RevenueCat's vast repository of subscription app data tracks nearly $2 billion in revenue across the App Store, Google Play, Amazon Appstore, and Stripe. While this treasure trove of information is not for sale, we're committed to sharing aggregate data publicly to empower developers to build better apps and increase their earnings.
Understanding Subscription App Benchmarks
When it comes to subscription app benchmarks, it's essential to use these numbers wisely. By comparing your app's performance to the broader mobile app subscription industry, you can identify areas for improvement and gauge whether your business is on track or ahead of the curve.
How to Think About Subscription App Benchmarks
Subscription app benchmarks serve as a valuable tool for gauging the success of your mobile app business. To get the most out of these numbers, consider how each step in your funnel impacts every other step – from initial awareness to annual renewal. Don't fall into the trap of setting a single benchmark and aligning all aspects of your app's development around it.
Optimizing for Long-Term Success
As Eric Crowley of GP Bullhound astutely notes, healthy subscription app businesses are thoroughbreds, not cheetahs. In other words, aim for sustained growth rather than a sprint to the finish line. This approach ensures that each step in your funnel is optimized for long-term success.
Analyzing Your Funnel
When evaluating your funnel, avoid focusing solely on trial start rates or benchmarks. Instead, consider how each step impacts the next – from initial awareness to annual renewal. For instance, a subscription photo app might initially attract users with a free trial but ultimately disappoint them with a paywall. This approach is akin to building a "cheetah" app – fast but unsustainable.
Freemium Strategies
A more effective strategy involves offering a generous freemium tier and a strong value proposition that encourages users to stick around after starting a free trial. While the ad conversion and trial start rate might appear low on paper, this approach can lead to a healthier long-term business.
Finding the Right Balance of Free and Paid Features
Balancing free and paid features is one of the most challenging aspects of building a successful subscription app. Consider offering a less generous free tier or using a "hard" paywall if users are not converting at an acceptable rate.
Don't Get Too Hung Up on Benchmarks
Remember, benchmarks can be skewed by apps with different strategies and categories. Focus on optimizing your unique funnel rather than trying to match others' performance. By doing so, you'll build a thoroughbred app that drives long-term success.