Are you curious about how successful mobile app marketers are leveraging data to drive growth in the rapidly evolving app economy? Qonversion’s groundbreaking research on in-app subscription benchmarks will reveal everything you need to know.
Qonversion’s latest report provides valuable insights into the mobile app economy. Data collected from over 5,000 apps across 10 industries reveals key metrics such as install-to-trial conversion rates, trial-to-paid conversion rates, subscription cancellation rates, and revenue per paying user. This groundbreaking research serves as a benchmark for mobile app marketers, allowing them to make data-driven decisions and evaluate their performance in a rapidly evolving ecosystem.
Here are the key highlights from the report:
Qonversion’s report not only reveals key metrics for mobile app marketers to evaluate their performance but also provides actionable recommendations to optimize in-app subscription strategies.
The report suggests segmenting audiences, enhancing user experience, and experimenting with pricing models. However, it’s crucial to note that these strategies should only be implemented after achieving Product Market Fit (PMF) and establishing a sustainable volume of paying customers.
Once this is achieved, the focus should shift to maximizing revenue from existing customers through user research, analytics, and conversion rate optimization (CRO) activities. By understanding customer needs and preferences, app marketers can develop products or services that meet those needs and ultimately drive revenue growth.
Paywall optimization is key to monetizing your content. Learn how to optimize your paywall strategy from Jake Mor of Superwall. He delves into the question that has been plaguing app developers for a long time: how many products should be shown on a paywall to optimize conversion rates? To help provide an answer, Jake analyzed conversion rate data for a variety of applications, taking into account the number of products displayed on each paywall.
After filtering for apps with at least 2 tests with different product quantities and including the top 15 largest apps with over 10,000 paywall views, Jake found that the conversion rate was 3.77%. He also found that offering more than one product on the paywall significantly impacted the conversion rate. In fact, when the data was segmented by the number of products in each paywall, Jake discovered that offering 2 products resulted in a 61% increase in conversion rate compared to 1 product, and offering 3 products resulted in a 44% increase in conversion rate compared to 2 products.
However, Jake stresses that this data does not take into account the visibility of multiple products for purchase, pricing, or subscription duration, which can greatly affect conversion rates. He also highlights the importance of considering the default selected product and the availability of trials for each product, as trial conversion rates and subscription retention rates can vary greatly.
Jake’s conclusion is that if money is needed to fuel ad spend or operating costs, it may be best to stick to one annual product to receive money upfront. On the other hand, if short-term growth wouldn’t be affected by deferring some revenue, offering more pricing options than one would result in a higher conversion rate in most cases. However, Jake warns that ensuring the lifetime value (LTV) of all the products is the same to avoid sacrificing long-term growth for short-term gains is crucial.
Customer segmentation is the process of dividing your target audience into smaller groups based on shared characteristics, such as demographics, behavior, or needs. By segmenting your audience, you can better understand their needs and preferences and develop targeted marketing and optimization strategies that are more likely to be effective.
Some best practices for customer segmentation include:
The user experience (UX) is a critical factor in in-app subscription optimization. If users find your app confusing, difficult to use, or not providing the value they expect, they are likely to churn.
To improve the UX, you should start by conducting user research and analytics to gain a deep understanding of your users and their needs and preferences. This will help you identify areas for improvement and prioritize your UX optimization efforts. Some best practices for improving the UX include:
Another key aspect of in-app subscription optimization is testing different pricing models to determine what works best for your app and audience. Some common pricing models include:
When testing different pricing models, it’s important to consider the value your app provides, the needs and preferences of your target audience, and your overall business goals. You may also want to consider A/B testing different pricing models to determine which works best for your app and audience.
The research conducted by Qonversion provides valuable insights for mobile app marketers on key metrics such as conversion rates and revenue per paying user. It is recommended to deeply understand customer needs and preferences and achieve product-market fit before implementing optimization strategies. The research by Jake Mor of Superwall shows the impact of product offerings on conversion rates, with a focus on balancing short-term gains and long-term growth. The importance of customer segmentation and improving the user experience is also emphasized.
Overall, the information provides a comprehensive understanding of the in-app subscription landscape and the key factors that drive success in this domain.