Hey there, it’s Jacob at Retention.Blog 👋
I got tired of reading high-level strategy articles, so I started writing actionable advice I would want to read.
Every Tuesday I share practical learnings you can apply to your business.
After looking at 100+ apps, here’s one tactic you should copy I don’t see anyone else doing
(and the one app doing it regularly ranks #1)
How can you reward people for using your app?
And it’s not loyalty or streaks (new users don’t care about those).
Right after your paywall to all free users:
Mention you have a reward for them if they complete the next step in the app
Create a custom new user flow that showcases your product and explains how it works
Make this easy to complete, you want people to feel good
Congratulate them on completing these first actions
Offer them a chance to pick their reward
Can you gamify this selection? (It won’t make sense for all products)
No matter what they pick, give them a good discount (50% off or more)
Position the discount as being only available for a limited time
Why should you do this?
Many new users will leave right after they see your paywall.
Even if you have a free experience, they see the price and don’t want to pay.
You need to keep free users engaged immediately after the paywall.
Reward them, but connect that reward to their engagement with the app.
This is what Impulse does and they’re regularly the #1 Health and Fitness app and always in the top-grossing charts.
It’s 100% okay to offer a discount in the first session.
Users have the highest intent in this first session. And if they don’t convert then, they’re unlikely to ever.
(Of course, test and measure. Every product is different.)
Many apps offer a discount right after the first paywall, but this isn’t ideal
They’re not convinced of the value yet, they haven’t experienced what they’re looking for, or their expectations don’t align with what they’re seeing.
Also, users converting only because of a discount won’t retain as well
Give them a break:
Show off your product more
Let them explore a little deeper (and reward them for it!)
Build more excitement
Now try to show the paywall again
This type of gamification makes sense for Impulse because their product is brain games. For other types of products this “shell game” may feel off-brand.
These free users may be price-sensitive, so pairing the offer with a discount makes sense, but price isn’t the real decision-maker
With subscription apps, it’s about the price ↔ value equation.
Different people perceive value differently because their needs are different
For some, your base price offers plenty of value. For others, the value only makes sense at a lower price.
Most free users don’t understand the value yet, and won’t want to purchase at any price.
But when they experience the value, they’ll be more receptive to a price point they feel comfortable with.
Who doesn’t like getting a deal?
Pair that deal with a limited-time offer after they’ve experienced the product and you may have a winner.
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