In this episode we sit down with Patrick Falzon, CEO of The App Shop and a seasoned expert in the app economy. Ben and Patrick explore how subscriptions can be a game-changer for app revenue growth. Patrick’s insights are packed with actionable strategies to help you grow, retain, and monetize your app audience more effectively.
Want to get more tips and even personalized advice on how to build and grow your app? Join our Discord community here: https://discord.gg/subscriptions-hub?utm_source=soundcloud.com&utm_medium=social&utm_campaign=10K-playbook&utm_content=podcast
Takeaways
* 20,000 subscribers equals $1M in gross profit. You can get to a very profitable, sustainable business with less than you might think.
* Subscriptions align incentives between businesses and customers, fostering long-term relationships.
* The pros and cons of monthly vs. annual subscriptions, and why offering both can maximize flexibility and appeal.
* Weekly subscriptions don’t act like other subscription lengths. Their retention is often less than 1 month, they end the year with under 4% retention, and 50% of users often cancel renewals.
* Want the best converting paywall? Introduce it early (like in your onboarding or very first interactions with users after download). 80% of conversions for apps happen on the first day of use. Also, don’t assume your design is perfect. Use A/B tests to check your assumptions and make data-driven decisions on what works.
* Pricing can be tough, but Ben and Patrick review the best practices. Use free trials to boost lifetime value (LTV). 2-3 options generally work better than a single offering. And consider offering a lifetime unlock carefully. Only use it if your app and business naturally support it.
* Be sure to proactively communicate with your customers. Many will be happy to provide feedback or suggestions for improvement, but you have to initiate the conversation.
* Experiment with ways to improve retention. You can get massive LTV gains by improving retention.
* The hard reality of conversion rates means improving all you can about your funnel will lead to better outcomes for you and your customers.
* Install-to-paid conversion rates: 2–4%.
* Install-to-free-trial rates: 3–7%.
* Trial-to-paid conversion rates: 25–35%.
Links
Download our latest playbook to grow your app's revenue from $1k to $10k MRR
https://adapty.io/ebooks/roadmap-to-10k-dollars-mrr/?utm_source=soundcloud.com&utm_medium=social&utm_campaign=10K-playbook&utm_content=podcast
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