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.
Subscriptions are projected to become a mind blowing $1.5 trillion market by 2025. From mobile apps to John Deere tractors, the future looks like it will be subscription-based. Subscription marketing is a frontier opportunity for marketers wanting to succeed with subscription products or services.
In this article, we will explore the five critical strategies that can equip you to become a world-class subscription marketer:
Enhancing your CRM for subscriptions
Adapting marketing automation to the subscription lifecycle
Paywalls as your best low-hanging optimization opportunity
Viral loops to help subscriber acquisition and subscribe retention
Churn is a lagging indicator so you also need a leading indicator
Let’s dig into each of this.
Enhancing your CRM for Subscription Marketing
The relationship you have with your customers (and potential customers) requires special consideration in the subscription era. For subscription products, the customer journey needs to be modeled around a customer’s interaction with and through the subscription lifecycle over time.
Actionable Subscriber Segments
At a high level, a subscription-based offering has four high level customer segments:
Never Subscribed: Prospects for trialing your subscription for the first time
Currently Trialing: Customers who may convert into paying subscribers
Active Paying Subscriber: Customers you need to work hard to retain
Former Subscribers: Former paying customers you can win back
Within each of these segments there are also sub-segments your subscription marketing efforts need to take into account. For instance, within Active Paid Subscribers there sub-segments. Each need to be marketed to very differently. Here are some examples:
Auto-renewing: Subscription is active, customer currently will renew at the end of the current billing period
Not auto-renewing: Subscription is active, but customer is not renewing at end of the current bill period
In grace period: Subscription is only still active due to a billing grace period. If the customer doesn’t current a billing issue they may involuntarily churn
Cancelled: Subscription is active, but customer has cancelled effective at the end of the current billing period
It’s also important to recognize that subscription segments are fluid. Customers can and will come and go from segments and sub-segments as their relationship with a subscription changes.
Adding Subscriber Context
Your CRM system needs to be enriched with subscription context so you know a customer’s status within the subscriber journey at the current moment in time. You also need to know what their historical subscription journey is.
For instance, a customer may have been an Active Paid Subscriber for a dozen billing periods but is not currently paying. This customer is likely a high-potential win back opportunity versus a customer who was churned out quickly after one billing period.
To summarize, your CRM needs to be enriched for subscriptions in three key ways:
Current subscription lifecycle status
History of interactions through the subscription lifecycle
Customer lifetime value (CLV)
Armed with this you can effectively execute a subscription marketing automation strategy built for the subscriber lifecycle.
Subscription Marketing Automation
Marketing automation is a key strategy for lead nurturing in B2B sales since the sales cycles are long. It’s also becoming more common in B2C marketing as brands go beyond simple e-commerce use cases to a more holistic view of customer interactions across channels.
Marketing automation is perfect for subscription-based products and services. Similar to lead scoring, subscription marketers can use the CRM enrichment combined with interaction data to score customers.
Subscription Lifecycle Scoring
For subscriptions, a few different scores are needed. However, which is useful for a given customer depends on their current subscription lifecycle status. For example:
A likelihood to start a trial score if the customer has never subscribed
A likelihood to convert to paid score if the subscriber if currently trialing
A likelihood to renew score if customer is an active paying subscriber
These scores, along with a customer’s current subscriber lifecycle status and CLV can be used for marketing automation campaigns.
For example, if a customer has never subscribed and their likelihood to start a trialscore is low, then consider a marketing automation series focused on educating the user about what they are missing out on. This isn’t the moment for the hard sell. These users need to be nudged.
Similarly, if a customer is currently trialing but their likelihood to convert to paidscore is low, then make sure they know how to get the most of their trial. They may not be aware of all the features and benefits they currently have access to.
Remember, subscriptions are a long game. Customers may come and go. However, you always have a chance to bring them back into the fold.
Too many brands focus on jamming users through the acquisition funnel and into a trial start before the customer even truly know what the offering is about or whether they even want it.
This is especially true in with mobile apps due to the reliance on paid acquisition, high D1 and D7 churn rates, and the post-IDFA privacy landscape.
Subscription marketing automation can help you leverage your customer data to target the right message to the right user in the right subscriber journey state.
Paywall Optimization is your best low-hanging fruit
So much effort is spent on acquisition campaigns to fill the funnel, at rightly so. However, it can be incredibly difficult to optimize your paid acquisition efforts.
This is partially due to the incredibly complex advertising technology landscape. It’s also because of the changing regulatory environment around end user privacy.
Many subscription products view the paywall as piece of transaction technology wrapped in a utilitarian user interface. A necessary screen that helps customers transact.
The paywall can be so much more. In fact, the paywall should be your most important subscription marketing asset.
The Right Paywall Infrastructure
Believe it or not, the paywall is one of the least optimized elements in many subscription businesses. This is because it’s often owned by the technical teams. Changes are infrequent and require a development cycle. Improved are requested by, but not managed by marketing.
It turns out with the right infrastructure, paywall optimization is one of the best low-hanging fruit opportunities. Conversion rate improvements of 2-5X areachievable through modest changes.
In order to optimize your paywall though, you need the right paywall infrastructure. The right solution should be able to meet the following requirements:
Create, deploy, and update paywalls using a paywall CMS
Show the right paywall to the right user with paywallsegmentation
Run paywall A/B tests toimprove conversion
In addition to the paywall, there is another experience you can deliver that will help drive down customer acquisition costs (CAC) and improve Retention. Let’s take a look.
Viral loops can help subscriber acquisition and subscribe retention
Customer acquisition is hard. In subscription businesses it can be even harder. While subscriptions can offer customers the benefit of a low monthly price for a product or service, you’re asking customers to have an ongoing relationship with you.
As we’ve discussed, optimizing paid acquisition is one of the most challenges aspects for subscription marketers. Viral loops can be a game changer that help your acquisition and retention efforts.
Here are some examples of some subscription product viral loops:
A Currently Trialing customer gets time added to their trial by referring a friend who signs up. The trialing customer will likely become stickier, and you just acquired a new prospective customer at a much lower CAC.
A news app Active Paying Subscriber can share a paywalled article with a friend. The paying subscriber feels good about sharing, and could even earn additional shares or maybe branded merchandise. Meanwhile, a new prospective customer gets a taste of what life is like as a subscriber.
A Freemium User (e.g. prospective customer) gets a certain quantity or time premium access if they get a friend to sign up. Dropbox famously executed this strategy giving both sides of the referrals 500MB of free storage.
A successful viral loop, like a dual-sided referral program can be an excellent way to create loyalty-building moments with potential customers and subscribers.
Meanwhile, the quality of audience acquired is higher and the CAC economics to support the program are completely within your control.
Churn is a lagging indicator so you also need leading indicators
Subscription marketing requires great measurement. Yes, you need to track core business metrics such as MRR and Churn. These metrics are important.
Just remember, these metrics are lagging. You don’t have MRR growth until more trialing customers convert from free-to-paid and/or you have less churn in your paying subscriber list.
To know where your subscription business is heading, you also need leading indicators. Here are just a few examples of metrics you can measure over time to help you understand where things are headed now:
The free-to-paid conversion rate. Is it improving?
How % of users have auto-renew turned off? Is this trending up?
What is the mix of monthly vs. annual plans? Is the trend changing?
Are customer satisfaction surveys or app store reviews trending a different direction?
These are just come of the clues you can track to detect that change may be coming to your core subscription business metrics.
Subscription marketing is a new specialization for marketers looking to drive marketing breakthroughs in the massive and growing subscription economy. With subscriptions on track to be a trillion dollar market in the next few years, it’s a great time to hone new strategies.
If you’re a mobile app publisher, Nami provides the premier solution for marketing your in-app subscriptions. We’re focused on delivering powerful tools to help you improve your app’s subscription marketing. Here’s just a few ways we help:
Our platform gives you the subscription data layer you need to enrich your CRM and other important marketing systems.
We also give you the right infrastructure to turn your paywalls into your most essential subscription marketing asset. This is made possible by a no-code paywall CMS and paywall A/B testing suite.
Nami co-founder & CEO Dan Burcaw joins School for Startups Radio, hosted by Jim Beach, to talk serial entrepreneurship and Nami ML's work to help app developers start and grow mobile subscription businesses.
Subscription Builder Dan Burcaw is a serial entrepreneur who has founded four companies each on the forefront of a major technology wave: open source software, the smartphone, cloud computing, and now machine learning. His newest venture, Nami ML, focuses on helping app developers start and grow mobile subscription businesses.
Updated June 21, 2020 11:30am PT to use #VintageSwagNamiML hashtag.
Normally during WWDC, the Co-Founders of Nami ML, Dan and Joe, host a wild and crazy party (some of which from years past are still legendary like the one with the marching band at Mezzanine or the one atop Union Square at Harry Denton's Starlight Room in SF, or of course that first one where we ruined the Tempest), but this year it has to be something different…
So to celebrate our favorite tech conference of the year, we’ve decided to run a little contest!
The contest is pretty simple and easy to participate in, but of course there are official rules from our lawyers.
Include your favorite #hashtag being used for the conference this week.
Daily winners will receive a US$100.00 Apple Gift Card to use to buy your favorite indie apps (or music, or anything else they can be used for).
The Grand Prize winner will receive a pair of Apple AirPods Pro (worth US$249).
So, start digging through your garage goldmine (find that one piece you’ve been holding onto for years for just such an occasion), put on your favorite old conference t-shirt, or any other vintage swag or gear you want to show off.
Sadly, we’re only allowed to let legal residents of the United States participate (thanks a lot, lawyers), but even if you can’t enter you can still show off!
Impress your friends, gain internet fame, and win prizes!
A seamless user experience is the cornerstone of any subscription business. Fast load times and positive interactions drive conversions and retention, while poor UX can lead to churn. Every touchpoint matters.
One of the most effective—and often overlooked—ways to elevate the user experience is through micro-interactions. These are the subtle animations, feedback cues, and responsive design elements that make digital experiences more intuitive, engaging, and enjoyable.
Think of them as the digital equivalent of a smile or nod during a conversation—small gestures that let the user know they’re being heard, understood, and guided.
In subscription UX, micro-interactions are particularly impactful, providing immediate feedback or encouragement during actions like signing up, subscribing, or managing an account.
Unlike single-purchase products, subscriptions rely on a user’s long-term commitment and repeat interactions. With so much riding on the user’s experience, even minor friction points in the subscription journey—such as unclear paywall designs or unresponsive payment confirmations—can lead to abandoned carts or higher churn.
Micro-interactions help eliminate these barriers, making the user journey feel intuitive and fluid. When users experience subtle, positive interactions, they’re more likely to feel at ease, proceed confidently, and remain engaged over time.
In this post, we’ll explore how micro-interactions, despite their small size, can make a substantial difference in the subscription experience.
Breaking Down Micro-Interactions: What They Are and Why They Matter
Micro-interactions are the small, often subtle responses or animations in a digital interface that respond to user actions. These interactions provide visual or tactile feedback that enriches the overall user experience, making it more engaging and satisfying.
They’re everywhere—hover effects on buttons, loading spinners, toggles, and even animations that confirm an action has been taken. Each one serves a specific purpose: reassuring, guiding, or delighting users as they navigate through an app or website.
Feedback Cues:
Feedback cues are immediate, usually visual or auditory, signals that acknowledge a user’s action.
For example, when a user clicks a button and it changes color, vibrates slightly, or expands, it confirms that their input was received.
In subscription UX, feedback cues are essential, as they ensure users know their actions—whether submitting information, confirming a purchase, or adjusting account settings—have been recognized, reducing any uncertainty or hesitation.
Guiding Actions:
These micro-interactions gently steer users through a sequence or process, reducing friction in multi-step actions like completing a signup or navigating a paywall.
A great example is a progress bar or sliding animations that signal movement through steps, giving users a sense of progression and encouraging them to complete the process.
In subscription-based models, guiding actions are especially useful for onboarding flows, helping users understand how to get the most from their subscriptions.
Enhancing Affordances:
Affordance-enhancing micro-interactions subtly show users how certain features work or what actions are possible. These animations can highlight call-to-action (CTA) buttons or make swiping actions feel intuitive and accessible.
For instance, a pulsing animation on a “Subscribe Now” button can draw the user’s attention and subtly prompt them to click.
These elements often play an essential role in paywall interfaces, where users need clear, intuitive cues to proceed through the payment journey.
The Psychological Impact of Micro-Interactions on User Perception and Behavior
Building User Trust:
Micro-interactions play a pivotal role in establishing user trust, particularly during critical moments such as payment flows. When users are making financial commitments, they seek reassurance that their actions are secure and recognized.
Subtle feedback, such as visual confirmation that a payment has been processed or a gentle animation indicating a successful subscription, helps users feel in control of the situation. This immediate response fosters a sense of trust between the user and the platform, making them more likely to proceed without hesitation.
In subscription-based businesses, where trust is essential for long-term customer relationships, micro-interactions become a key strategy for instilling confidence.
Reducing User Anxiety:
In digital environments, uncertainty can breed anxiety, particularly during significant actions like subscribing or confirming payments. Micro-interactions address this by providing instant, clear responses to user actions.
For example, a reassuring message like “Your subscription is confirmed!” displayed alongside a subtle animation can ease a user's mind and eliminate doubts about whether their action was successful.
By reducing hesitation and reinforcing a sense of accomplishment, these micro-interactions help create a smoother experience, encouraging users to complete their subscription journeys without second-guessing themselves.
Boosting Engagement and Satisfaction:
Pleasant and delightful micro-interactions can transform routine tasks into memorable experiences.
For instance, the joyful burst of confetti or a cheerful icon appearing after a successful subscription can elicit positive emotions and make the user feel appreciated.
These small moments of delight enhance overall user satisfaction, encouraging users to associate positive feelings with the subscription process. In a competitive landscape, where user engagement is paramount, such memorable interactions can set a subscription service apart, making users more likely to return and recommend the service to others.
Reinforcing Brand Personality:
Micro-interactions are also a powerful tool for conveying a brand’s personality and tone. Whether playful, serious, or user-friendly, well-designed micro-interactions can communicate a brand’s identity effectively.
For example, a quirky animation during onboarding can enhance a playful brand persona, while a sleek, minimalist confirmation animation can reflect a more serious and professional image.
Tiny interactions, done right, can create huge emotional connections. By weaving your brand's personality into every touchpoint, you'll inspire trust and reduce customer churn. Ultimately, these interactions not only elevate the user experience but also solidify the brand’s presence in users’ minds, making them more likely to engage and subscribe.
Implementing Micro-Interactions in Subscription UX: Key Opportunities
Subscription Onboarding:
Onboarding is a critical phase in subscription services, as it sets the tone for the user's entire experience. A well-designed onboarding process can significantly increase user engagement and retention. By integrating micro-interactions, businesses can guide users through their first steps with ease and confidence.
For instance, animations that encourage users to complete their profile or select their preferences can make the process feel more engaging and less daunting. Simple progress indicators, such as a visual timeline or step completion checkmarks, provide users with a sense of accomplishment, motivating them to continue through the onboarding journey.
These micro-interactions not only enhance the onboarding experience but also lay the groundwork for a positive relationship with the brand.
Paywall Design:
The paywall represents a critical decision point in the subscription funnel where users decide whether to commit to a paid plan. Therefore, reducing friction during this stage is essential. Micro-interactions can make the paywall more inviting and less intimidating.
For example, subtle animations that draw attention to the benefits of subscribing—like a gentle pulse on the “Subscribe” button or a slide-in tooltip that highlights premium features—can help users see the value of committing. Playful visual effects, such as expanding buttons that emphasize key benefits, create a dynamic and engaging environment that encourages users to take the plunge.
Subscription services can foster a more persuasive and less obstructive conversion experience by utilizing micro-interactions in paywall design.
Payment Confirmation and Success Feedback:
After users make a purchase, it’s crucial that they feel confident about their decision and the security of their payment. Micro-interactions in this phase can reinforce positive feelings and enhance user satisfaction.
Celebratory animations, such as confetti bursts or cheerful icons appearing after a successful subscription, add an element of joy and achievement to the process. Additionally, clear “Thank You” messages that confirm the subscription status help alleviate any lingering doubts. Incorporating simple loading animations during the payment processing step also keeps users informed about what’s happening, reducing anxiety and improving transparency.
These thoughtful interactions help ensure that users leave the payment process feeling valued and assured, which is vital for customer retention.
Subscription Renewal Reminders and Alerts:
Proactive communication is key to improving user retention, and gentle reminders before a subscription renewal can prevent unpleasant surprises for users. Micro-interactions in this context can take the form of soft alerts that provide clarity and transparency about upcoming renewals.
For instance, subtle vibrations or pulsing icons on the app can nudge users to check their account status or upcoming renewal dates. A well-designed reminder, perhaps accompanied by a friendly message like, “Your subscription will renew soon—thanks for being with us!” can create a sense of community and appreciation.
By implementing these gentle nudges, businesses can foster a proactive relationship with users, enhancing their experience and increasing the likelihood of continued subscriptions.
Best Practices for Effective Micro-Interactions in Subscription UX
Consistency Across the Journey:
One of the foundational principles for implementing micro-interactions is to ensure consistency throughout the entire subscription journey. From onboarding to renewal reminders, every micro-interaction should maintain a similar visual style, tone, and functionality. This cohesive experience not only strengthens brand identity but also makes the interface more intuitive for users.
When micro-interactions feel uniform, users can easily recognize patterns and understand how to interact with the interface.
For instance, if a subtle animation is used to confirm successful profile completion during onboarding, a similar animation should be employed for confirming payments or renewals, fostering familiarity and comfort.
Balance Function with Delight:
While micro-interactions can add an element of joy and engagement, it’s crucial to balance this delight with functionality. The purpose of these interactions should enhance the user experience rather than distract from it.
Animations should be smooth and purposeful, contributing to clarity and ease of use without overwhelming users with excessive or overly intricate effects.
For example, a brief, pleasant hover effect on a button can make the interaction enjoyable, while lengthy or complex animations may delay users from completing their desired actions. Keeping micro-interactions functional yet delightful is essential for maintaining user focus and satisfaction.
Focus on Clarity and Transparency:
Clarity and transparency are vital components, particularly in critical moments like paywalls and payment processing. Users need to understand what is happening at each stage of their subscription journey.
Clear feedback mechanisms, such as progress indicators or confirmations, help build user confidence.
For instance, displaying a progress bar during payment processing not only informs users that their action is being completed but also minimizes uncertainty and anxiety. Providing transparent information about what to expect next reinforces trust and encourages users to proceed confidently through the subscription process.
Prioritize Speed and Smooth Transitions:
The effectiveness of micro-interactions greatly depends on their speed and fluidity. Animations must be optimized for quickness and smooth transitions to maintain a seamless user experience, especially on mobile devices where responsiveness is paramount.
Slow or lagging animations can frustrate users, potentially leading to drop-offs.
Ensuring that micro-interactions are snappy enhances the overall feel of the application, making interactions feel immediate and satisfying. Users should feel that their actions lead to instantaneous responses, creating a more engaging and dynamic experience.
Test and Iterate:
Lastly, the best way to refine micro-interactions is through ongoing testing and iteration.
Regularly assess how users respond to various micro-interactions, gathering quantitative and qualitative data to inform adjustments. This feedback loop allows businesses to identify which interactions resonate well with users and which may need refinement.
For instance, A/B testing different paywall animations can reveal user preferences, helping optimize the design for better engagement and conversion rates.
By continuously testing and iterating on micro-interactions, subscription services can adapt to user needs and preferences, ultimately enhancing the user experience and driving subscription growth.
Small Touches, Big Impact—The Lasting Value of Micro-Interactions in Subscription UX
Micro-interactions, though often subtle, play a crucial role in shaping the user experience within subscription services. By providing immediate feedback, guiding users smoothly, and reinforcing brand identity, these design elements enhance user engagement and satisfaction.
For subscription businesses, the impact of micro-interactions cannot be overstated. They directly influence user satisfaction, brand loyalty, and conversion rates. As users increasingly demand seamless and enjoyable experiences, businesses that prioritize thoughtful micro-interactions gain a competitive advantage.
We encourage you to evaluate your current subscription UX critically. Look for opportunities where micro-interactions could be integrated to add value—whether it’s in paywalls, onboarding, or payment confirmations. Solutions like Nami ML can support your efforts to implement these powerful micro-interactions into your subscription experience, especially if you want to create powerful paywalls that have the power to convert users across devices.
In a highly competitive subscription landscape, these "small touches" can be the major differentiator that sets a service apart from its competitors. By investing in micro-interactions, you’re not just enhancing the user experience; you’re cultivating a community of satisfied users who are more likely to stick around, advocate for your brand, and contribute to your growth.
Error Code 3 is typically caused by issues with payment validation. This includes using an expired card, a restricted payment method, or incorrect setup in sandbox testing. The error also arises if the Apple ID used does not have a verified payment method, resulting in the App Store rejecting the transaction.
Common Scenarios for SKErrorDomain Code=3 - Payment Invalid
This error is commonly encountered in the following situations:
Using Invalid or Expired Payment Methods: The error appears if the user’s credit card has expired or if the payment method is invalid.
Testing Purchases with Incomplete Sandbox Setup: When using sandbox accounts, this error may occur if the payment profile is not configured properly.
Attempting Purchases on Restricted Accounts: Apple accounts with purchase restrictions or parental controls may trigger this error.
Incorrect Apple ID Setup: Attempting purchases on Apple IDs that lack verified payment methods can cause this error in both production and testing environments.
Step-by-Step Solutions for SKErrorDomain Code=3
Solution 1: Verify Payment Method in Apple ID Settings
Purpose: Ensures that the Apple ID used has a valid and updated payment method.
Steps:
Go to Settings > [User’s Apple ID] > Payment & Shipping.
Verify that the payment method is active and up-to-date.
If necessary, update the payment method to a valid credit card or payment option.
Result: Ensuring valid payment details reduces the likelihood of payment-related rejections.
Solution 2: Test with a Valid Sandbox Account
Purpose: Ensures that test purchases are conducted on a properly configured sandbox account.
Steps:
Log out of the current Apple ID and log in with a sandbox test account.
Ensure that the test account is active and has valid payment settings.
Retry the in-app purchase to confirm proper setup.
Result: Testing with a sandbox account configured for purchases eliminates payment validation errors during testing.
Solution 3: Confirm Payment Settings in App Store Connect
Purpose: Checks that payment settings in App Store Connect align with the app’s in-app purchase setup.
Steps:
In App Store Connect, go to In-App Purchases and verify each purchase’s configuration.
Make sure product IDs and subscription options are correctly listed and configured.
Result: Proper setup in App Store Connect reduces potential errors due to mismatches between the app and App Store configurations.
Solution 4: Advise Users to Check Parental Control Settings (for Restricted Accounts)
Purpose: Ensures users understand how restrictions can affect in-app purchases.
Steps:
Ask users to go to Settings > Screen Time > Content & Privacy Restrictions.
Instruct them to verify that purchases are allowed under iTunes & App Store Purchases.
Retry the purchase if restrictions were lifted.
Result: Ensuring no purchase restrictions are enabled allows transactions to proceed smoothly.
Solution 5: Reattempt the Purchase on a Different Device or Network
Purpose: Avoids issues due to device-specific or network-related restrictions.
Steps:
Test the in-app purchase flow on a different device or network.
Retry the purchase process to confirm if the issue persists.
Result: Testing on a different setup can reveal device-specific problems and confirm if the error is isolated.
Conclusion
Error Code 3 - Payment Invalid, typically arises from issues with payment methods or account restrictions. By verifying Apple ID payment methods, testing with sandbox accounts, confirming payment settings, checking parental controls, and reattempting on different devices, developers can resolve this error and facilitate a seamless purchase process.
With Nami’s low-code solutions, you can skip the hassle of managing in-app payment validation, allowing Nami to handle your app’s purchases with ease. Discover more at NamiML.
