Dan Burcaw is Co-Founder & CEO of Nami ML. He built a top mobile app development agency responsible for some of the most elite apps on the App Store and then found himself inside the mobile marketing industry after selling his last company to Oracle.
Alternative payments are finally here for the App Store. At least in South Korea, with a number of important caveats.
On March 15, 2022, detailed rules from the Korea Communications Commission went into effect preventing Apple and Google from mandating that app developers have to use their payment systems. These rules resulted from an amendment to the Telecommunications Business Act in South Korea which was signed into law in August 2021.
Now, Apple has finally provided app developers with detailed guidance for how to use a third-party payments provider in South Korea.
Here are 7 takeways you need to know before considering whether to offer alternative payments in South Korea:
1. Apple still takes a 26% commission
The commission assessed is the normal App Store revenue split of 30% to Apple, less the fees associated with payment processing and related features.
2. Responsible for user support related to payments shifts from to the developer
App developers offering alternative payments in South Korea will need to provide all end user support functions related to payment processing issues, refund requests, subscription management, and more. Apple will not field any support requests related to third-party payments and will direct users to your support URL(s).
3. To offer alternative payments in South Korea, your app needs a special entitlement from Apple
Developers interested in offering alternate payments in South Korea must request a special entitlement called the StoreKit External Purchase Entitlement for use within a build of your app specific to the South Korea App Store storefront.
4. Your alternative payments app for South Korea must be a new, separate app binary
App developers who want to offer alternative payments in South Korea must create a new app binary. This app will need to use a new bundle ID that has not been previously published on the App Store.
5. You must select an Apple pre-approved payment service provider
Apple has pre-approved four payment services providers (PSP) in South Korea for payment processing:
KCP
Inicis
Toss
NICE
Each of these providers all meet Apple’s criteria which includes having broad payment support, industry standard privacy and security, fraud prevention, subscription billing, and split payments support. The special entitlement permits usage of only one PSP. You may request a PSP not on the pre-approved list, but Apple will consider additional PSPs at their discretion.
6. You must surface an External Purchase Modal Sheet to users as part of your alternative payments flow
Before collecting payment information, you must inform users that the app is using alternative payments via a modal sheet conforming to a design provided by Apple.
7. No web views allow for third-party in-app payments
Apple is requiring that the in-app payment experience for apps in South Korea taking advantage of alternative payments is fully native. No web views are permitted.
Final Thoughts on Alternative Payments in South Korea
It remains to be seen whether app developers will widely adopt alternative payments in South Korea or anywhere else in the world should they become available in other juristidations.
Arguably, Apple’s requirements allow compliance with South Korea law while trying to minimize as much end user confusion as possible.
For app developers and publishers, owning the customer transaction can sound enticing. As we’ve shown in this article, there are important considerations that make it a less straightforward decision.
At Nami, we’re tracking the global regulatory pressure that has been building for some time that may force Apple and Google to more widely permit a solution such as what’s now available in South Korea.
We’ll have more to say in the future about the approach we’re taking with our product. In the meantime, we are 100% committed to providing a great experience for developers who depend on native Apple and Google billing.
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Nami co-founder & CEO Dan Burcaw joined Steve Young on App Masters Live where he discussed optimizing mobile subscriptions apps. The live session included real-time audits of three subscription apps.
This week is you will discover how to launch, scale, and optimize your mobile app subscription business. Our guest is Dan Burcaw, Co-Founder at Nami ML, a company focused on helping app developers start and grow mobile subscription businesses. Nami has assembled the world’s first machine learning dataset designed to accelerate subscription revenue. With over 1 Billion data points collected, Nami’s algorithm is trained to find and convert likely subscriptions.
Watch the replay on YouTube below or listen to the audio recording on Apple Podcasts:
Error Code 5 generally happens when the app doesn’t pass the expected parameters correctly in API calls or is misconfigured in the Google Play Console. For instance, developers may attempt to send incomplete or incorrect purchase or subscription IDs, or the product IDs might not match those configured in the Play Console. Additionally, this error can arise if the app is not properly linked to the billing configuration in the Play Console, causing the Play Store to reject the request.
Common Scenarios for Error Code 5 - Developer Error
This error commonly occurs in the following situations:
Incorrect API Parameters: Mismatched or invalid product IDs are sent in purchase or subscription API calls.
Unregistered Product IDs in the Play Console: Attempting to use product IDs in the app that don’t correspond to IDs set up in the Play Console.
Misconfigured App in Google Play Console: An app that hasn’t been fully configured for Google Play Billing can trigger this error during purchase initiation.
Testing Errors on Unpublished Apps: Apps that aren’t published on an internal testing track or have incorrect test environments set up may encounter this error.
Step-by-Step Solutions for Error Code 5
Solution 1: Verify All Product and Subscription IDs
Purpose: Ensures that the correct and registered IDs are used in the billing requests.
Steps:
Open the Google Play Console and navigate to In-app Products.
Confirm that all product or subscription IDs used in the app match the IDs registered in the Play Console.
Update any discrepancies in the app code to reflect the correct IDs.
Result: Using correct IDs helps the Play Store process the purchase requests accurately, resolving most issues with this error.
Solution 2: Review API Call Parameters
Purpose: Ensures that all parameters required for billing API calls are accurately included.
Steps:
In your billing API implementation, review each API call to ensure no parameters are missing.
Confirm that required fields, such as purchase tokens, product details, and SKU information, are correctly filled.
Consult the Google Play Billing documentation to verify compliance with current parameter requirements.
Result: Ensuring complete and accurate parameters in billing calls eliminates issues with missing data that can cause this error.
Solution 3: Publish App to an Internal Testing Track
Purpose: Testing on an unpublished app can cause errors; publishing the app to an internal testing track provides the required environment.
Steps:
Open the Google Play Console and go to the App Releases section.
Create an Internal Testing Track and publish the app there for proper testing.
Add test accounts to this track to simulate real purchase flows.
Result: Testing on an internal track helps replicate real-user conditions, allowing accurate integration testing without encountering Developer Errors.
Solution 4: Clear Play Console Cache on Device
Purpose: Clears potentially outdated configuration data that may cause a mismatch in subscription or purchase IDs.
Steps:
On the testing device, navigate to Settings > Apps > Google Play Store.
Go to Storage and select Clear Cache.
Re-open the Google Play Store and attempt the in-app purchase or subscription flow again.
Result: Clearing the cache ensures the device syncs with the latest configuration, reducing mismatched parameter issues.
Solution 5: Re-check Developer Settings in Play Console
Purpose: Ensures that all Google Play Billing settings are fully configured.
Steps:
In the Google Play Console, navigate to Settings > Developer Account > Linked Apps.
Confirm that the app is correctly linked to the billing setup, and that all settings align with Google’s requirements.
Result: Proper configuration in the Play Console reduces billing errors and prevents issues related to Developer Error.
Conclusion
Error Code 5 - Developer Error is typically due to incorrect parameters or configuration issues in Google Play’s billing setup. By verifying product IDs, reviewing API parameters, publishing to a test track, and ensuring proper Play Console configuration, developers can resolve this error efficiently.
With Nami’s low-code solutions, developers can avoid the complexities of in-app billing integration altogether, allowing a seamless setup and maintenance of in-app purchases without the constant hassle of updates. Learn more about simplifying in-app billing at NamiML.
Gone are the days of one-time purchases for many products and services. Both B2B and B2C customers now have the option to access everything from software to music to even meal boxes at a subscription. This has fundamentally shifted the way businesses operate, placing a premium on retaining subscribers over extended periods to maximize customer lifetime value.
However, keeping subscribers engaged and subscribed is no mean feat. It is a constant challenge for many reasons –
The cost of churn is, well, costly. Losing a subscriber isn't just about missing out on one or two month's payment. Studies show it can cost 5-7 times more to acquire a new customer than to retain an existing one. Churn, the rate at which subscribers cancel their subscriptions, directly impacts a company's revenue stream and the overall health of the business.
Balancing growth and retention can be tricky. Companies often face pressure to prioritize subscriber acquisition to meet growth targets. However, neglecting churn management can lead to unsustainable growth and hinder long-term profitability.
Understanding the reasons behind churn and implementing effective strategies to reduce it is crucial for subscription-based business. By minimizing churn, companies can not only stabilize their revenue but also foster long-term customer relationships that fuel sustainable growth.
Subscribers cancel subscriptions for a variety of reasons, often a combination of factors. Let’s delve into the key categories that contribute to churn.
Lack of Perceived Value
Failing to meet user needs and expectations. This is a fundamental issue. If your subscription service doesn't address the core needs users signed up for, they'll have little reason to stay. For example, a fitness app that lacks engaging workouts or a meal-kit delivery service with repetitive recipes might lead to cancellations.
Unclear value proposition or benefits not realized. Sometimes, users might not fully grasp the value proposition of your service. Confusing marketing messages or a poorly designed onboarding process can leave them unsure of how the subscription benefits them.
Feature fatigue or feeling overwhelmed by complexity. Offering too many features can backfire. Users might feel overwhelmed by a complex interface or an abundance of features they don't need or use. This can lead to frustration and ultimately, churn.
Friction and Usability Issues
Difficult or confusing user experience. A clunky interface, unclear navigation, or a slow-loading app can significantly hinder user experience. If it's difficult for users to find what they need or complete tasks within the platform, they're more likely to abandon ship.
Technical problems or bugs hindering user journey. Technical glitches, bugs, and frequent crashes create a frustrating experience for users. These issues disrupt the user journey, making them unhappy and leading to cancellations.
Lack of proper onboarding and in-app guidance. New users need a clear roadmap to navigate your platform and understand its value. Users might struggle to get the most out of your subscription without proper onboarding and in-app guidance, leading to dissatisfaction and churn.
Customer Experience Shortcomings
Poor customer support and slow response times. Efficient and helpful customer support is crucial for retaining subscribers. If users encounter problems and don’t get timely assistance, they're more likely to cancel their subscriptions.
Hidden fees or unexpected charges cause frustration. Transparency in pricing is key. Hidden fees or unexpected charges tend to erode user trust and lead to cancellations.
Difficulty in managing accounts. Making it difficult for users to manage their subscriptions creates a negative perception. A smooth and straightforward process to upgrade or downgrade fosters trust and can help retain subscribers who might otherwise churn out of frustration.
External Factors Influencing Decisions
Changes in user needs or life circumstances. Sometimes, churn is due to factors outside your control. Users' needs and life circumstances can evolve. A student who subscribed to a language learning app might cancel upon graduation as they no longer need it.
Economic downturns leading to budget cuts. Economic downturns can force users to tighten their belts and cut back on discretionary spending, which can lead to subscription cancellations.
Finding a better deal or competitor offering more value. The subscription market is competitive. If users find a competitor offering a better deal or more value for their money, they might switch providers.
Prioritizing user research and understanding customer needs. Understanding the target audience and their needs is fundamental to any business. Conduct user research through surveys, user interviews, and A/B testing to identify pain points and areas for improvement.
Simplifying onboarding and communicating value clearly. The onboarding process is crucial for creating the right first impression –get this wrong and you risk alienating even the most enthusiastic first-time users. Make the onboarding process smooth, and informative, and highlight the value proposition clearly. Users should quickly grasp what the subscription offers and how it benefits them.
Opal's paywall outlines a clear 7-day onboarding process
Focusing on user interface (UI) improvements and intuitive design. A clean, intuitive UI is essential. Strive for a user-friendly design that allows users to navigate the platform easily so they can find what they need without getting lost.
Apple TV's paywall has a clean interface with clear messaging on what their subscription offers
Deliver Consistent Value
Regularly update features and content to maintain user engagement. Complacency is the enemy of retention. Regularly introduce new features, fresh content, and updates to keep users engaged and coming back for more.
Implement personalized recommendations and cater to user preferences. Personalization goes a long way in enhancing the user experience. Study user behavior to recommend content, features, or subscription plans that cater to individual preferences.
Offer different subscription tiers to cater to different needs. A one-size-fits-all approach might not work when trying to engage with users with differing needs, missions, and psychographics. Consider offering different subscription tiers with varying features and price points to cater to diverse user needs and budgets.
Peacock TV's multiple subscription plans
Create Strong Customer Relationships
Extend proactive customer support and address user concerns promptly. Provide excellent customer support with multiple channels for users to reach you (e.g., live chat, email, phone). Respond to inquiries promptly and address user concerns so that they continue to trust you.
Gather user feedback and implement improvements based on insights. Actively seek user feedback through surveys, reviews, and support interactions. You can also make use of in-app or in-platform user behavior to understand “aha moments” and drop-off points. Analyze different subscription metrics to identify areas for improvement and implement changes that enhance the user experience.
Offer loyalty programs and incentives to reward long-term subscribers. Show appreciation for your loyal customers. Implement loyalty programs, exclusive discounts, or early access to new features to reward long-term subscribers and incentivize them to stay.
Address Payment and Billing Issues Proactively
Ensure a smooth and secure checkout process. The checkout process for subscriptions should be frictionless and secure for your users. Offer multiple payment options and ensure a clear and transparent pricing structure.
Offer flexible subscription options like pausing or downgrading plans. Give your subscribers flexibility. Allow them to pause their subscription if needed, downgrade to a lower tier, or easily switch plans based on their evolving needs.
Send out clear communication regarding billing cycles and potential price changes. Transparency in billing is key. Communicate billing cycles clearly, and provide advance notice of any potential price changes to avoid surprises and frustration.
For any subscription-driven business, understanding churn and its causes is critical. Losing subscribers not only impacts revenue but also weakens your customer base, negatively impacting investor confidence. By identifying the reasons behind subscription churn, as explored in this article, businesses can develop effective strategies to retain subscribers.
The key takeaways for reducing churn lie in:
Optimizing the user experience: Prioritize user research, simplify onboarding, and focus on intuitive app design to create a seamless and engaging platform.
Delivering consistent value: Regularly update features and content, personalize the user experience, and offer flexible subscription tiers to keep users engaged and satisfied.
Fostering strong customer relationships: Provide excellent customer support, actively seek user feedback, and implement loyalty programs to build trust and incentivize subscribers.
Addressing payment and billing issues: Ensure a smooth checkout process, offer flexible subscription options, and maintain transparent communication regarding billing.
Remember, churn management is an ongoing process. By continuously analyzing data, implementing improvements, and adapting to user feedback, subscription businesses can minimize churn and build a loyal subscriber base that fuels sustainable growth.
To learn more about how to manage your subscriptions successfully, reach out to Nami ML.
With great opportunity comes fierce competition. The world is increasingly being run on apps – which makes it both a boon and a bane for businesses hoping to attract customers. To establish a strong foothold, you need to cut through the noise.
Sure, strategic planning is crucial for long-term subscription growth. But sometimes, a quicker win can be achieved through rapid testing of various mobile app growth hacking tactics. This is how you can identify what resonates with your users, and then double down on those high-performing strategies.
We have compiled a list of 50 growth hacks (yes, we said 50!) that are used by some of the world’s most successful apps that you can experiment with to drive the growth of your app subscriptions.
We’ve broken down these hacks into five key areas, so you can unlock subscriber growth across every stage of the user journey.
Know your ideal subscriber so you can create relevant subscription offerings.
Conduct targeted acquisition to attract the right users with the right message at the right time.
Make the free-to-paid user journey frictionless so that upgrading becomes really easy.
Find ways to optimize your app using data and run A/B tests so you can refine it for continuous growth.
Engage with your users in-app to keep them hooked and nudge them towards a subscription.
Know your ideal subscriber – craft relevant subscription offerings
Craft user personas: Identify your ideal subscriber's demographics, desires, and frustrations. What keeps them up at night? How can your app solve their problems? When you understand this you can tailor the app experience, and subscription offerings, to the actual needs of your users.
Conduct user research: Surveys, polls, and interviews provide invaluable insights directly from your target audience. You won’t have to rely on guessing which features will attract a premium – you can use actual user feedback to define your subscription plans.
Analyze app usage data: Not everyone uses your app the same way. See how users interact with the features in your free tier. Analyze usage patterns to optimize your free tier, then segment users (potential, engaged, churned) and target them with tailored incentives throughout the subscription lifecycle to skyrocket conversions.
Leverage user reviews: App reviews are gold! Positive ones highlight winning features, while negative ones reveal pain points. Listen, learn, and adapt your subscription offering. Turn frustrated reviewers into loyal subscribers by addressing their concerns.
Social listening & competitor analysis: Monitor relevant app communities on social media and online forums. Identify user pain points and desired features. Analyze your competitors' subscription offerings and user reviews to understand what features resonate with your target audience who use apps similar or complementary to yours. Use all this data to tailor your subscription plans to address specific needs.
User onboarding quiz: Integrate a short quiz when onboarding new users to understand their goals and needs. Based on their responses, recommend the most suitable subscription plan, maximizing the chances of conversion.
Targeted acquisition – attract the right users with the right message at the right time
Highlight value proposition: Don't just tell users about the premium side of your app, tell them why they need it. Craft compelling copy that speaks directly to your target audience's needs and desires. Clearly communicate the exclusive features and enhanced functionalities offered by a subscription, showcasing the additional value they'll unlock.
Utilize appealing creatives: Use high-quality, eye-catching visuals in your app paywalls to grab attention and make a strong impression. This will pique the user’s interest and nudge them towards that "buy" button.
Frictionless onboarding: First impressions matter! Guide new users seamlessly through core functionalities during onboarding. Showcase the app's strengths like its user-friendly design to make them feel confident using the app – only then will they feel comfortable spending money on a subscription.
Focus on immediate value: Don't overwhelm users with complex features right away. Highlight the benefits they can unlock with the free tier, showcasing the app's core value proposition and encouraging them to explore further – it takes proof of value to be convinced of the utility of an app before someone decides to spend money
Strategically place CTAs: Calls to action (CTAs) are your conversion levers. Don't just place them anywhere. CTAs should appear strategically at opportune moments when users experience limitations of the free tier. This nudges them towards upgrading for a more complete and valuable experience.
App store screenshot carousel: Design screenshots for the app store showcasing the value proposition of your subscription plans. Highlight exclusive features and benefits to entice users to download your app and upgrade!
Content marketing magnet: Publish valuable content (blog posts, infographics, videos) that addresses your ideal subscriber's pain points. Subtly integrate your subscriptions as the ultimate solution.
Influencer sponsorship: Partner with relevant influencers like Instagrammers or podcasters to reach your target audience. Offer exclusive discounts on subscriptions during the collaboration content like reels or podcasts and leverage the host's credibility to promote your value proposition.
Themed subscription bundles: Partner with complementary subscription services to offer themed bundles. For example, if you’re a streaming app a “movie night-in” bundle could be combined with a meal delivery app at a discounted rate. This incentivizes users to explore multiple subscriptions while offering a unique value proposition.
Subscription gifting: Introduce a feature that allows users to gift subscriptions to friends and family. This fosters social sharing and encourages existing users to promote subscriptions – one of the best ways to drive adoption and engagement because the subscription comes from a trusted, loved source.
Leverage influencer reviews: Secure app reviews on popular blogs relevant to your niche. Positive reviews with mentions of premium features build trust, showcase app value, and drive new users to invest in upgrades.
Frictionless free-to-paid user journey – make upgrading really easy
Freemium with strategic limitations: Use this approach to hook users with a free app experience, but cleverly limit key features. It's a way to showcase the true value of your subscription and drive conversions by highlighting the full app potential.
Introduce a special price: Sometimes, users might be hesitant to commit to a premium subscription without fully understanding the app's value. An introductory price acts as a "test drive," allowing them to explore features and experience the benefits firsthand before committing to a long-term plan.
Strategic hints of premium: Don't force an upgrade, but subtly showcase its value. At key points in the free tier, introduce users to "premium-only" features with a gentle nudge towards subscribing to unlock the full experience.
Personalized recommendations: It's important to cater to individual needs. Leverage user data to suggest premium content or features that align with individual interests, making a premium subscription even more tempting for users.
Reward active users: Build loyalty and encourage upgrades. Implement a loyalty program where users earn points or badges for their activity, that can be redeemed for exclusive content or subscription discounts.
Freemium to premium flip: Intrigue users with a trial twist. Offer a limited "reverse trial" period where users automatically have access to premium features. After the trial, these features become locked, incentivizing users to subscribe to regain access.
Friction point analysis: Analyze user behavior data to identify points in the free tier where users encounter friction. You can use such points to strategically introduce your premium plans – providing immediate context and value for the paid features, making upgrades more appealing.
Free tier expiry countdown: Implement a visible countdown timer within the free tier showcasing the remaining storage space or time left (or any other core feature that will run out) before limitations kick in. This creates a sense of urgency and subtly encourages users to upgrade before they lose a beloved feature.
Subscription waitlist with exclusive content & early access: Implement a waitlist system for upcoming content releases or highly anticipated features. Subscription users automatically gain priority access, while users on the free tier can join a waitlist. This incentivizes users to subscribe to avoid missing out on new releases and creates a sense of exclusivity for existing subscribers.
Subscription “buddy system” incentives: Introduce a "buddy system" where existing subscribers can invite friends to join the app and receive a discount on their subscription when their friend upgrades. This incentivizes existing users to promote the app.
Data-driven optimization – A/B test and refine for continuous growth
A/B test paywall placements: Don't settle for a single location to place your paywalls! Experiment with A/B testing paywalls by displaying them at strategic points in the user journey - onboarding, feature limitations within the free tier, or after completing tasks.
A/B test CTA placement: Experiment with different locations for your calls to action. Test CTAs after completion of key tasks, within limited freemium features, or even embedded in progress dashboards.
A/B test value propositions: Craft multiple compelling value propositions highlighting the different benefits of your subscriptions. Utilize A/B testing to compare these messages and see which ones resonate best with your target audience.
A/B test visual design: Utilize A/B testing to optimize your app’s paywall design. This goes beyond simply changing colors. Experiment with different visual hierarchies, color psychology, and overall design styles, like minimalist versus playful design approaches.
A/B test headlines & copywriting: Make use of different tones and styles like using strong verbs to encourage action (e.g., "Upgrade Now" vs. "Explore Premium”). You can also test the length of headlines and copy by comparing concise headlines that clearly communicate the value proposition versus longer, more descriptive headlines and copy.
A/B test social proof and trust signals: Utilize A/B testing to optimize the placement and format of social proof on your subscription paywall. This could be customer testimonials, logos of well-known companies using your app, or prominent security badges. For example, highlight industry-specific certifications for B2B users, or showcase testimonials from users with similar demographics for a more relatable approach with your B2C consumers. You can also test the format of social proof elements and trust signals like text-based testimonials, video testimonials, or showcasing user ratings and reviews.
A/B test different pricing layouts: Test different ways to present your pricing – it should be clear, concise, and easy for users to understand exactly what they're getting for their money. Avoid hidden fees or confusing terminology.
A/B test free trial durations: Test different trial lengths to discover the sweet spot for user habit formation within your app. A shorter trial might be enough to spark interest, while a slightly longer one could nudge users towards forming a regular habit and ultimately converting them into paying subscribers.
A/B test different pricing options by locations: Conduct price experiments in different countries. User behavior and price sensitivity vary greatly by location. By A/B testing different price points in different regions, you can reveal the unique price elasticity of each market, optimizing your pricing strategy so you can win over a global audience without sacrificing conversions.
User churn prediction & pre-emptive incentives: Implement churn prediction models based on user data and behavior patterns. For users identified at risk of canceling their subscription, launch targeted in-app campaigns with personalized offers or incentives to encourage them to stay with free or discounted upgrades.
In-app engagement strategies – keep users hooked and nudge them toward a subscription
Offer multiple paywall subscription models: Cater to different budgets and needs with various paywall subscription models offering different feature sets. Distribute features strategically across tiers. Higher tiers should offer significant value increases compared to lower tiers.
Offer annual subscription discounts: Implement a tiered pricing structure that incentivizes users to commit to a year-long subscription. Clearly showcase the cost savings associated with the annual plan compared to the monthly option. Annual subscriptions secure predictable recurring revenue for a year, boosting your overall customer lifetime value.
Subscription anniversary or birthday rewards: Celebrate user subscription anniversaries or their birthdays with exclusive rewards or bonus features in the form of higher-tier subscriptions or discounts. This fosters customer loyalty and appreciation, potentially encouraging users to maintain their subscriptions for the long term.
Run seasonal promotions: People are more receptive to special offers during holidays and seasonal events. Capitalize on this by running limited-time subscription deals that tap into the excitement of the season. The holiday season (Thanksgiving through New Year's) is a goldmine for subscription campaigns, but don't stop there! Think creatively and explore other holidays relevant to your target audience and the countries or cities they live in.
Utilize in-app promotion: Carefully integrate non-intrusive ads or banners within the free tier to promote in-app purchases and potentially convert users to paying subscribers.
Offer early access to new features: Entice users to subscribe by providing them with exclusive access to upcoming app features or content. Early access to new features creates a sense of exclusivity and significantly increases the perceived value of your premium subscriptions.
Host webinars or online courses: Offer valuable educational content related to your app's functionality, with a premium tier providing in-depth access or exclusive resources. Such content could take the form of pre-recorded webinars, live online courses, or downloadable resources
Run contests and giveaways: Organize contests and giveaways with subscriptions as prizes to generate excitement and attract new users.
Push notifications: Utilize strategic push notifications to remind users about valuable subscription features or limited-time offers. However, avoid being spammy – tailor notifications to be relevant and add value.
Offer offline functionality or syncing features (if applicable): Provide the ability to use certain app features even without an internet connection or the ability to sync across multiple devices, increasing the value proposition of a subscription.
Use the FOMO effect: Create a sense of urgency with a limited-time deal. But be mindful and ethical about how you use this. The fear of missing out (FOMO) incentivizes users to act fast and subscribe before the deal expires but you need to make sure you don’t end up overwhelming users with constant promotions.
"Others are upgrading" notification: Display a notification (with privacy considerations) that a certain number of users within the app (or a specific region) have recently upgraded to the premium tier. This social proof, combined with a touch of FOMO, can nudge users towards subscribing as well.
Offer the benefits of a community: Nothing creates a sense of belonging like a strong community does. Include community elements like exclusive forums, expert interactions, or the ability to "connect" with other users as premium features – all of which create a rich social experience within the app.
Unlock mobile app subscription growth by testing multiple hacks
The mobile app landscape is teeming with subscription opportunities, but standing out requires a strategic approach. Before you decide to invest in specific tactics, try testing out different hacks that can help you make an immediate impact and score some quick wins in the form of new paying subscribers.
These hacks are your springboard for crafting comprehensive app growth strategies. Experiment, analyze, and refine your approach to build a thriving and loyal subscriber base.
Want to ace mobile app growth hacking? Build high-converting app paywalls and test these strategies in minutes! Sign up for a free trial of Nami's no-code paywall builder platform and unlock the full potential of your mobile app subscriptions.
Let’s consider the area of fitness. There is a smorgasbord of options, catering to every exercise whim. You've got the high-octane training apps that turn your phone into a pocket-sized drill sergeant, the zen yoga and meditation apps that help you find inner peace, and the gamified fitness companions that make getting fit feel like playing your favorite video game. From couch potato to gym rat, there's a fitness app out there for everyone.
This is just one example of the diversity of apps. Dive deeper and you'll find a universe of apps dedicated to sports, games, news, entertainment, productivity, creativity – the list goes on!
With so much competition, how do you make sure your app survives and thrives?
In-app purchases are the lifeblood of any app's success. Whether you're an app marketing guru or an app product owner, you need to constantly innovate and keep users feeling like they're getting their money's worth.
Enter the paywall: a strategic tool that lets you offer premium features or content within your app, but with a twist – users gotta pay to play. Paywalls have the potential to unlock a treasure trove of revenue and propel your app's growth.
But here's the catch – they can also be a double-edged sword. A poorly designed paywall can be as frustrating as a bad hair day, affecting user retention.
The key is to optimize app paywalls. By crafting user-centric paywalls that clearly communicate value and make subscribing a breeze, you can transform that dreaded "wall" into a gateway to a world of exciting content, activities, and adventures.
This article is your roadmap to mastering paywall optimization. We'll talk about why you need to be thinking strategically about paywalls, best practices for app paywall design, and deep-dive into app growth strategies to maximize paywall conversion rates and drive revenue.
Here’s how a well-designed paywall can determine not just how users engage with your app, but also the impact on your business goals.
Level up the user lifetime value (LTV)
Imagine this: instead of just casual users, you have a legion of loyal fans. That's the power of a good paywall. By clearly showing the value of premium features, you entice users to invest in your app. This translates to them sticking around longer, being a part of a community that feels like a VIP club and ultimately driving app monetization.
Keep users satisfied
A clunky paywall is the app equivalent of stepping in gum – frustrating and sticky. Optimization ensures a smooth experience by presenting the paywall at the right moment in a user’s journey, with clear and concise messaging. It's like a maître d' who guides you to the best seat in the house. This keeps users happy and more likely to see the value of upgrading, reducing churn, and keeping those frustration headaches at bay.
Choosing your paywall type
There's no one-size-fits-all paywall. Here's a quick rundown of popular models to pick a paywall that works for your users:
Freemium monetization: This is like the free appetizer before the main course. Core features are free, with premium goodies locked behind the paywall. This is ideal for apps with a large user base where many find value in the free tier.
Subscription monetization: Think of it like a VIP pass to a constant stream of awesomeness. Users pay a recurring fee for ongoing access to premium features. This is excellent for apps with content or services users will consistently use and love.
Apple Fitness+ paywall displaying a subscription offer with monthly and yearly pricing options
Tiered pricing structure: This offers different subscription levels with varying features and price points, catering to users with diverse needs and budgets. It's like having a buffet with options for everyone, from the light eater to the bottomless brunch champion.
Flightradar24 paywall displaying various subscription tiers with different feature sets
A step-by-step guide to paywall optimization that drives app monetization
Before you can start reaping the benefits of in-app purchases you need to optimize your paywall. Here's a step-by-step guide on how to optimize a paywall for a mobile app that unlocks sustainable app growth.
1. Understand your users
Knowing what your app users want (and when they want it) is critical for the success of your app. Make use of surveys, focus groups, customer interviews, and even in-app analytics to uncover their needs, pain points, and the features they crave the most.
2. Craft a value proposition that makes users shout "YES PLEASE!"
Your paywall shouldn't be a cryptic riddle. It needs to scream the value users unlock by upgrading. Forget dry feature lists – translate them into user benefits! Don't say "unlimited storage," say "Never get that dreaded 'storage full' message again!" Focus on user retention by solving user pain points and making their app experience epic.
3. Find the sweet spot with A/B testing paywalls
A/B testing lets you experiment with different paywall elements and assess what prompts users to take action toward paid or premium plans. Here are some elements you can test –
Visuals: Think of contrasting colors, clear CTAs, and eye-catching images. Test different combinations to see which ones make users stop scrolling, take notice, and click that CTA button.
Messaging: Headlines, value propositions, CTA wording – it's all up for grabs! Test different tones and styles to see which ones entice users the most.
Pricing tiers: Got multiple subscription options? Test different price points and feature combinations to find the sweet spot between affordability and value.
Imagine a treasure map that leads directly to a user's heart's desire. That's the power of personalization in apps. Use user data to tailor paywall offers and messaging to individual users. For example, a fitness app user who religiously uses workout playlists can be shown a paywall highlighting ad-free music. This targeted approach makes the paywall more relevant and impactful, significantly boosting paywall conversion rates.
5. Make it easy and intuitive to upgrade
Ensure a clear and concise layout with easy-to-understand pricing and a smooth payment process. Minimize clicks and unnecessary steps. Remember, a smooth journey makes users more likely to reach the final destination – becoming a paying, happy app user.
Common paywall mistakes to avoid
To optimize your paywall and boost paywall conversion rates, be sure to avoid these mistakes –
Not being clear about what you're offering beyond the paywall: Your users shouldn't have to guess what they are paying for. If you don't make it clear right at the outset, not only do you risk losing conversions, you risk losing the customer entirely if they uninstall the app.
Don't get the paywall in front of users too soon: Shoving a paywall in users' faces before they've even explored your app is a surefire way to make them wary of you. Wait until they've experienced the free version's awesomeness to show them the upgrade path to even more epic features. Here are some paywall placement best practices you can try out.
One size fits nobody: Treating all users the same won't work. Personalize your paywall offers based on what each user loves about your app. A fitness fanatic wouldn't be interested in unlocking fancy filters, but ad-free music might be just what they are looking for!
Making payments complicated: A confusing or long checkout process will make users throw their hands up in frustration. Ensure you’re building a frictionless checkout process to sustain user retention.
The goal: Spotify likely wanted to achieve two key objectives through this A/B test:
Increased premium subscriptions: By placing a desired feature (lyrics access) behind a paywall, Spotify wanted to gauge user willingness to upgrade for this specific benefit. If the test ended up showing a significant increase in conversions during the premium signup flow, that would strengthen the case for potentially implementing these kinds of app growth strategies more broadly.
Understanding user value perception: This test offers valuable insights into how users perceive the value of in-app features like lyrics. Do users see lyrics as an essential part of the Spotify experience, motivating them to upgrade? Or do they find it a non-essential feature, indicating Spotify might need to focus on highlighting the broader benefits of premium (ad-free listening, on-demand playback, etc.)
The outcome: As Spotify themselves acknowledge, this is an ongoing A/B test. They haven't revealed the timeframe or specific results yet. However, the data gathered from user behavior during this test will be crucial in determining the future of lyrics access on the platform. Will it remain freely available, or could it become a premium perk? Only time (and the A/B test results) will tell.
Key takeaways:
A/B testing paywalls allow those responsible for app marketing and product owners to experiment with different features and functionalities to gauge user response.
Data gathered during A/B tests helps companies understand user behavior and preferences.
Paywall strategies can be implemented for specific features to assess user willingness to pay for premium experiences.
Craft app paywalls that make it exciting for users to scale
Optimized paywalls are like lighthouses in the app store fog – they guide users toward the ultimate prize: an app experience that fulfills their needs and desires.
By prioritizing user experience in paywalls, crafting watertight value propositions, and wielding user data and analytics, you can drive app monetization and build a foundation for the long-term success of your app.
Ready to unleash the power of app paywalls? Maximize paywall conversion rates and unlock explosive revenue growth for your app with Nami – the no-code paywall builder that makes paywall optimization a breeze. Sign up for a free trial here.
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