The Future of Subscription Apps (Why We’re So Excited For 2024)

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Mar 11, 2024

The podcast discusses RevenueCat's 2024 State of Subscription Apps report, highlighting the need for optimization in conversion rates and pricing strategies. It emphasizes the importance of strategic focus on different markets and the crucial role of retention in app success. Reactivation of churned subscribers becomes more impactful as the app grows, prioritizing acquisition and retention early on.

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INSIGHT

Subscription App Industry Outlook

The state of subscription apps in 2024 is strong, having rebounded from recent tumultuous years.
The market has renormalized after the pandemic and Apple's App Tracking Transparency.

INSIGHT

Subscription Fatigue Myth

Despite common narratives, subscription fatigue isn't reflected in data.
Apps provide increasing value at reasonable prices, like streaming versus cable.

INSIGHT

AI's Impact on Mobile

AI-powered apps had a breakout year, driving consumer adoption and revenue.
AI is enhancing app development and user experiences, suggesting mobile's continued relevance.

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On the podcast: RevenueCat’s 2024 State of Subscription Apps report, the state of the app industry more broadly, and why a slight drop in renewals in 2023 isn’t as bad as it may seem.

Key insights:

📈 Optimize conversion rates: With a 1.7% average conversion rate from downloads to paying subscribers, there's a wide gap indicating room for improvement. North America shows higher conversions, spotlighting the need for regional price optimization.

🗓️ Persistence pays off: The top 5% of apps outearn the bottom quartile by 200 times a year post-launch. If year one is tough, consider pivoting or trying a new approach.

🗺️ Strategic focus is key: North America leads in app revenue, but don't overlook markets like South Korea, Japan, and India. Choosing the right platform and regional focus is crucial.

💲 Retention is crucial: A 14% drop in subscriber retention highlights the need for apps to focus on retaining users who truly value their service. It's vital to distinguish between loyal users and those less engaged.

📱 Reactivation grows with scale: While over 10% of churned subscribers resubscribe, reactivation becomes significantly more impactful as your app grows. Early on, prioritize acquisition and retention over win-back campaigns.

About Guests

🎙️David Barnard is Growth Advocate at RevenueCat and host of this very podcast.

👋🏼David’s LinkedIn

💻Jacob Eiting is the CEO of RevenueCat, a self-proclaimed computer person, and often co-hosts this podcast with David.

👋🏼Jacob’s LinkedIn

Links & Resources

Check out RevenueCat online

Episode Highlights

[1:31] Weathering the storm: After several years of turmoil in the subscription app industry, things finally started to settle down in 2023 — and app businesses are thriving.

[7:12] The business of intelligence: AI technology leapt forward in 2023, and mobile AI apps saw big wins.

[14:07] Stop guessing, start acting: The benchmarks in the 2023 State of Subscription Apps report can help you make data-driven strategic decisions.

[17:37] The state of the (app) union: Five key takeaways from the report that identify industry trends, potential pitfalls, and emerging opportunities.

[38:44] First impressions matter: Most trial starts occur within 24 hours, so make sure your user onboarding experience is compelling.