Skylight · B2C · digital family calendars and frames
Send the device's QR code to an Apple in-app purchase instead of a web checkout
Over 100% more conversions, on a small slice of users
Workedpayments-checkoutpaywall
What they did
Non-subscribers on the Skylight device could scan a QR code to subscribe; it used to open a web checkout. Flipped it to Apple in-app purchase so the user scans and subscribes on their phone in one step. Skylight also kept IAP rather than moving subscriptions to the web after anti-steering changes, because their test showed the conversion gain from less friction outweighs the 30%/15% Apple fee (only a fraction of subscribers pay via Apple, since most subscribe in the owned web channel).
What happened
Over 100% increase in conversion for that flow; lower absolute impact than the price increase because few users go through it.
- Effort
- One clean test ('we've only done really one good one')
“We used to have on our device, if somebody was not subscribing and they scanned a QR code, it would lead to a web-based checkout. We flipped that to Apple and we saw over 100% increase in conversion.”
“And so, it seems like this juicy pot of money that for me at least in the test we've done, has paid itself off in an increased conversion through reduced friction.”
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More from this episode
- Skylight: Raise the yearly plan from $39 to $79, not the $99 tests favoredMinimal loss of subscribers or retention; ARR curve 'transformative'; no exact numbers
- Skylight: Keep old customers on the old price, and honor it for anyone who asksGave up an estimated couple million dollars for goodwill; no measured effect
- Skylight: Knock money off the device when people buy it with the subscriptionMuch higher subscription attach on the own website than on Amazon or in stores; no numbers
- Skylight: Test a free trial, with and without asking for a credit cardNo extra subscribers; trial takers were people who'd have subscribed anyway
- Skylight: Make every first purchase cover what you paid to get the customerEvery order in company history paid back on day zero; grew without VC money
- Skylight: Borrow from risk-tolerant lenders at 15-20% to buy holiday inventory, not raise VCStayed bootstrapped and profitable; paid 15-20% a year at times
- Skylight: Keep what people bought the device for free; charge for new add-ons like meal planningPhotos-on-calendar paywall 'just worked' for years; now some customers want it free
- Skylight: Don't mark which features are premium once someone has subscribedRenewal rates high even for light users of paid features; no numbers
- Skylight: Survey customers on whether the product is life-changing, and build to raise that shareAbout 20% say life-changing today; goal is 50%
- Skylight: Push marketing spend on a new calendar product before the product was goodDidn't work; nearly killed the product; took off only after product fixes in fall 2022
- Skylight: Sell the device everywhere: your own site, Amazon, Costco and Best BuyCalled very successful; retail acts as a quality stamp, but lowers subscription attach
- Skylight: Change how you show what's in the subscription bundleRarely moved the share of buyers who subscribe