The Future Of The Mobile App Subscription Model
The monetization strategy for mobile apps has been, slowly but surely, changing in recent times. Recent surveys show that there are very few apps on the market that are making the big bucks from paid downloads. Unfortunately, this compels a lot of developers to veer towards overloading their apps with ads or selling user data to marketing companies.
The solution, as has been embraced by many companies, is the subscription model. Using a subscription model is a poignant way to reward a loyal customer base and have a constant, consistent revenue stream. The future of the mobile app subscription model, for developers, hinges on dealing with the inherent challenges competently and leveraging the many benefits proactively.
To make the most of the subscription model going forward, these are the areas mobile app developers need to concentrate on.
Onboarding – The biggest challenge is convincing customers to take the jump and opt in for the subscription. You need to figure out the best way to accomplish this for your app. In many cases, offering a fully-featured free trial seems a great option, giving users a taste of the full utility of your app. You should also work actively to understand and minimize roadblocks, if any, for customers looking to come on board.
Support – Since your customers would be paying a monthly subscription, they will expect faultless support. Before embracing the subscription model, therefore, it is a good idea to shore up your support capabilities. Offer competent, round-the-clock support to really seal the deal.
Content – For paying users, there is always an expectation for new content and features on a regular basis. If you opt for the subscription model, you need to commit your development efforts towards providing this regularly. Include personalization options and tiered premium content levels and you can further increase your income potential.
The future of the mobile app subscription model looks secure due to a few important benefits.
Guaranteed Income – With the subscription model, you can eliminate the uncertainty posed by in-app purchases and have a solid, dependable monthly revenue stream. This can help take your business forward. In addition, you will know exactly how much revenue is coming in and can make advance plans about how much of it to reinvest in your product. This is vital in these inflationary times, high gas prices, and supply chain issues that are occurring now.
Higher Revenue – Studies have shown that apps that implement the subscription model, in general, earn more than apps that depend purely on ads and in-app purchases. Reports also reveal that the trajectory of this revenue has been on the rise in recent years. This can bode well for your company. In addition, you can still monetize free users with a variety of techniques.
Engagement – With a monthly subscription, users are more invested in your app, making it easier for you to create and maintain engagement. New content and features can, therefore, get more traction and your user base will stay subscribed if they feel connected with your brand over time.
Something to Contemplate
Moving forward, it can be an astute idea for companies to embrace the mobile app subscription model and execute it the right way for maximum reward.