Apple Contingent Pricing: What it Could Mean for App Developers
December 22nd, 2023
What is Apple Contingent Pricing?
Announced on December 15, 2023, Apple’s new feature allows developers to offer discounts to different subscriptions as long as users have an active one. This can be applied to one app or several, across different developers. Piloting a new way to promote user loyalty and cross-app collaborations, Contingent Pricing incentivizes continued app engagement, fosters app discovery, and can effectively extend customer lifetime value.
Apple’s Contingent Pricing also creates tremendous opportunities for partnerships between app developers. While companies can provide offers for their own apps they can do the same with an app published by a different developer entirely. This opens the door to new cross-sell possibilities not previously available through Apple’s ecosystem.
Keeping app retention and app engagement high is a priority for any app developer, especially if the experience involves a subscription where users expect to get their money’s worth. Whether it’s to offset waning user engagement or aid users in discovering your other subscription plans, Apple Contingent Pricing can help. Consider the following examples:
Simultaneously, Apple’s Contingent Pricing adds another tool to developers’ arsenal of monetization strategies. Developers will be able to curate offers based on trends specific to their app and the behaviors within it, regardless of how their other channels are performing. This is important considering there may be minimal or no overlap between the purchasing behaviors of users primarily using your brand’s website versus your app.
App Partnership Opportunities & ASO Implications
Apple Contingent Pricing allows developers to offer discounts for subscriptions within their app or across different ones they may own. However, this discount-sharing potential isn’t limited to apps housed by the same developer. Users can enjoy discounts for subscriptions on other apps owned by two different companies.
Apple’s new feature enables collaboration between subscription apps that may have complementary services or even contain upgraded features exclusively found on another app. Consider the following examples:
The emergence of collaborations between developers can bring changes to the way mobile app marketing is approached. Whereas before there were little ways to directly link apps to one another monetarily, Apple Contingent Pricing allows app developers to introduce users to other apps they might own and need to build traction for. It also allows two different developers to explore partnerships in a way that doesn’t need to leave Apple’s ecosystem.
Apple Contingent Pricing: Looking Towards the Future
While still being gradually rolled out, Contingent Pricing may adapt and change by the time it rolls out in the near future. It’s up to developers to stay up to date with App Store news and consistently adapt their ASO strategies to stay relevant in an ever-evolving market.
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