RevenueCat 2024 Benchmarks
The “2024 Mobile App Benchmark Report” from RevenueCat’s State of Subscription Apps Report distills key performance metrics and trends across the mobile app industry, leveraging comprehensive data from over 30,000 apps. This report, curated by RevenueCat, is essential for app developers and marketers seeking to benchmark their app’s performance against industry standards in areas such as conversion rates, retention challenges, revenue achievements, and user engagement strategies.

Methodology & Data Source

Data for this analysis comes directly from RevenueCat, tracking over $6.7 billion in subscription app revenue and offering an in-depth look at the subscription app landscape. RevenueCat’s dataset, covering apps from niche indie projects to top 100 giants, provides a solid foundation for understanding the complexities of the app market today.

Understanding Conversion Rates

The 2024 Mobile App Benchmark Report reveals a stark reality: only 1.7% of app downloads result in a conversion to paying subscribers. This low conversion rate highlights the critical need for apps to have a compelling value proposition and effective targeting from the outset.

Actionable Advice

Improve your app’s conversion rate by introducing the paywall at the beginning of the user’s journey and ensuring it’s presented consistently through in-app messages, push notifications, and other engagement tools. This strategy leverages early user engagement and continuously reinforces your app’s value, encouraging more users to convert.

Addressing Retention Challenges

The average 12-month subscriber retention has seen a significant 14% drop across all categories. The variance in retention rates—from 40% in top apps to below 20% in others—underscores the importance of developing targeted retention strategies to maintain user interest and loyalty.

Actionable Advice

To mitigate retention challenges, focus on enhancing user engagement and delivering continuous value through personalized strategies, such as tailored content recommendations and loyalty rewards. Utilizing data analytics to pinpoint and address drop-off points within the user journey can lead to improved retention rates.

Maximizing Revenue Among Top Performers

Data indicates that the top 5% of newly launched apps generate over 200x more monthly revenue than those in the bottom quartile, a year after launch. This disparity underscores the challenging nature of achieving financial success in the app market.

Actionable Advice

Given the slim chances of becoming a top earner, developers should focus on niche markets to offer unique value, diversify revenue streams, and continuously refine their app based on user feedback. Embracing lean development and cost-effective marketing strategies can support sustained business growth.

Exploiting Reactivation Opportunities

With over 10% of churned monthly subscribers re-subscribing within 12 months, there’s a substantial opportunity for developers to implement win-back strategies effectively.

Actionable Advice

Seize reactivation opportunities by deploying targeted re-engagement campaigns that address the initial reasons for churn. Offering tailored incentives and highlighting new features or content can not only bring users back but also enhance your app’s overall value proposition.

Pricing and Packaging Insights

The data shows a trend towards common price points: $4.99 for weekly, $9.99 for monthly, and $29.99 for yearly subscriptions. This indicates a standardization in pricing strategies across the app market.

Actionable Advice

To set your app apart, consider experimenting with pricing adjustments and unique bundles. Testing prices outside these common benchmarks, based on user feedback and insights, can help identify strategies that enhance both revenue and user retention.

Conversion Strategies: Trial Periods

Nearly half of all apps utilize trial periods, with durations of 5-9 days being preferred to balance user engagement with conversion efficiency. This strategy aims to optimize the initial user experience and encourage subscription commitments.

Actionable Advice

Assess the effectiveness of your trial period by conducting A/B testing to determine the optimal length that maximizes user conversion. Adjustments to trial duration can significantly impact your app’s conversion rates.

Addressing Trial Conversion Rate Declines

The decline in trial conversion rates from 40.5% to 37.3% suggests increasing competition and changing user preferences. Enhancing the value offered during the trial can counteract this trend.

Actionable Advice

Enhance trial value with exclusive content or features and refine your onboarding process to clearly communicate benefits. This approach can help increase trial conversion rates by making the value proposition more compelling.

Retention Tactics: Subscription Durations

Retention rates vary across subscription durations, with annual plans indicating higher levels of commitment despite lower initial renewal rates.

Actionable Advice

Emphasize the long-term value of annual subscriptions from the beginning. Introducing loyalty rewards or exclusive content for long-term subscribers can improve initial renewal rates and overall retention.

Churn Reasons and Solutions

Over 23% of app churn on the App Store is attributed to billing errors, stressing the importance of a frictionless payment experience for users.

Actionable Advice

Minimize churn caused by billing errors through regular audits and enhancements of your payment process. Clear communication for billing issues and providing easy methods for users to update their payment information are essential.

Monetization Insights: LTV Variance and Category Performance

The average Realized LTV per download in North America is $0.35, significantly higher than the global average. This variation underlines the importance of region-specific monetization strategies.

Actionable Advice

Customize your marketing and monetization efforts based on regional LTV potentials and consumer behaviors. For apps outside the Health & Fitness category, which leads in monetization, consider adding wellness features or partnerships to enhance value.

Offer Usage Insights

About 9% of apps leverage offers to boost engagement and conversions, indicating a strategic yet underutilized tactic.

Actionable Advice

Incorporate special offers like limited-time discounts or exclusive content access into your engagement strategies. Monitor these offers’ performance to refine future campaigns for better conversion rates and user satisfaction.

Growth Rate Insights: Milestones and Annual Revenue Growth

Reaching $1k in monthly revenue is a significant hurdle, with only 17% of apps achieving this milestone. However, apps that reach this early milestone often see accelerated growth.

Actionable Advice

After hitting initial revenue milestones, focus on scaling what works by analyzing user data and optimizing your app. Consider exploring untapped markets or demographics for continuous growth.

Category-Specific Insights

Success rates vary significantly by category, with Social & Lifestyle apps more likely to surpass the $25k monthly revenue mark.

Actionable Advice

Adjust your growth and monetization strategies according to your app’s category. Innovate within categories with high early success but lower overall breakthrough rates. For categories with higher revenue potentials, expand on successful strategies to sustain growth momentum.

अंतिम विचार

Armed with the insights from RevenueCat’s comprehensive analysis, developers and marketers have the tools they need to craft experiences that resonate with users, achieve sustainable growth, and redefine what it means to be successful in the mobile app space. The “2024 Mobile App Benchmark Report” isn’t just a reflection of the current state of the industry—it’s a beacon for those committed to shaping its future.

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