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On this episode: The evolution of Headspace’s freemium model, balancing mission and monetization, and why referral programs sometimes work better without incentives.

Top Takeaways

💰 Don’t be afraid to experiment with gating 100% of your content. Not only can this result in a significant lift in paid users, in cases where an app requires some effort from the user (such as with meditation), getting them committed with a free trial early on can boost engagement levels versus free users.

⚠️ Promoting your strongest performing plan at the expense of your others doesn’t always have a positive effect. Let’s say your annual plan might display the best performance in terms of revenue or retention, giving it too much prominence can cause lower intent users to sign-up for it, leading to fewer trial-to-paid conversions. In these cases, giving users choice could produce the best results.

👪 Users on family plans can show the strongest retention rates. When users subscribe to your app as part of a family or group, there’s a degree of accountability involved: if one member is using it, then the others are less likely to want to cancel as a result.

🗣️ When designing onboarding experiences, think about the product and lifecycle messaging together. Having the option of communicating with users both in and out of the app means you can get more creative with your onboarding — for instance, offering a “prize” for completing the first month, and using email to remind users when they’re lagging behind.

💬 Some apps will benefit from referral schemes that are less transactional. Rather than receive some monetary reward, some apps’ users are more motivated by the intrinsic reward of being helpful. But you can experiment with more unique benefits for being a top referrer, such as exclusive content or in-person events****

About Shreya Oswal and Keya Patel

👨‍💻 Shreya is Senior Director of Product Management, Membership at Headspace, and Keya is the former Director of Product Management, Growth.

💡 Shreya: “Bringing that free trial online and letting users choose for themselves was a big win for the business and a big win for members in terms of picking the right product for them.”

💡 Keya: “Experimenting with the extreme of what happens if you condense onboarding as much as possible and ask for a conversion moment or an upsell [works] from a data perspective. So it wasn't necessarily a failure.”

👋 Shreya on LinkedIn | Twitter

👋 Keya on LinkedIn | Twitter

Links & Resources

‣ Check out Headspace

‣ Headspace for Work

‣ Headspace-Ginger merger

‣ How Freemium Can Outperform Free Trials – Shaun Steingold, Momentum Labs

‣ Connect with Shreya on LinkedIn

‣ Connect with Keya on LinkedIn

Episode Highlights

[1:53] 80/20 rule: Keya talks about Headspace’s evolving freemium strategy where 80% of their content was locked behind a paywall. They tested the effect of locking even more content — with a positive impact on conversion.

[6:26] Big shoes to fill: Shreya’s follow-up experimentation involved locking 100% of content, with a high double-digit lift. To attract long-term users to switch, they offered a 75% discount.

[8:22] Costco sample strategy: Headspace wants to continue to experiment by giving users a taste of what they can benefit from.

[10:58] Freemium do’s and don’ts: Building habits and engagement comes from commitment and early skin in the game.

[13:04] Price testing: Keya dives into the experiments and results of Headspace’s price testing efforts.

[16:18] Annual versus monthly: Where Keya left off with annual subscription efforts, Shreya picked it up from a net new, lower-intent monthly angle.

[20:55] Package experimentation: The ideal length of time for a free trial isn’t immediately clear when switching from free content with a paywall and no trial.

[24:24] Propensity m...

On the podcast, Ariel dives into the fundamentals of ASO and how to research and optimize keywords. He also explains why ratings matter much more than reviews, and why you should never, ever duplicate keywords.

Top Takeaways:

🔍 It’s not that it’s hard to get discovered with ASO — it’s that it’s hard to get discovered without doing enough ASO. Expect to spend more time exploring on the front-end, but this isn’t a “set it and forget it” strategy.

⭐ Make sure that you're optimizing for ratings: they are more impactful for discoverability than download numbers alone.

📛 When choosing an app name, make sure you put the most important keywords as early as possible.

📊 Don’t rely on intuition for your ASO strategy — always look at the data.

🔑 Spend as much time using the keywords as you do on finding them — beyond just in your text meta.

About Ariel Michaeli

👨‍💻 Founder and CEO of Appfigures.

💡 “If you only trust intuition, you probably won't see results.”

👋 LinkedIn

Links & Resources

‣ Check out Appfigures

‣ Appfigures’s Advanced ASO Secrets Guide

‣ Join Appfigures (they’re hiring!)

‣ Connect with Ariel on LinkedIn

‣ Which Keywords are Your Competitors Targeting?

Episode Highlights

[1:48] The A to Z of ASO: Should I care? they ask. Usually, it’s because they don’t know what ASO is. But it’s harder and harder to get found in the App Store, so you can’t deny the benefits.

[4:09] Black box optimization: ASO impacts both conversion and discovery, so how do you blend the two? Ariel suggests you forget about the algorithm, and focus on the people instead.

[5:52] ASO vs. SEO: So what is the difference? It’s hard to explain briefly. But you have much less control over ASO than SEO — it’s about limitations.

[9:16] Great expectations: It’s not hard to get discovered with ASO — it’s hard to get discovered without enough ASO. Understanding your app and core competitors is the foundation of changing how much impact your app makes.

[12:46] Artificial boosting: Why should older apps get more traction? The good news for new apps is that Apple has now leveled the playing field.

[18:10] ASO key factors: App name, subtitle and keywords all affect ASO. Get relevant, important keywords in as early as possible because that’s where the value is, says Ariel. Plus: Some live keyword help.

[27:24] Capture their attention: People have to understand what they’re looking at before they download an app. With apps for everything now, how do you stand out? Screenshots and video previews are the answer.

[31:35] Rate beats review: Apps with more ratings beat those with more downloads. Ratings feel more organic to users, so Apple — and its algorithm — factors this in.

[35:35] The ultimate sin: Keyword duplication is the biggest no-no. But other common ASO mistakes include ignoring popularity scores, trusting your instincts, and failing to utilize app names for keywords. (Cleaner isn’t always better where it really matters: downloads.)

[39:12] Competitive focus: With some niches, like games, up to two keywords matter. Category rookies and those in highly competitive environments should be focused. Those with more ratings and downloads should angle for other keyword combos.

[43:59] Do your research: You need to look at the data to see what keywords really matter for your app. It helps to check competitor reviews.

[49:32] Paid marketing: Number of ratings, especially on Google Play, really matters. When people don’t download, it signals no one wants it. Expect Apple to follow suit.

[51:08] Secondary ASO localizations: Apple uses English localization for keywords, but — in the U.S. — Spanish too. Use both, and you’ve got twice the keywords. Russia and other countries are on the way too, which means you can duplicate between sets (even if not within them).

On the podcast, we talk with Alice Muir about how best to onboard premium users, what lifecycle optimization looks like both tactically and strategically, and how to spot users before they churn. She shares insight into why focusing on CRMs for win-back strategies is only part of the story, and the best campaigns to entice users to stick with their subscriptions.

Top Takeaways:

📧 Email is good for two things: drip campaigns — offering a staggered, increasing discount to entice signups — and long-form content to keep premium users engaged.

📲 Consider using in-app messaging as proxy testing for paywalls if you don’t have access to A/B testing tools or are working with different regional pricing.

🎁 Using CRM for quick win-backs is a band-aid for churn — instead, you need to consistently add value to people’s lives.

🤔 Tap into human psychology and increase retention by reminding people of what they’re going to lose by unsubscribing.

💸 Balance discounts with the need to entice more high-intent users back into the app, because at some point discounts mean you’re losing money.

About Alice Muir

👨‍💻 She’s the Senior Growth Consultant at Phiture.

💡“In my experience, the low-hanging fruit is the strategy and strategic lifecycle targeting, because you would be surprised at how many apps ... have absolutely nothing in place for people that have started a trial or are already subscribers.”

👋 LinkedIn

Links & Resources

‣ Check out Phiture

‣ Phiture’s Subscription Stack

‣ Connect with Alice on LinkedIn to guest write for Phiture

‣ The 4 Foundational Frameworks of Consumer SaaS — Robbie Kellman Baxter, Peninsula Strategies

Follow us on Twitter
‣ David Barnard
‣ Jacob Eiting
‣ RevenueCat
‣ Sub Club

Episode Highlights

[2:09] Top app learnings: Alice has worked with — and learned from — a number of subscription apps.

[3:17] Subscription onboarding strategy: Many top apps in the App Store don’t have a strategy focusing on those already subscribed or who’ve started a trial. Sometimes a simple message is all that’s needed.

[7:36] Feature highlight: Premium experience onboarding must emphasize additional features — not just what the free experience offers. Asking users what they like best in each experience never hurts.

[9:59] Channel blending: Email is great for drip campaigns — offering a staggered increased discount — as well as long-form content to keep premium users engaged. Push has limitations however, so it’s better to use for win-back scenarios.

[12:54] In-app messaging: Using full-screen in-app messages that look like native paywalls can be used as a proxy for testing the latter, Alice explains — with caveats.

[19:25] Next-step growth: For big apps with a lot of data, correlation analysis is a huge area of opportunity. The same can’t be said for startup apps, which lack this data. But what does it look like?

[24:50] From correlation to causation: Alice explains her strategy for driving value from correlation and funnel analysis for drop-offs.

[27:10] Churn prevention strategy: A holistic approach to long-term success harmonizes with Robbie Kellman Baxter’s view. A cost-of-living crisis is causing people to scrutinize their costs like never before, so apps need continual content for real added value.

[32:05] Spotting the churn: Alice suggests segmenting already-disengaged users, dissecting the reason, and re-onboarding them if necessary.

[37:19] Winning win-back campaigns: Reminding people of lost benefits, creating a sense of urgency, celebrating membership, and implementing screenshot capture functionality for premium features are all possible tactics for reinforcing the value proposition.

[39:32] Mak...

On the podcast we talk with Lexi about data.ai’s State of Mobile report, the countries subscription apps should focus on for growth, and why things still look bright for apps despite a decline in overall spend.

Top Takeaways
🕹️ Mobile app spend is down, but that may not be a bad thing
🤳 Non-gaming apps see additional growth with resilient spend
✍️ The subscription model underpins growth for non-gaming apps
📈 Look to non-U.S. markets for new opportunities
💝 The most successful apps will offer frictionless, personalized experiences

About Lexi Sydow
👨‍💻 Head of Insights at data.ai, a unified data AI company that combines consumer and market data with artificial intelligence to offer insights into trends.
💡 “We’ve gotten to a place where it’s become very native behavior — not just in the app store sense, but even mobile commerce. ... It’s those habitual things that we do that reinforce our habits.”
👋 LinkedIn | Twitter

Links & Resources
‣ Get the State of Mobile 2023 report
‣ Work at data.ai (remote and hiring!)

Follow us on Twitter
‣ David Barnard
‣ Jacob Eiting
‣ RevenueCat
‣ Sub Club

Episode Highlights
[2:16] History report: From starting as “The Retrospective” to including more forward-thinking pieces, publishing the Annual State of Mobile report has been a decade of fun for data.ai — and a valuable resource for app developers.
[4:54] More reports: Lexi outlines data.ai’s various other reports that help separate real trends from massaged data.
[7:48] An evolutionary thing: Most changes to data.ai’s reports have been organic, largely thanks to a maturation of the industry, analysis, and the team’s understanding.
[11:54] It’s data, it’s AI, it’s data.ai: data.ai’s sophisticated team collects data based on their own products, utilizing AI in the process. This helps them make their own accurate estimates, and they’re proud of that.
[18:39] M.E.T.H.O.D.: Lexi dives into the hows of data collection in the age of privacy, including data.ai’s growing categorization of apps.
[21:53] Marquee landmark year: For the first time ever, spend is down. Lexi details the data and what it tells us.
[28:03] Concentrate: The top three countries for app spend have their own chart in the report. But it’s not all dominated by China, the U.S., and Japan.
[30:21] GDP transformed: While China is three or four times the size of the U.S., China’s spend is only marginally greater than the latter. There’s still a lot of headroom for China to move.
[39:30] Top app categories: In many categories, subscription apps take the top spot. Usually in the top 10, storage subscription app Google One jumped straight to number one in consumer spending this year.
[42:36] What is a phone?: It’s becoming — if it hasn’t already become — native behavior to use phones to do everything. Meaningful personalized experiences convert to subscriptions and in-app purchases.

On the podcast: Landing PR for a niche app, negotiating strategic partnerships, and pretending to have an app helped validate that he should build one.

Top Takeaways

🚀 Validate Early and Build Smartly: Start by validating your app idea with minimal investment — even just an image or a spreadsheet. Once validated, focus on creating an MVP that delivers core value to your users, allowing for effective market testing and valuable feedback. (01:06—11:00)

🎯 Mix Up Your Early Marketing: Early on, explore a mix of marketing tactics, both paid and organic, such as Apple Search Ads and targeted PR. Adapt quickly to focus on strategies that drive early user growth and traction. (11:00—14:06)

✍️ Craft Ready-to-Publish Stories for Media Pick-Up: Develop complete, compelling narratives about your app. A story that's ready-made and engaging eases journalists' workloads and increases the likelihood of your app getting featured. (12:34—15:58)

🤝 How to Close Early Partnerships: When approaching potential partnerships as an early app startup, remember that you’re a risk, so highlight your business’s reliability and responsiveness. Be proactive and flexible in negotiations, demonstrating your commitment to deliverables and reducing perceived risk to partners. (17:02—22:55)

🌐 The Broader Impact of Partnerships: Recognize that the value of partnerships extends beyond direct metrics like user acquisition. They are instrumental in building credibility, social proof points, and establishing a presence in your niche, which leads to organic growth and further collaborative opportunities. (34:41—38:13)

About Adam Allore

👨‍💻 Founder and CEO of Wavve Boating, an app that provides a better marine navigation experience that’s easy, collaborative, and fun.

⚓ Adam initially wanted to build a nautical navigation map that he would use, until he organized himself a booth at a boat show that ultimately led to him building the app thanks to overwhelming positive feedback.

💡 “The quantity of emails that we got was one thing, but seeing people light up and get excited by the app and experience that I built was what gave me that confidence to quit my job, pursue this thing full time, and make the beta a reality that I was telling people about.”

👋 LinkedIn

Links & Resources

‣ Connect with Aaron via LinkedIn

‣ Check out Wavve Boating

‣ Adam talking about the Wavve App

‣ Wavve Boating on X, formerly known as Twitter

Episode Highlights

[1:10] Ahoy, sailor: Working as an engineer, Adam realized that people struggled to read nautical navigation maps, which provided the inception point for Wavve Boating.

[4:53] Fake it till you make it: Taking the scrappy route can sometimes be the best path to kickstarting your idea — even if it requires a bit of hustle.

[7:26] Just build the beta: Even the bare MVP can be enough to attract investors and users. Unique product insight is where the margin really comes from.

[11:18] Gaining traction: Adam took a shotgun marketing approach before landing on app-based PR hits with a promising community element.

[17:15] Press power: Aaron assumed the initial press outreach kickoff would drive major user growth — it added value and drove recognition in the space (and yes, some user acquisition).

[20:26] Proactive negotiation: Potential partners (especially large ones) may view small startups as a risk — subscription app developers should aim to mitigate that risk.

[26:14] Basement finance plan: Panic led to solid planning as Adam reached out to the local angel network to raise capital and get things going, including a deal that represented his first foray into B2B sales.

[29:24] Market flows: Deep link usage for the paywall was one thing, but what really paid off for the app was ensuring it was as easy to activate and use as possible.

[32:05] DevOps on the cheap: Building for the addressable market of one company could pay off bigger if you take that idea elsewhere — if you know the business. Be careful about which projects you take on, as they may ultimately prove distractions.

[35:00] Partner-driven UA: 25% of ...