Subscription Apps on Google Play: User Insights to Help Developers Win. May 2017

Similar documents
GROW OTT REVENUES: MAXIMISE CONVERSIONS & MINIMISE CHURN

GROW OTT REVENUES: MAXIMIZE CONVERSIONS & MINIMIZE CHURN

1 01. Customer Acquisition vs. Customer retention: the big challenge The role of Retention Marketing in e-commerce

How to drive customer retention in e-commerce. 7 tips to transform your online business and thrive

A BUYER S GUIDE TO CHOOSING A MOBILE MARKETING PLATFORM

Ambassador Program. Information Guide

INTRODUCTION KEY LESSON FOR 2016 IT S ALL ABOUT TIME SURVEY DETAILS

Channel Mix: eharmony

Subscription Commerce: Mapping & Measuring the Subscriber Journey

Grow Revenue by Decreasing Cart Abandonment and Increasing Sale Frequency

Marketing Mobile with Mobile: Lessons in Strategy

By: Aderatis Marketing

Your Business. with. Inbound Marketing

Hidden Keys to Higher Customer Retention Unlock Revenue and Faster Growth. The Subscription People

Post-digital customers On my terms

LIKES ARE GREAT, LEADS ARE BETTER

MARKETING BASICS: You re Invited! GOALS

21 Exclusive Tips for Maximizing the ROI in Facebook Competitions

Your Talent Pipeline Playbook

PERSONALIZATION APP EXPERIENCE

On The Rise Or In Retreat. A Survey of the Digital Marketing Channels Driving Retail

2017 Ipsos. Ross Hugessen Mike Rodenburgh

My 1-Page Marketing Plan. Before (Prospect) During (Lead) After (Customer) 3. The Media I Will Use To Reach My Target Market

A CLEAR DIFFERENCE. Why We Are Significantly Better Than Other Digital Marketing Training Companies. Digital Marketing Skill Institute

Why Search + Social = Success For Brands The Role Of Search And Social In The Customer Life Cycle

Digital Subscription Reader Revenue. Benchmarks & Best Practices from 500+ Publications Worldwide

US Healthcare and Pharma Industry StatPack 2018

Your Talent Pipeline Playbook

The Art of Ignoring. Hi, I m Alwin Hoogerdijk and my presentation today is about the Art of Ignoring. But first let me introduce myself.

REAL-TIME ENGAGEMENT PLAYBOOK FOR MOBILE OPERATORS MAKING DATA PAY

Making a Bid For Profit. Profit-Driven Bidding Tactics in AdWords

Your Action Plan to Launch New Paid Content

Content. Client Overview. Three-Month Review. How We Helped & Results. Challenges and Solutions. Three-Month Results

INDEX 1. THE MARKETING CHALLENGE AMBASSADOR MARKETING HOW TO GET STARTED THE AMBASSADOR CANVAS USE CASE...

Digital Marketing Customer Workbook

I Want You To Win This Game!

Appealing to Today s Auto Buyer

Marketing Attractions in a World of Tech.

Behavioural targeting Driving new visitors to your site & enticing non-converting visitors back Carola York, Managing Director, Jellyfish Publishing

HOW TO ATTRACT CUSTOMERS WITH FACEBOOK

The State of Video Marketing 2019

Marketing Automation. He won t (or shouldn t) pester the CFO or bombard with information about irrelevant products.

Millennials are crowdsourcingyouhow companies and brands have the chance to do

ecommerce Loyalty? YES indeed, Mr. Customer!

USING WATCH DATA TO GROW AUDIENCE AND MAXIMIZE REVENUE PHIL GREEN, SVP BUSINESS DEVELOPMENT, NEULION DAVID DWYER, VP ANALYTICS DEVELOPMENT, NEULION

NEWS ADVANCE POST CAMPAIGN REPORT

Module #4. Traffic Tornados

Rules of the Road for KnowYourDrive

What shoppers really want from personalized marketing

Reaching Retail Customers with Individualized Insights. A brief how-to guide EB-8858 GUIDEBOOK

THE RISE OF AD BLOCKING

Jodi Navta NUTC October 2017 LinkedIn

WHY LOCALIZATION MATTERS:

A B C D E F G H I J K L M N O P Q R S T U V W X YZ. Marketing - Educating Selling

Analytics frameworks and startup stages. Farley Millano -

academy CUSTOMER LIFECYCLE MARKETING HOW TO BUILD AN AWESOME SALES & MARKETING MACHINE Ometria Academy: Customer Lifetime Marketing

Pre-Workshop Training: Niche Research

Buyer Persona Template

CONTENT STRATEGY FOR THE VISUAL CONSUMER: IT S TIME FOR BRANDS AND RETAILERS TO PUT SOCIAL PHOTOS AND VIDEOS TO WORK IN THE ONLINE SHOPPING JOURNEY

Law firms & the 7 Ps. Why is there no real legal marketing?

FOUR SOCIAL MEDIA TACTICS EVERY REAL ESTATE AGENT NEEDS

Workforce Retention Survey American Psychological Association Harris Interactive. August 2012

5 Steps to Personalized Marketing

A Beginner s Guide to In App Purchases

VIDEO 1: WHAT IS CONTENT MARKETING?

BUSINESS CUSTOMER REFERRAL PROGRAMS

Customer Success Story:

REVVING UP REFERRALS: HOW SMALL TAX FIRMS CAN BOOST REFERRALS

The Paths to Subscription. Mega Conference San Diego, CA

Winning The Back-To-School Race For Revenue. How To Make The Most Of Your Online Marketing Budget This Fall

Head-to-head: Which will win for your business?

ABA English: An elearning Leader Learns from Its Users E B C D A

BROUGHT TO YOU BY: Instagram Growth GUIDE

Platforms, brokers and connected devices What are the implications of the use of consumer data?

Uncover possibilities with predictive analytics

Marketing Metrics Handbook

2015 Hospitality Consumer Report. Get ahead of the biggest trends in the lodging and dining industries

MEASURING ROI & ATTRIBUTING SUCCESS TO DIGITAL MARKETING

CAREER PLANNER WORKBOOK

Customer lifetime value calculator, CLV calculation in business marketing and why customer lifetime value is important

Five Ways Marketing Can Drive Higher Online Commerce Revenue. Building Long-Term Relationships and Brand Advocates in the Process

TOOLKITS ADVENTURE BIZ. Social Media Best Practices IN THIS TOOLKIT WHY THIS MATTERS:

GEERT DE LAET TECHNOLOGY EVANGELIST

CT SOLAR CUSTOMER SEGMENTATION STUDY

Basics of Social Media. The why, the what, and the how for your small business or nonprofit

Gen Z Insights: What restaurants need to know

Consumer Intelligence Series: I stream, you stream Winning in a video world

The Veterinary Pharmacy A SHIFTING PARADIGM

Optimizing the Digital Experience for Fans

HOW ASSET TRACKING HELPS BUSINESSES REMAIN COMPLIANT AND AVOID STIFF FINES

Rate Design Exercise, Part 2 Focus Groups Final Report

CommuniGator. Lead Nurturing. Best Practices

INBOUND MARKETING 101: BRINGING CUSTOMERS TO YOUR BRAND

SERVICE COMBAT STRATEGY

How to Conduct an End-of-Year SOCIAL MEDIA AUDIT. That Will Drive Results & Impress Your Boss

CRM. SMS for Customer Relationship Management Software

DIGITAL STRATEGY APRIL 2016

POWER YOUR ECOMMERCE BUSINESS

5 Mind Blowing Strategies Wayne Kelly

Trade Alert: Buy the Next Big Name in Advertising

Transcription:

Subscription Apps on Google Play: User Insights to Help Developers Win May 2017 1

Revenue from subscriptions on Google Play has increased 10x in 3 years. So how can you build apps that users want to subscribe to? We talked to 2,000 Android app subscribers in the US and UK and asked them how and why they use the apps they do. We covered a variety of categories from dating to sports, and from entertainment to education and uncovered a range of insights about what, how and why people subscribe. 2

Key Findings Free trials and discounts are important tools to drive acquisition. 78% of users start with a free experience. Valuable and fresh content gets and keeps users paying. It s the most important driver in converting users from free to paid, and 44% say content keeps them paying. Users are willing to pay real money for subscription apps. Acceptable price ranges from $5 - $20 a month based on category, and few cite price as a reason to churn from a paid subscription. 3

Discovery Take a multi-channel approach to user acquisition 4

Android users discover subscription apps through many channels I was looking for a music app that had good music and a wide selection and was referred by a friend. Methods of Discovery Friends and family Search in this category Ads 21% 31% 41% Word of mouth plays a huge role in app discovery and carries a lot of weight. When it is used, fewer additional channels are employed. However it s important to remember that it s not the only channel. Social media News/Blog Used on another platform Browsing Google Play 14% 13% 11% 18% On average, 1.7 channels are used to discover new subscription apps. App invitation Required for school/work Other 2% 7% 11% Sports app subscribers reference the most channels (2.54) while entertainment app subscribers reference the least (1.36). 5

Developer Checklist 1 2 3 4 Encourage users to talk about your app. Drive referrals through Firebase Invites, reward subscribers who recommend your app to others, use influencers to help publicize your app, and interact directly with users by replying to ratings and reviews on the Play Console. Use a mix of tactics to market your apps on Google Play, including Universal App Campaigns, linking from other online properties, and nurturing your community of social networks. Communicate the value you provide via your store listing and test it with store listing experiments. Remember that app quality is important people aren t going to recommend apps that aren t up to par. Pay attention to app quality guidelines and best practices and test and use pre-launch reporting before you launch. 6

Acquisition & Conversion Give your users a reason to pay 7

A user has found and installed the free version of your app, but how do you convince them to pay? Most Important Conversion Drivers I wanted access to additional content 26% I received a discount offer 23% 78% of subscribers start with a free experience My free trial ran out I wanted the ability to remove ads I wanted the ability to use the app offline 6% 9% 17% BUY The opportunity to try an app for free can go a long way to encouraging eventual conversion, but content is key to moving beyond free. I wanted access to additional tools/features within the app I wanted access to the app on multiple devices I wanted to be able to add users/collaborate 2% Other 6% 6% 5% 8

While additional content is key as a conversion tool for most categories, discounting is more prominent in news and music. % who said that access to additional content was the most important factor % who said that receiving a discount offer was the most important factor Dating 20% 48% The app only allows 10 articles to be viewed per month for free and I read many more articles so I decided to subscribe. Education 26% 35% Health/wellness Sports News Kids Entertainment 33% 23% 32% 32% 25% 28% 24% 21% 19% 15% I had signed up for a free trial because I got some kind of offer on it. I didn t even really know what it was all about but my kids ended up loving it so I kept it and still pay a subscription for it. Music Productivity 14% 14% 15% 25% List not inclusive of all factors important in conversion. 9

Developer Checklist 1 2 3 Focus on the positives. Users want to pay for great content, not remove annoying features. Allow users to try your app before they buy with free trials. Test different discounts via introductory pricing and other promotions. 10

Pricing Get the price right 11

You ve found users willing to pay for your app, but how much do you charge them? What s an acceptable price? That varies by category, often driven by established norms or industry standards. Some categories are more flexible than others, with a wide range of acceptable prices for dating and sports, and a far narrower range for music and entertainment. What Android Users are Willing to Pay in the US (by month) Dating Education News Sports Health $20 barrier Productivity Entertainment $15 barrier Kids Music 0 5 10 15 20 25 Each category has a range of potentially viable prices. The lower boundary is the point at which a bargain becomes too cheap to be of any quality. The upper reflects the breaking point beyond which people won t even consider the purchase. 12

Budgeting approach How Android Users Budget for App Subscriptions Cross-subscription budgeting is rarely a consideration, with 64% either budgeting on a per app basis, or not budgeting at all. Few allow other subscriptions to influence their decision to pay for a single app. 16% Budget for total digital subscriptions 2% Other 32% Budget per app Honestly when things have to do with my TV or movies, I really do not pay much attention as to what any of it costs. I get what I want. 18% Budget per type of app % 32% No specific budget 13

Developer Checklist 1 2 3 Don t shy away from using the subscription business model on Google Play. Android users are willing to pay for great content across multiple subscriptions. Test different price points as there is some elasticity in subscriptions pricing for Android. Make use of our global pricing tools to localize your price to the market. 14

Engagement and Retention Create an engaging experience people want to use every day 15

You ve got them, now how do you keep them? Why Android Users Keep Paying for their Subscription Apps Total Components What encourages subscribers to stay subscribers? Content. 44% indicate content as a key reason for continuing to pay. Frequency plays a role as well. While the majority of paid Android subscribers use their apps at least daily, less than half of free users do. Content 44% Use Frequently 18% 28% 12% Content is valuable Content is updated 4% Fear of missing content 62% 48% 62% of paid Android subscribers use their apps daily or multiple times a day vs. 48% of free users. UX Price Personalised 12% 11% 7% 10% Price 1% 4% 3% Saving progress or info Special offer Personalized app Passive 5% 2% 1% 1% 1% Other 4% Contractual commitments Automatic renewal Needed for work/school Don t bother cancelling 16

Top Factor for Continuing to Pay by Category While valuable content and frequency of use are key for retention, there are some interesting differences across categories in terms of their relative influence. In dating, user experience is a big driver (20%). Pricing (15%) and freshness of content (15%) is particularly important for entertainment. 27% 20% 16% 44% 14% 12% 21% 20% 15% 15% Valuable content Frequency of use Like experience Up-to-date content Reasonable price Don t want to lose progress 28% 16% 11% 11% 26% 14% 14% 25% 20% 14% 39% 15% 12% 25% 18% 12% 35% 17% 14% 17

Why do some Android users lapse? Top reasons users stop paying for an app - by category Changing needs are a major driver of lapsing, especially in dating, education and kids subscription apps. Infrequent usage will drive churn in music, health & wellness, entertainment and news. Content wasn t valuable Frequency My needs changed Content was stale App wasn t easy to use Top Reasons Android Users Stop Paying 38% 17% 17% My needs changed I didn t use the app as much as I thought 16% 18% 21% The content was stale The content wasn t valuable 12% 13% 23% The price was unreasonable The free version was good enough I found a better alternative 7% 9% 10% Price is rarely a reason to unsubscribe 20% 27% The app wasn t easy to use I subscribed to too many apps 2% 5% 22% I didn t realize subscription had lapsed 2% 16% Other reason 6% 27% 18

Developer Checklist 1 2 3 NEW! Create a habit by giving users a reason to come back to your app on a daily basis, and use actionable notifications to drive them back. Time your content releases strategically so users feel like they re consistently getting new and updated content. Consider offering an alternative to meet changing needs in your user base, e.g. apps for older children, maintenance versions of weight loss apps, etc. 19

For more information on growing your subscriptions business with Google Play, visit the Android Developers Website. 20