GTM Sauce

Sub Club by RevenueCat · 2023-02-22

Top Growth and Monetization Insights for Subscription Apps — Sylvain Gauchet, Babbel and Growth Gems

David Barnard reads ~20 'growth gems' curated by Sylvain Gauchet (Babbel, Growth Gems newsletter) and the two discuss them: stage-dependent strategy, LTV/CAC and realized LTV, engagement before growth, paid vs organic mix, monthly-only launch plans, proxy metrics, onboarding as a product, surveys for pricing, paywall exposure, outcome-led paywall copy, abandoned-cart style paywall retargeting, gifting, and later annual upsells. Company examples: Pok Pok's price doubling, Reflectly's weekly release cadence, Canva's paywall copy win.

Play the episode

9 tactics

Pok Pok · B2C · kids play app

Revenue more than doubled and conversions rose, but the higher-price cohorts' retention quickly tanked

Doubled the subscription price. Conversions held and even rose, so short-term revenue more than doubled. Looking at the cohorts soon after showed the subscribers who paid the higher price were not retaining. Host's lesson: pair price tests with cohort retention as a counter-metric; a price that feels unfair can also hurt word of mouth.

Mixedpricing
Sub Club by RevenueCat · 2023-02-22

PhotoRoom · B2C · photo background removal app

No numbers; guest says monthly renewals show real retention early, at a cash-flow cost

At launch offered only a monthly subscription (no annual) so every month subscribers re-confirm they still want the product; watched how people churned and talked to churners to improve the product. Guest's framing: run it for at least a few months, then add a yearly plan and compare. Trade-off: less upfront cash than annual plans, which matters if you reinvest in ads.

Unknownpricingfeature-development
Sub Club by RevenueCat · 2023-02-22

Instead of A/B testing, released an app update every 7 days that changed something big (onboarding was a focus), then compared the prior 7 days of performance against the next 7 days as a simple weekly cohort.

Unknownexperimentationonboarding
Sub Club by RevenueCat · 2023-02-22

Canva · online design tool

One of the year's biggest growth wins, per a podcast the guest heard; no numbers

Paywall copy originally highlighted what engineers were proud of. Changed it to the benefit users were actually looking for. Guest suggests finding that benefit by asking users why they downloaded the app and reusing their words in paywall and onboarding copy.

Workedpaywall
Sub Club by RevenueCat · 2023-02-22

A subscription app · B2C · gem author's former employer

About a third of December sales; many gifts bought by existing customers

Offered gift subscriptions; around the December holidays they made up about a third of sales, largely bought by existing customers. Implementation not described for this company. Hosts' notes on how: sell a one-time (non-renewing) in-app purchase that grants the recipient one year of access (e.g. via a RevenueCat promotional entitlement) or sell gift codes through Shopify for email-driven traffic; don't discount too much since gifts don't renew; time it for Christmas, Black Friday, Valentine's Day.

Workedupsell-expansionpricing
Sub Club by RevenueCat · 2023-02-22

Burner · B2C · second phone number app

No numbers; a heavy A/B-testing team still relies on it for context

Uses user surveys to decide which features go behind the paywall and how much users will pay, with the Gabor-Granger and Van Westendorp pricing models, alongside heavy A/B testing and user interviews. Guest: treat survey answers with a grain of salt and A/B test prices once there is enough volume; pricing talks can start before building.

Unknownpricingpaywall
Sub Club by RevenueCat · 2023-02-22

Rise Science · B2C · sleep app

No numbers; experimented a lot to nurture intent toward the paywall

Onboarding explains how the product affects the user's life and why they should care rather than showing how to use the app ('if you need a tutorial, it's too complicated'). Because better sleep takes weeks to feel, Rise used more screens to convince users up front and nurture intent toward the paywall, and iterated heavily through experiments.

Unknownonboarding
Sub Club by RevenueCat · 2023-02-22

Practitioner pattern · David Barnard (RevenueCat employee; plugs RevenueCat cohorting, realized LTV charts, integrations and promotional entitlements)

No numbers; guest says some convert at a 10% discount

Track paywall interaction events (swiping, selecting a price package, trying to open a paywalled feature) even when the user never taps subscribe. Put those users in a segment and later send CRM messages with personalization or a modest discount, like e-commerce abandoned-cart flows. Don't send too fast and don't discount too much (guest: some people will convert at 10% off). Users who just close the paywall show low intent.

Unknownpaywallemail
Sub Club by RevenueCat · 2023-02-22

Don't only push the longer plan at sign-up, when users haven't seen value yet. Find engaged monthly subscribers (e.g. after their first 3 months) and pitch the yearly plan as a way to save money. Later the upsell can also be to a higher tier (pro/elite/platinum) rather than just a longer duration.

Unknownupsell-expansionpricing
Sub Club by RevenueCat · 2023-02-22

Numbers mentioned

WhoMetricValueContextWhen
Pok Pokprice+100%
approximate
Subscription price doubled25:08
Pok Pokrevenuemore than doubled
approximate
Short-term revenue after doubling the price; conversions also rose25:08
Pok Pokretentionquickly started to tank
approximate
Retention of cohorts that paid the doubled price25:28
Hannah Parvaz's previous companyshare33%/month
approximate
Gift purchases as a share of December sales; many bought by existing customers1:14:51
aggregateRevenueCat subscription app benchmark report, median appconversion rate3%
approximate
Median download -> paid conversion; ~97% of people who open an app never pay1:05:00
benchmarkHow far ahead of realized return subscription apps can spend on adspayback period2–3 months
approximate
Host: hard for any app to spend much ahead of a 60-90 day return on ad spend11:18