App Sub Benchmark

Subscription Apps
Funnel benchmarks
@thomasbcn
Organic // Subs apps funnel benchmarks @thomasbcn © 2023
Everyone wants benchmarks

Sources
Where to find subscription apps data?

Sources
Also check:
- Public companies (S1)
. Industry events
- Partners you work with
- Friends & peers
- web subscriptions reports
Public Sources

Install to subscription*

Subs apps funnel

Install to trial

Install to trial
3.7% median
4.6% average

Install to trial

Trial to paying sub

Trial to paying sub

Renewals

Renewals

Year1 renewal: VC guidance 50+%
Parsa
“The best in class companies I have

worked with fall within the
following benchmarks”, @ncsh

VC “guidance”
Duolingo 2022:
$300+ million yearly revenue
$6+ billion valuation
40% year1 renewal (yearly plans)
9% yearly renewal (monthly plans)

VC “guidance”
Calm 2020:
$150+ million revenue
$2 billion valuation
$100+ millions installs
4 millions paying subscriptions
= 4% install to paying subscription
before most international expansion

VC “guidance”

VC “guidance”

Thomas’ version

US iOS US iOS WW & Android
Great Average ranges
IPM ? ? ?
CPI ? ? ?
Install to view paywall 80%+ 80%+ 80%+
Install to trial* 10+% 5-10% 1-9%
Trial to pay 30-60% 25-50% 20-50%
ARPPU (LTV) $100+* $50-100+ $20-100
Monthly retention 6+ 4-5 3-5
Year1 renewal 50+% 30-40% 20-40%
Payback* First transaction / First transaction First transaction

<3m / <12m / <12m

How many users see your paywall?

How many paywalls users see?

IPM ? ? ?
CPI ? ? ?
Install to trial* 10+% 5-10% 1-9%
Trial to pay 30-60% 25-50% 20-50%
ARPPU (LTV) $100+* $50-100+ $20-100
Year1 renewal 50+% 30-40% 20-40%

<3m / <12m / <12m

IPM ? ? ?
CPI ? ? ?
Install to trial 10+% 5-10% 1-9%
Trial to pay 30-60% 25-50% 20-50%
ARPPU (LTV) $100+* $50-100+ $20-100
Year1 renewal 50+% 30-40% 20-40%

<3m / <12m / <12m

Great Average WW & Android
ranges
IPM ? ? ?
CPI ? ? ?
Trial to pay 30-60% 25-50% 20-50%
ARPPU (LTV) $100+* $50-100+ $20-100
Year1 renewal 50+% 30-40% 20-40%

<3m / <12m / <12m

US/t1 iOS US/t1 iOS WW & Android
IPM ? ? ?
CPI ? ? ?
Trial to pay 30-60% 25-50% 15-50%
ARPPU (LTV) $100+* $50-100+ $20-100
Year1 renewal 50+% 30-40% 20-40%

<3m / <12m / <12m

Subs apps funnel TLDR
1-15% 20-60% 10-80%

Unit Economics 101
Scenario1 (great)
$120 ARPPU
50% trial to paying sub
10% install to trial
= $6 ARPI
blended CPI <$2 to get ROAS>3
Scenario2 (average)
$50 ARPPU
5% install to trial
= $0.75 ARPI
blended CPI <$0.25 to get ROAS>3

Subs apps are hard
Scenario1 (great)
$100 ARPPU
10% install to trial
= $5 ARPI
blended CPI <$2 to get ROAS>3
Scenario2 (average)
$50 ARPPU
5% install to trial
= $0.75 ARPI
blended CPI <$0.25 to get ROAS>3

What benchmarks don’t tell

“MOFU”

click on paywall CTA trial start?

“BOFU”

Refunds too!

Subs apps funnels

have many intermediary steps
and/or specific conditions

17% install to trial!

17% install to trial! $11.99 yearly price

Install trial started…
Fitness app?
Workout tracker & coach

Fitness app
• 7-day trial
• 100% monthly
• $9.99/m?

Fitness app
• 7-day trial
• 100% monthly
• $9.99/m
< 1 million installs?

Fitness app
• 7-day trial
• 100% monthly
• $9.99/m
< 1 million installs
• Onboarding first screen?

• From “view all plans”?
• From a push notification?
• From a click on a feature lock
ARPPU (LTV) …
Video Editor
• 70% trials, 30% introductory offers
• 60% monthly, 40% yearly
• $14.99/month, $99/year
40 million installs

ARPPU (LTV) …
Video Editor
• 70% trials, 30% introductory offers
• 60% monthly, 40% yearly
• $14.99/month, $99/year
40 million installs
Android tablets
Mexico

Refund rate …
Weather app
• 3- & 7-day trials
• Weekly, monthly & lifetime plans
• Price adjusted in every geography
100 million installs
Iphone Pro Max
USA
TikTok Ads Organic // Subs apps funnel benchmarks @thomasbcn © 2023
Over time…

Metric
Install to paying sub…
Vertical
Kids app Type of plan
• 14-day trials Duration
• Weekly & monthly
• $49/year Pricepoint
8 million installs Scale/stage
Ipad Platform + device
Germany Country
TikTok Channel
Sept. 2023 Time
Funnel metrics
have massive variance
across segments
+ There are too many segments

Install to trial
+20%!

Trickling down is a myth

Changes in any step

impacts downstream metrics

How many users actually

pass the paywall ?

There is a natural tension between monetization & retention
(and between retention and organic acquisition)
“Aggressive in-app communications might have

a negative effect on your user retention,
even though it slightly increases the conversion to trial”,
Michal Langmajer
Parsa

What’s your freemium strategy?
Viral Social Duolingo, “Hard” Scam

Many shades
hits networks Strava, Hevy paywall subs
of grey here
Lower ARPU Higher ARPU
Organic acq. More paid UA
Where are you?

Don’t focus much on benchmarks!

Benchmarks suck
are suboptimal

Benchmarks bias

What to do instead

What to do instead
• Focus on your own metrics

Aim at improving yesterday’s

What to do instead

• Look at all funnel steps & segments

But never in isolation!

What to do instead

• Look at all funnel steps

But never in isolation!
• Play the long game

Don’t bait into public vanity metrics

@thomasbcn Organic // Subs apps funnel benchmarks @thomasbcn © 2023
@thomasbcn Organic // Subs apps funnel benchmarks @thomasbcn © 2023

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Subscription Apps

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Where to find subscription apps data?

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

“The best in class companies I have

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

40% year1 renewal (yearly plans)

9% yearly renewal (monthly plans)

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

= 4% install to paying subscription

before most international expansion

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Install to view paywall 80%+ 80%+ 80%+

Install to trial* 10+% 5-10% 1-9%

Trial to pay 30-60% 25-50% 20-50%

ARPPU (LTV) $100+* $50-100+ $20-100

Monthly retention 6+ 4-5 3-5

Year1 renewal 50+% 30-40% 20-40%

Payback* First transaction / First transaction First transaction

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Install to view paywall 80%+ 80%+ 80%+

Install to trial* 10+% 5-10% 1-9%

Trial to pay 30-60% 25-50% 20-50%

ARPPU (LTV) $100+* $50-100+ $20-100

Monthly retention 6+ 4-5 3-5

Year1 renewal 50+% 30-40% 20-40%

Payback* First transaction / First transaction First transaction

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Install to view paywall 80%+ 80%+ 80%+

Install to trial 10+% 5-10% 1-9%

Trial to pay 30-60% 25-50% 20-50%

ARPPU (LTV) $100+* $50-100+ $20-100

Monthly retention 6+ 4-5 3-5

Year1 renewal 50+% 30-40% 20-40%

Payback* First transaction / First transaction First transaction

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Install to view paywall 80%+ 80%+ 80%+

Install to trial 10+% 5-10% 1-9%

Trial to pay 30-60% 25-50% 20-50%

ARPPU (LTV) $100+* $50-100+ $20-100

Monthly retention 6+ 4-5 3-5

Year1 renewal 50+% 30-40% 20-40%

Payback* First transaction / First transaction First transaction

Organic // Subs apps funnel benchmarks @thomasbcn © 2023

Install to view paywall 80%+ 80%+ 80%+

Install to trial 10+% 5-10% 1-9%

Trial to pay 30-60% 25-50% 15-50%

ARPPU (LTV) $100+* $50-100+ $20-100