Any advice on pricing strategy for B2C app subscription?
Hello fellow consumer app business founders!
I’m working on a B2C app called "Lookscope" (https://www.lookscopeapp.com/) that helps users organize their personal closet and make better use of their clothing. In the past year, I’ve seen a small (yet significant!) amount of revenue and significant progress on retention and engagement metrics (e.g., % First time → Highly Active User). We're now planning to introduce a subscription model with premium features such as custom tagging and additional clothing/accessory categories which many of my users have asked for.
I'm interested in finding out what would be an appropriate pricing strategy for these premium features. I've considered asking target users how much they're willing to pay, but am also considering just launching and adjusting based on metric performance.
Additionally, I'd love to hear advice on how to handle potential complaints or negative feedback after launching the subscription model, maybe because the price is too high for the offered features.
Thanks in advance! 🙏
Hi, Jay！Congratulation on the subscription monetization decisions. Building a subscription model is hard at first because you may not know how much app users will be willing to pay for the premium features. I would recommend doing survey about how your competitors price and make your own subscription model. The price should be neither too high nor too low. I suggest you begin with the highest ones and then do A/B test to find out the most profitable ones.
We recently wrote two blogs that are concerning this topic, you can check:
https://www.appflow.ai/blog/how-to-build-a-subscription-pricing-model-for-mobile-apps
https://www.appflow.ai/blog/how-to-perfect-app-subscription-pricing-model
And if you want to track the subscription data and see how your subscription model goes, you can refer to our product. It is free for trial.
Good Luck with the subscription monetizatio!
Thanks for the info, @Vivien! Will definitely check out the articles and the product!
I would suggest keeping the prices comparatively lower because what you're offering might not be the priority for your customers and they might look at it as an addition only. So, to keep them stuck with you, you need to make sure the prices don't trouble them in the first sight.
That's a good point! What do you think about the popular view that founders often don't charge high enough? I do not have much experience in either succeeding or failing by acting on that view/strategy but I wonder if there's a smart way to navigate to find the right balance.
There's no any pre decided smart way to find the right balance. Your product and your customers are unique. You need to start with the very basic strategy of keeping the prices lower, see how it performs with people, make upgradations, add new features and then think of charging high.
One thing to consider is launching the premium features with special lower pricing for a limited-period, to encourage early uptake, and have a plan to then increase the pricing for subsequent subscribers having gotten the usual benefits from the early adopters (their initial word-of-mouth etc)
Smart! Thanks for sharing the idea!
Congratulations! Appreciated your efforts and dedication toward your vision. I would suggest that if you have gone through that much and made your app worth for users you must promote your app called AppsHive. Where you will get a chance to list your app on three different segments and you can increase your downloads by 43%
Check out the platform for more: https://www.appshive.co/
Will definitely check out, thanks for sharing!