| Source | https://www.youtube.com/watch?v=YWFyNli2oPA |
|---|---|
| Readwise URL | https://read.readwise.io/read/01kty5bbh3wtdt3zzkw1wg5csy |
| Readwise ID | 01kty5bbh3wtdt3zzkw1wg5csy |
| Date | 2023-12-05 |
| Author | App Masters |
| Category | video |
| Cover image | https://i.ytimg.com/vi/YWFyNli2oPA/sddefault.jpg |
talk to me about your monetization strategy we had this rule when we launched that we should always have at least one test active on our pay wall at every time that helped us optimize our mization model really well over the years when I hear from other people about discounting they go well it’s going to impact my LTV what do you have to say to those people I’d like to say you’re wrong well of course it depends as in every situation in the world you
should always test something but in our experience discounting works all the time the thing is you have to be smart about it of course you shouldn’t just give your product at the lowest price possible and that’s all you should try to understand at which moments and at which prices the users are ready to buy and are not ready to buy so discounting flow is something that we’ve worked on as well something that I would like to highlight is that we have multiple discounts so you know you have this main
discount on your main pay wall the full price and the seasonal discount and it is something that works right from the beginning then when you close the pay wall we can show a special offer for 50% off and then maybe the next day when you come back and you try to read the summary we show another offer of 70% off I see this mistake quite often with especially early stage apps and startups they delay starting work monetization to
like the moment when they are really sure that the product fits the users that it solves their problem and I would say that it is a mistake because you know you will need to find the right monetization model at some point and the sooner the better it works really well when you show a discount at an high excitement moment for the user so for example here the only thing that separates me as a user from reaching my goal from doing something that I’m excited for from reading the summary is
the offer so this is the moment when I’m super ready super eager to buy it to start the discount to start the subscription and when you just show a discount without any connection to your product to your main value proposition it may not work so I think that this is what works on most on boardings as well what you said was really true that most subscriptions are taken on the onboarding like 80% plus of your will
come from your on boarding usually what we do is we don’t offer free trial for a discount I can confirm that non-trial discounts work better there are a lot of hypothesis you have to balance LTV and when you have this drop off between the trial and the paid subscription you know the user who buy at discounts they are less ready to pay well they didn’t buy the main subscription so maybe their conversion rate from trial to pay subscription will be even lower than the one that you have on your main paywall so when it’s a non-trial plan you kind
of make your lcv a bit higher with the fact that it is not in trial plan why does Headway ask so many questions during the onboarding long funnels work quite well especially for web but for mobile apps too our main hypothesis is the feeling of personalization that the user gets when they answer all these questions they feel like every answer will be counted in by the product and it will be Super Hyper personalized for me for my exact needs what makes even
better is that this can increase your conversions on the onboarding and it can increase your retention decrease your cancellation rate after the user purchases because you can actually use this data and you can show the user relevant content you can add to their Library what they chose on the quiz and that is something that we do as well so they already see the content that they agreed to before and it really helps improve the product metrix as well says I have a question sometimes for Google Play and I have seen this too the
Google Play Store cannot get the subscription payment from the customer so they typically you start a trial and then Google has a really hard time processing have you seen that Eva on your end on the Android side of things I actually haven’t um got a lot of experience with Google Play but of course this happens on iOS 2 when the user doesn’t have enough funds on the card or maybe something else happens so what Apple has in these cases are these billion retry Logics that you can enable in your abore account and you should
definitely do that to try to gather as much money as many conversions as you can get but I’m not sure about the Google Play Sammy says what would be the best strategy to increase Ina purchases for chat gbt app the best way is build for the outcome unless you got a huge marketing budget to spend on paid acquisition you know chat GP is great for many things essay writing paragraph writing homework build for the outcome Focus your ASO and your keywords off of that and then you know you should see
higher conversions because you don’t know when people are searching for chat GPT what they’re looking for but what I do know is if you have an AI essay writer it’s higher conversions if you rank for that and you’re building your features towards that versus just being a blanket chat bot because you can’t compete with the open AI official ask AI Genie you’re not going to be able to compete with those guys what is the main reason for pre-and on the web to app campaigns user acquisition channels audience diversify ation that’s the
short answer in today’s competitive app market space how do you see the future of app marketing involving what are Trends app developers and marketers should be aware of oh that’s interesting I think that it will get harder and harder to Target the Right audience and we will have to find new ways to track and to find these audiences one of the trends that I see right now is that creative targeting gets more and more important so now your main instrument for finding the right audience is using
the right ad using the right creative so that is one of the trends that I think will continue but of course you know AI it’s a Hot Topic right now and it’s a Hot Topic I think it will be for some time for sure it might change a lot of ways of ours and it’s really hard to predict how but I think that it will definitely influence and it’s already influenc in our marketing strategies K ask how do you stand out among other competitors you must understand what
your strengths are and what your weaknesses are and double down on your strengths for example the covers of summaries on Headway so this was one of our unique value prositions that we had compared to for example blinkist some years ago so they didn’t have these beautiful like customade crafted covers and we had amazing illustrators who did that and that was something that made our product very eye-catching and seem like an eye candy so that was something that work worked for us for a while as
an example of using your strength yeah those are the beautiful covers that I love when you’re standing out from the competition like lean into the niche versus like leaning into like I always pick on meditation because I’ve worked with so many meditation apps or even chat gbt apps these days like lean into the niche what Niche are you building for and then lean into that especially as a startup you want to find that’s the easiest way to find product Market Fit Fast and make sure people want your product in terms of Revenue and being in the more Niche allows you to increase
your conversions the more Niche you are the more the higher those conversions are as well great question from Sam what is the best practice to show pay wall to users will it work if you launch a pay wall on every app open of course you should test it but the rule of thumb is show the payall as often as and as early as you can so on the onboarding then if the user doesn’t buy there show discounts in the second open Target some specific inap events with your discounts what you should keep in mind is that the
average user life cycle on any app is quite short so it might be like one week for you and you don’t have that much time to try to monetize the user so you should just try to do it as early as you can if I don’t have an onboarding screen will it hurt if users open the app and see the pay wall after this the loading screen it will hurt so you must have an onboarding screen at least some screens Lardo say hey guys I was number one for
a keyword and suddenly one day I fell out of that position what could I have done wrong I had one client making six figures a month 100,000 plus and you know they made some switches to be stripe versus apple and apppp purchases we were number one for a keyword we lost rankings around the same time that we made that switch so I believe in my opinion if you one if you haven’t updated the app that could be a problem two revenues focus on revenues what are three things that you would do first to maximize your monetization if you had
limited resources so you should focus on pay wall testing add your payall to your onboarding flow just create an onboarding flow that is value based that engages the user that Hypes them up and then show them the payall uh show at least some options on the paywall just try it maybe like multiple payment plans so maybe just don’t give a trial try that too I think that’s one of the most important things you should Define early
on is whether you need to give a free trial or not for your product for your mination models and the last thing is just highlight the value of your most valuable plan as much as you can like save x% best value plan create a decoy to highlight the value of the plan that you want them to purchase I would add add the pay Walling on boarding have different options like AA said and then discounting