Users' growing comfort level with digital services and their desire for premium, exclusive content are driving the boom in subscription-based mobile apps. However, as consumers grow more discriminating and subscription fatigue sets in, app developers must balance making their products worthwhile with keeping users interested over the long haul. A more sophisticated, experience-driven strategy that comprehends and foresees user wants at a deeper level is required. Here are a few novel approaches that can improve retention and revenue in the subscription app market.
Emphasise “Value-Paced” Monetisation
The majority of subscription arrangements are based on a straightforward monthly or yearly charge. What if, on the contrary, the rate of monetisation matched the user's assessment of value? Consider this strategy as a "pay as you grow" model, where users pay more as they expand their usage or unlock more features. Allowing consumers to "grow into" the subscription rather than demanding a one-time payment upfront can provide a more natural revenue stream that is equitable and adaptable to users.
Leverage Behavioural Data To Craft Personalised Journeys
.jpg)
Because retention initiatives rely on generic nudges, such as "We miss you" emails or seasonal promotions, they frequently fail. Instead, create customised user journeys by utilising behavioural data. Consider a wellness app that identifies a user who struggles with consistency and provides a weekly challenge or customised motivational music based on their usage habits.
Offer “Membership Tiers” That Grow With The User’s Progress
Subscription apps frequently have the drawback of having set prices regardless of the user's current location. A sense of progression can be added by implementing membership tiers that change according to user engagement and accomplishment, giving users the impression that they are working toward a goal. A language-learning app, for example, might include basic, intermediate and advanced membership levels. Users can access live tutoring, certification programs and community events, among other benefits, as they reach specific goals, which validate the next subscription tier.
Incorporate Social Value Into The Subscription
The power of social value is among the most underutilised retention mechanisms. Subscription-based apps can retain users' interest in both the app and the social capital it offers by incorporating aspects of community, rivalry or common objectives. Apps for productivity or fitness, for instance, could include functions like leaderboards, team-based objectives or group challenges. Because they are part of a community rather than just an app, these communal features provide users with even more motivation to stay.
Create An “Evergreen Value” Model With Exclusive Content
Subscription models are frequently based on a fixed library of features or material that users eventually find old. Subscription-based apps ought to strive for evergreen value instead, providing a steady flow of fresh, unique material. Apps for media, education and creative tools can benefit greatly from this strategy. To keep users interested, a design app can, for example, include monthly masterclasses or unique design resources. In addition to justifying the cost of the membership, regularly updated material builds customer anticipation and encourages them to continue their subscription.
Cultivate Transparency And Authenticity In Communication
Transparency is a key distinction at a time when consumers are growing more cautious of hidden fees, obtrusive upgrades and auto-renewal traps. By being transparent about paying cycles, making it simple to unsubscribe, and giving customers the ability to suspend or modify their plans, subscription apps can foster confidence. Despite the fact that it might seem paradoxical, developing a simple departure route can increase user loyalty. Users are more likely to use the app again and refer others to it when they believe they are not being tricked.
(The author is the Co-Founder & Chief Strategy Officer at AdCounty Media)
