The prime advantages of a subscription model for app marketing

A subscription model is an excellent way to monetize your app. It is a great app marketing method that offers your app better MRR (Monthly Recurring Revenue). The subscription model enables you to develop a value-based connection with your application’s users.

What is the subscription app business model?

In traditional business models, people buy a single app at a given price. In the subscription model, users pay a recurring fee and get repeat value from the app.
The recurrence of value is an important aspect of the subscription model. A recurring fee must be ably complemented by delivery of frequent value. This business model is very effective for apps that people keep using regularly.

Advantages of subscription apps

1. The subscription model for app marketing is simple to execute.

Subscription apps are easy for both app developers and app users. Here customers are saved from making repeated purchases every month. As there is no need for the business to strive for new orders from existing customers, the time and effort savings thus result in increased productivity and enhanced product delivery. Furthermore, as customers know the amount to be paid beforehand, they can plan their budget better. As a result, revenue predictability is also increased.

2. Good relationship with your app users

In the case of a one-time purchase at a stated price, the relationship between you and your customer mostly ends. You might need to put a lot of effort into convincing your customer so that they can purchase a product from you again.

But, in the subscription business model, you can get repeat revenue from your app and keep giving your customers repeat value such as upgrades. Your app users will find this highly rewarding and imminently strengthen your relationship with them.
3. Your app’s customers become your assets.

In subscription apps, a customer you acquire for your app becomes your valuable asset. The longer the customers are connected with you and your app, the greater your revenue.
In the single-purchase app model, your customer’s LTV (lifetime value) is fixed by the price at which the single-purchase is made. Therefore, you can recover the user acquisition costs over the customers’ lifetime association with you and your app with subscription apps. Once the investment is fully recovered, whatever you earn from retaining the customer is all profit for you.

4. Customer engagement leads to app improvement.

Subscription apps usually increase subscriber engagement which in turn drives your application’s features. Here, your app’s users will always look for value addition every time they make that recurring fee to you. So when your customers get that value addition they expected, you build a touchpoint with your app’s users. This approach opens a new world of opportunities for you.

Your loyal customer base will facilitate improving your app with their feedback. When you wish to test your new app ideas, you can fall back on your customers’ opinions.
Such a healthy relationship with your app’s users helps a lively business with a two-way value exchange.
5. Efficient cash flow management

Subscription apps give better payment safety for your apps. It facilitates automatic online transactions and enables regular payments from your app’s users. Thus, cash is generated consistently, and overall business stability is enhanced. You can incorporate subscription billing software, late payment reminders, payment follow-ups, etc., in your business operations for better cash flow management.

6. More marketing opportunities

In the subscription business model, customers can be easily reached and better engaged. You can opt for email campaigns to benefit from cross-selling and upselling. With a better understanding of your users’ preferences and behaviors, you can fine-tune your marketing strategies effectively. You can get testimonials from your regular users to improve your business image and achieve increased customer acquisition and retention.

Arche Softronix can ensure efficient subscription-model based apps that delivers regular business, increased stability, consistent cash flow, better ROI, improved customer engagement, and high business growth. Contact us to know more about our services today!



Leave a comment

Your email address will not be published. Required fields are marked *