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

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 LinkedInLinks & ResourcesCheck out RevenueCat onlineEpisode 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.