New report suggests app makers should charge more if they want people to buy subscriptions
August 15, 2017 | Uncategorized
A new report from Liftoff, a Silicon Valley-based mobile app marketing and retargeting firm, says that subscription-based apps may do better if developers charge a higher price for services, rather than setting prices too low to lure users in initially.
The Liftoff report, which analyzed data gathered between June 2016 and June 2017, categorized app subscriptions into low-cost monthly subs ($0.99 to $7), medium ($7 to $20), and high-cost subs ($20 to $50), while also factoring the cost of acquisition per customer. The company found that apps in the medium price range had the highest conversion rate — 7.16 percent — and the lowest cost to acquire a subscriber, at just over $106 dollars. This was five times higher than the rate of people…
