The benefits of using mobile app subscriptions

When mobile apps first hit the market, advertising was the main source of income for developers. This, unfortunately, lead to an oversaturation of in-app ads that negatively affected the overall user experience. Over the last five years, however, app businesses have changed their tactics and developed new ways of generating revenue without interrupting the UX. Here’s a look at what mobile app subscriptions are and how they can be beneficial.

What are app subscriptions?

Mobile app subscription services are a way of charging users a monthly fee for access to your app or higher levels of service which the free version does not offer. There are several different variations of subscription services, such as SAAS, currently in use by developers. The major app markets now include millions of subscription-based apps across a range of industries such as music, entertainment, fitness and finance.

Increased revenue streams

One of the most beneficial factors of utilising a subscription-based app service is the potential for much higher revenue figures. In the current mobile market, apps that offer subscriptions earn up to three times more on average than apps which rely entirely on advertising. The app model has also shown to earn around 50% more than services which offer in-app purchases.

More consistent income

Not only do subscriptions bring in the highest income, they also provide a more consistent and steady stream of revenue. If you focus your marketing strategy towards cultivating a loyal consumer base, you will generate monthly income that will allow you to create more accurate financial forecasts.

More diverse retention options

Using a subscription platform allows you to create more options for mobile users when it comes to payment. Whereas paid apps simply offer a single rate, subscriptions can be offered in different tiers to appeal to a wider range of consumers. This allows you to maximise your market reach and diversify your user portfolio without compromising on the quality of your app.

Increased engagement

There is no guarantee that every consumer who subscribes to your app will be constantly engaging on a daily basis, however, figures suggest that users who pay a subscription are more likely to carry out longer and more frequent sessions. Assuming that your service is offering something back to the user, they will usually spend more time using the app in order to get a return on the money they have spent.