In this webinar, Roberto from AppAgent will share his experience with auditing and unlocking growth opportunities for subscription-based apps. Join to learn the 3 most important elements that you should focus on to get past the tipping point and profitably scale your app.
2. WHO IS APPAGENT?
Founded in 2016, AppAgent is a strategic & creative marketing
partner for top game and app publishers.
The team consists of 30 people from 14 nationalities and
various specializations.
AppAgent was awarded App Marketing Agency of the Year in
2018 and 2020 while it has been shortlisted ever since 2017.
6. LET’S DEFINE WHAT THE GROWTH PHASE IS FOR YOUR COMPANY
1st Phase 2nd Phase 3rd Phase
Traction Transition Growth
7. 3 PHASES OF GROWTH FOR A STARTUP*: TRACTION | TRANSITION | GROWTH
* Source: Brain Balfour | Traction vs Growth
1 2 3
Traction Transition Growth
Goal Product - Market Fit Discovery Growth Levers
Turning Up
Growth Levers
Metric Retention Monetization Growth Rate
Team
8. 3 PHASES OF GROWTH FOR A STARTUP*: TRACTION | TRANSITION | GROWTH
1 2 3
Traction Transition Growth
Goal Product - Market Fit Discovery Growth Levers
Turning Up
Growth Levers
Metric Retention Monetization Growth Rate
Team
* Source: Brain Balfour | Traction vs Growth
9. 3 PHASES OF GROWTH FOR A STARTUP*: TRACTION | TRANSITION | GROWTH
1 2 3
Traction Transition Growth
Goal Product - Market Fit Discovery Growth Levers
Turning Up
Growth Levers
Metric Retention Monetization Growth Rate
Team
SCALING
starts here
* Source: Brain Balfour | Traction vs Growth
10. WHO CAN BENEFIT THE MOST FROM THIS WEBINAR?
• Founders, Marketers and Product Managers
• Working to grow a subscription-based app
• Currently in TRACTION or TRANSITION phase
11. WHAT YOU ARE GOING TO LEARN TODAY?
Strategy | Why you need to care about these 2 concepts: USP & POSITIONING
12. WHAT YOU ARE GOING TO LEARN TODAY?
Strategy | Why you need to care about these 2 concepts: USP & POSITIONING
Growth | The underestimated DAY-ONE OPPORTUNITY to find profitability ASAP
13. WHAT YOU ARE GOING TO LEARN TODAY?
Strategy | Why you need to care about these 2 concepts: USP & POSITIONING
Growth | The underestimated DAY-ONE OPPORTUNITY to find profitability ASAP
Tactics | 3 recommendations on how to improve your Conversion Rate from INSTALLS TO SUBSCRIPTION
15. USP = UNIQUE SELLING PROPOSITION
Definition:
“A unique selling proposition
(USP) refers to the unique benefit
exhibited by a company, service,
product or brand that enables it
to stand out from competitors.”
Wikipedia
16. SCALABILITY ASSESSMENT | EASY CHECKLIST
What is needed? Status
Strong USP (Unique Selling Proposition) ❏
Market size ❏
Standard product/service ❏
Access to distribution channels ❏
Main assets and key resources can be scaled ❏
Good cost/revenues structure ❏
17. SCALABILITY ASSESSMENT | EASY CHECKLIST
What is needed? Status
Strong USP (Unique Selling Proposition) ❌
Market size ✅
Standard product/service ✅
Access to distribution channels ✅
Main assets and key resources can be scaled ✅
Good cost/revenues structure ❌
HERE IS WHERE MOST COMPANIES FAIL ❌
18. TOP REASONS FOR STARTUPS TO FAIL
HERE IS WHERE MOST COMPANIES FAIL ❌
● Unable to reach Product-Market Fit
● Unable to monetize (LTV > CAC)
● or unable to show future value
Source: CBINSIGHTS 2021 (LINK)
19. HOW CAN YOU STAND OUT FROM THE CROWD?
BIG PART OF THE SOLUTION IS USP
● Unique: different from the competitors | relevant | logical choice
● Selling: strong enough to persuade people to pay for it
● Proposition: related to the benefit you provide or the problem you solve
Source: Google Play Store | Meditation apps
24. YOU NEED A STRONG USP
AND A WELL THOUGHT OUT POSITIONING
Definition:
“Positioning is the act of
deliberately defining how you are
the best at something that a
defined market care a lot about.”
April Dunford
25. HOW TO ISOLATE, TARGET AND WIN A MARKET
Head to head
Big Fish,
Small pond
Create a
New Game
3 approaches to positioning based on the recommended book 👀
26. POSITIONING TO WIN AN EXISTING MARKET? (e.g. Meditation)
Head to head
Big Fish,
Small pond
Create a
New Game
LEADERS OF THE CATEGORY
TO CONSIDER
● The users already know what to expect
● You don’t have to convince people about the category
● Rarely suitable for new apps
● To be considered in case of Strong USP + money to invest
Your
App
VS
27. POSITIONING TO WIN A SUBSEGMENT OF AN EXISTING MARKET (e.g. Weight Loss)
Head to head
Big Fish,
Small pond
Create a
New Game
VS
LEADERS OF THE CATEGORY
TO CONSIDER
● You focus on unsatisfied + important needs of the users
● It could be a way to start and then to expand later
● The market needs to be big enough (at least on short term)
28. POSITIONING TO WIN A NEW MARKET (e.g. Chatbot companion)
Head to head
Big Fish,
Small pond
Create a
New Game
?
YOUR
APP
?
FUTURE LEADERS OF THE CATEGORY
TO CONSIDER
● You need to create the demand first or get high visibility
● Difficult style of positioning (to be chosen by exclusion)
● Often connected to new emerging technologies
29. YOUR USP AND POSITIONING CAN IMPACT THE PERFORMANCE OF THE FULL FUNNEL
IMPRESSIONS
CLICKS
STORE PAGE VIEWS
INSTALLS
REGISTRATIONS (Onboarding)
TRIAL STARTS
SUBSCRIPTIONS
ACTIVATIONS
SUMMARY:
● Ads more relevant (lower CPM | better CTR)
● Higher conversion rate on store (lower CPI)
● Better product metrics (e.g. Retention Rate)
● Better monetization (lower CAC, higher LTV)
● Higher chance so reach Product-Market Fit
RENEWALS
31. LET’S DO SOME MATHEMATICS…
TO FIND PROFITABILITY ASAP
32. LTV
ROAS =
CPA
RETURN ON AD SPENDING
COST PER ACTION (NEW SUBSCRIPTION)
LIFETIME VALUE (13 Months)
33. CPI /
Conversion Rate
INSTALL to SUBSCRIPTION
=
CPA
LTV
ROAS =
CPA
RETURN ON AD SPENDING
COST PER ACTION (NEW SUBSCRIPTION)
LIFETIME VALUE (13 Months)
34. CPI /
Conversion Rate
INSTALL to SUB.
OUR UPDATED FORMULA READY TO USE
LTV
ROAS =
RETURN ON AD SPENDING
LIFETIME VALUE (13 Months)
35. VIABILITY CALCULATOR | WHERE TO FOCUS TO FIND PROFITABILITY ASAP
IMPRESSIONS
CLICKS
STORE PAGE VIEWS
INSTALLS
REGISTRATIONS (Onboarding)
TRIAL STARTS
SUBSCRIPTIONS
ACTIVATIONS
CPI
Conversion Rate
INSTALL to SUB.
RENEWALS
LTV
3 MAIN ELEMENTS TO CONSIDER:
● More you grow, more the CPI tends to flatten or increase
● CPI depends on the channel and seasonality
● The challenge is to keep it low while scaling
36. VIABILITY CALCULATOR | WHERE TO FOCUS TO FIND PROFITABILITY ASAP
IMPRESSIONS
CLICKS
STORE PAGE VIEWS
INSTALLS
REGISTRATIONS (Onboarding)
TRIAL STARTS
SUBSCRIPTIONS
ACTIVATIONS
CPI
Conversion Rate
INSTALL to SUB.
RENEWALS
LTV
3 MAIN ELEMENTS TO CONSIDER:
● High intent of the user after the install
● It depends a lot on your onboarding and paywall
● It depends a lot on your USP and Positioning
37. VIABILITY CALCULATOR | WHERE TO FOCUS TO FIND PROFITABILITY ASAP
IMPRESSIONS
CLICKS
STORE PAGE VIEWS
INSTALLS
REGISTRATIONS (Onboarding)
TRIAL STARTS
SUBSCRIPTIONS
ACTIVATIONS
CPI
Conversion Rate
INSTALL to SUB.
RENEWALS
LTV
3 MAIN ELEMENTS TO CONSIDER:
● It takes time to improve it
● It depends on Retention Rate and Pricing Plans
38. VIABILITY CALCULATOR | SIMPLIFIED SCENARIO
OUR FORMULA TO CALCULATE ROAS
CPI /
Conversion Rate
INSTALL to SUB.
LTV
ROAS =
LTV
CPI
Scenario A Scenario B
Conversion Rate
INSTALL to SUB.
ROAS
5$
2%
140$
5$
4%
140$
(13 Months)
39. VIABILITY CALCULATOR | SIMPLIFIED SCENARIO
OUR FORMULA TO CALCULATE ROAS
CPI /
Conversion Rate
INSTALL to SUB.
LTV
ROAS =
LTV
CPI
Scenario A Scenario B
Conversion Rate
INSTALL to SUB.
ROAS
5$
2%
140$
56%
5$
4%
140$
112%
(13 Months)
40. “Over 85% of the users purchase
the first minute after the download.”
Carolin Rohte | Director of User Acquisition at
YAZIO Fasting & Food Tracker
42. WHEN DO THE MAJORITY OF SUBSCRIPTIONS OCCUR?
Source: Liftoff - Subscription Apps Report: User Acquisition Trends and Benchmarks 2017
ON AVERAGE, IT TAKES 3 HOURS FOR A
USER TO CONVERT TO SUBSCRIPTION
AFTER THE INSTALL
● Charging a MEDIUM price actually
delays the Install-to-Subscription time
only by 11 minutes (vs LOW price).
● Even for apps with a HIGH subscription
price, the initial decision to subscribe
happens within 24 hours.
43. DON’T MISS THE DAY-ONE OPPORTUNITY,
IT COULD BE YOUR LAST CHANCE.
45. 1. ONBOARDING AND PAYWALL TESTING IS A MUST
ENABLE TESTING + BE GOOD AT TESTING + BE BRAVE
��🏻
46. 2. BE CONSISTENT WITH YOUR USP AND PITCH IT ALL THE TIME
Example | Fastic: Intermittent Fasting
PREPARE THE STATE OF MIND OF THE USER BEFORE THE PAYWALL → BETTER CONVERSION RATE
47. 3. BALANCE THE FIRST TO IMPACT THE SECOND
ONBOARDING
COMPLETION RATE
PAYWALL
CONVERSION RATE
Example | Test LONG vs SHORT version of the onboarding
49. MAIN TAKEAWAYS
Food for thought:
● If you want to SCALE… then you need a STRONG USP that is working together with your POSITIONING.
50. MAIN TAKEAWAYS
Food for thought:
● If you want to SCALE… then you need a STRONG USP that is working together with your POSITIONING.
● Most of the time, there is a DAY-ONE OPPORTUNITY… Take it!
51. MAIN TAKEAWAYS
Food for thought:
● If you want to SCALE… then you need a STRONG USP that is working together with your POSITIONING.
● Most of the time, there is a DAY-ONE OPPORTUNITY… Take it!
● Be good and especially BRAVE (if needed) when testing onboarding and paywall.
52. MAIN TAKEAWAYS
Food for thought:
● If you want to SCALE… then you need a STRONG USP that is working together with your POSITIONING.
● Most of the time, there is a DAY-ONE OPPORTUNITY… Take it!
● Be good and especially BRAVE (if needed) when testing onboarding and paywall.
● Pitch about your USP all the time and BALANCE USER PSYCHOLOGY to keep the willingness to pay high.