, you can use Phiture's tool Blender.


Price testing for app subscription

[💎@19:52] When getting started on pricing or when reconsidering pricing, survey users to know what they would be willing to pay. Do this per market as you can see big differences based on geo.

[💎@20:15] If you have users that are willing to pay a lot, give them a platinum option. It can be an expensive lifetime option for example. This also makes other plans look cheaper.

App-pricing-points.jpeg


[💎@21:06] A lot of the subscriptions happen very early on in the lifecycle (often the first 24h). Discounts and coupons can be a very valuable way to get more people across the line if they don't convert early.


Try to keep users active throughout subscription with regular new content, lifecycle marketing, activity notifications and reminders of the benefits they get from subscription. Don't employ the "ostrich strategy" where you just hope they will renew.



Subscriber retention efforts can really extend your LTV.


[💎@25:07] If you can't/don't build a fancy machine-learning churn predictor, keep an eye on your analytics to observe signs of dropping off to create a segment of users whose activity is declining so you can target them (potentially with more drastic tactics). Do not wait until they are dormant.


Q&A

Is monthly or yearly more profitable?

  • Usually shorter subscriptions are more profitable so monthly usually goes better
  • Yearly allows to charge upfront so great from a cashflow perspective but often discounted heavily