Subscriptions are generating 50% more revenue than in-app purchases, and in this MGS19 workshop, Lotta Weigeldt, former Head of Growth at Runtastic, shares ten factors for the successful monetization of the model.
Weigeldt begins by explaining that for a subscription to work, the product must possess high quality, renewable content with ongoing usage. The structure depends on whether the entire product is locked behind a paywall, like Netflix, or just certain desirable features, like Spotify Premium removing ads. Once the subscription is in place, Weigeldt suggests using in-depth reporting and core base analysis to build user segments, target and retarget subscribers, and create lookalike audiences. When pricing subscriptions, Weigeldt presents several parameters to determine value, and notes the increased opportunities for upselling, localization, user segmentation, and copywriting when using a paywall.
Weigeldt then shares some communications strategies to combat brand devaluation by conveying a sense of scarcity. The workshop concludes with advice on introducing subscriptions to an existing audience, navigating app-store regulations, and diversifying monetization, followed by a lively Q&A that’s sure to answer any lingering questions.
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