The subscription app model is becoming more and more significant by showing an exponential growth rate in a short amount of time. Huge amounts of revenue are being generated by the subscription model. Data shows that the top 100 subscription apps in the US have generated close to 4 billion dollars on the App Store and close to 1 billion dollars on the Play Store. The best part is that the full potential of this model is yet to be realized. More developers are now trying to monetize their applications via the subscription model.
What are Subscription Apps?In-app Subscription is the new meta that has recently replaced the traditional “ One-time Purchase” model. The subscription model resorts to a recurring payment model where customers need to pay a monthly subscription to access premium features. This model improves user retention rates and guarantees a regular fixed income for the developers. A subscription is a great method for mobile app retention, monetization, and boosting an app’s lifetime value which we will talk about in the next paragraph.
Why is In-app Subscription Getting Popular for App Monetization?An in-App subscription is more advantageous than the previous one-time pay model and the reasons for its recent success are as follows:
- Low entry barrier cost: The users would think twice before paying a bulk amount for the one-time payment option. In-App Subscription rates are much cheaper and this attracts users to subscribe and try out the premium version.
- Recurring pay: As discussed above, the subscription model ensures a regular, pre-calculated inflow of revenue. It also plays a huge role in customer retention and is considered to be very reliable as a source of income.
- Better Customer Relation: As subscribers pay for the services they try to utilize them to the maximum, hence with regular updates and the creation of new features, the customers would feel more connected and hence would be encouraged to remain subscribed for a longer period.
Must-have Tools for Subscriptions AppsTo ensure that this subscription model works seamlessly certain tools and services need to be used. These tools help enhance the subscription model which in turn provides long-term success and high-level performance.
- Attribution tools: They are tools that match marketing campaigns and advertisements with respect to the number of installations. It helps determine the effectiveness of a particular campaign to improve your app’s marketing performance.
i.e: Adjust; Appsflyer
- Product analytics: Product analytics is a key factor in understanding the requirements of the customers through their in-app behavior. Tools are used to gather data based on what features are famous among users and what kind of features they are expecting. These tools track their in-app activity and provide data based on that.
i.e: Mixpanel, Amplitude
- Push Notifications: The customers must always be informed about the new features and updates that the app provides. This improves customer interaction and customer experience. It might also occasionally win back lost customers. Tools must be used to send notifications fast and easily to improve user engagement and win back users.
i.e: OneSignal; Appflow.ai
- In-App Purchases Management: Proper strategy must be employed by developers to have suitable in-app purchases and in-app subscription infrastructure for real-time subscription revenue checks and further analytics. Tools must be used to develop a tailor-made personalized purchase infrastructure to improve the revenue and charge for the right features.
- Easy App Reports: Did you know you already have the KPIs and insights needed to grow your app? As incredible as it seems, both Google Play and the App Store offer that. The bad news is that it’s all on their APIs. But don’t worry, we got you. Easy App Reports handle all the technical stuff so you can have your app’s data on a nice and clean dashboard so you can focus on what really matters: interpreting the data to grow your app.
- Buzz Guru: BuzzGuru is an all-in-one influencer marketing platform for brands and agencies to perform influencer marketing campaigns from A to Z on YouTube, Instagram, TikTok, and Twitch. A collection of tools helps to get the most accurate preliminary research and analysis; plan, run and execute ad campaigns, analyze the results and get the highest ROI from influencer marketing efforts.
- Appflow.ai: In-app Subscription SDK to check in-app purchases& in-app subscriptions in real-time, and automated in-depth revenue metrics analytics, manage iOS and Android subscription events, paywall A/B testing and push-notification in one place. Transform real-time data into actionable insights with personalized suggestions.
- Adjust: Adjust is the mobile marketing analytics platform trusted by growth-driven marketers around the world, with solutions for measuring and optimizing campaigns and protecting user data. Adjust powers thousands of apps with built-in intelligence and automation, backed by responsive global customer support.
Final ThoughtLarge amounts of effort are expended to develop applications. Even with the application being technically sound, proper tools for In-App Subscriptions tools are essential to ensure a smooth and unhindered experience for both the developer and users. Understanding the concept of the subscription model and employing the appropriate strategies is critical in identifying the tools that are a must-have for your application. These tools have made complicated processes and strategies simple and doable even for small-scale developers. I hope this article provided a proper understanding of the importance of tools used to enhance and execute subscription strategies.
Must-have Tools for Subscription Apps