6 impacts of Apple's subscription model on publishers and app developers

Apple has laid down their rules regarding subscriptions. No longer are publishers allowed to provide off-store payment as the only option but must incorporate Apple’s subscription methods in applications as an alternative.

I’m not here to cry foul or fair about the business rules, but I do appreciate three things:

  1. Publishers now have a new method of gaining customers beyond their own payment vehicles: even if there is some cannibalization of existing revenue methods this new channel provides for net new gain in terms of users;
  2. While optional for users Apple understands that subscriber data should be shared with publishers so that publishers can understand better their own user base;
  3. For Apple’s subscription functionality to be a success it has to be the easiest thing for users.

Let’s clarify this last point: Apple is incentivized here to continue to provide the simplest, most complete and understandable experience for users on behalf of the publisher. They are under pressure to provide the best system. This thinking is not a bad thing for publishers to emulate. I have put together a list of elements that publishers should consider as they update their app roadmaps:

1. Perfect your subscription story

It’s important to experiment with exactly when the user will be provided the option to subscribe. There are many real-world examples that can be used as a model but those publishers that are successful will provide a great experience prior to subscribing and will continuously educate the user on what the benefits of subscribing will be.

Apps can also do what printed media cannot: What about allowing multiple levels or pricepoints in your subscription strategy? “Would I pay $10 to subscribe for a month but $20 to subscribe without advertising” is a different proposition to “would I subscribe or not”.

The number one rule: make the benefits of subscribing significant and simple to understand.

The subscription story doesn’t end with the ‘buy now’ button. Reduce that purchase remorse. Sweeten the deal to provide optional data: offline gifts are nice but this could just as easily be additional easter-egg functionality within the app.

Once subscribed, the publisher needs to ensure that the user continues to feel delighted for having made this decision. Gradual unlocking of new functionality, additional status within the app, personalization options can all help the user retain that sense of excitement similar to having a copy of Monocle come through the mailbox.

Don’t forget to let the user shout from the rooftops that they’ve subscribed.

2. It isn’t just about content

You don’t have to be a twitter user to have seen this on the app store: before Twitter produced their own app there were many, many apps that provided access to the same content. Still are. What is remarkable is that many of these apps are paid. Developers make a living from adding a sweet user experience, extra functionality or even fun gimmicks to what is commoditized content. Don’t just think that your content has value: create an app that leverages what the device can do or that extends the content in some unusual way.

3. Give you app some real love

Now you have a contract with the user your app needs to get better. It needs to really shine and feel loved. Start with a short (maybe 6 week) cycle for app updates. Ensure that each update includes some user-level requirement and will improve the app in daily use.

4. Don’t break the app

Stability now becomes more critical than ever. You cannot afford to have your app corrupt itself when updating so make sure that you are fully testing all scenarios for upgrade prior to release to the store. If you make users reinstall your app for some technical reason you will lose a significant percentage of your user base. Now they’ve paid you, users will expect more quality.

5. Repeat touch, repeat purchase

A customer isn’t really your customer until they come back and buy again. Subscription makes is easier to push this off in time but start planning now to ensure that subscribers feel special when they are asked to re-up. Start by letting the user know in advance and periodically that their subscription will need to be renewed and ask for their feedback. Respond to the feedback. Allow a subscription to be renewed or extended at any point. Make it really easy to do this. Also, make it easy for users to gift subscriptions to their friends. I must have bought eight subscriptions to one specific magazine that I love as gifts for my friends over the years.

6. Don’t forget about engagement and the user’s need for speed

The faster an app is or feels, the more engaged users become: the longer they use the app and the more often they use the app. Tiny increases in load or operational speed can have dramatic effects on engagment. Remove any barriers that get in the way of perceived speed so that you create the ideal circumstances or value for users to feel the need to subscribe. There has never been a better time to really study how users use your app and what keeps them from using it more often.

Feel free to let me know what you would add to this list.