Getting a customer to the point of purchase is already a challenge, as most who download an app delete it within the first week. Once a user reaches the subscription milestone, retaining that user is key to having steady, reliable income.
However, customers are fickle even after putting down the money for a subscription. While weekly and monthly subscriptions tend to keep users engaged for a while, apps still see more than half of their subscribers cancel before the third renewal.
App developers and marketers have come up with various methods for retaining subscribers, by offering them a reduced price, switching them to a alternative package, or letting them freeze membership instead of cancelling. A lot of apps also let users continue to access even after cancelling subscription until the term ends, potentially re-engaging them at a later date.
As the vast majority of apps are free to download, app developers have built sophisticated methods of shifting a free user to paid. App conversion rates are another part of the user journey, and an important metric for app marketers to track.
Choosing the right subscription length can be important depending on the app category, with news and lifestyle seeing better returns on annual subscriptions, while health & fitness and photo & video see higher than average renewal rates on weekly subscriptions.
We have collected data and statistics on app renewal rates. Read on below to find out more.
Key App Renewal Statistics
- Average renewal rates for weekly subscriptions were at 73%
- For monthly subscriptions, the average renewal rate was 64%
- Only one quarter of annual subscriptions are renewed at the first renewal
- Health & Fitness apps have the best renewal rate for weekly, lifestyle apps have the highest annual renewal
Weekly Renewal Rate
Average renewal rates for weekly subscriptions were 73% for the first renewal, climbing to 75% for the second and 82% for the third renewal.
First three renewal rates for weekly subscription (%)
Monthly Renewal Rate
Monthly subscriptions have slightly lower renewal rates than weekly, at 64% for the first renewal, 71% for the second and 78% for the third.
First three renewal rates for monthly subscription (%)
Annual Renewal Rate
Average renewal rates for annual subscriptions are much lower, with only 25% of users paying for another year. This increases to 48% on the second renewal.
First two renewal rates for annual subscription (%)
Weekly Renewal Rate by Category
Renewal rates are quite consistent across the five categories. Lifestyle apps see the lowest percentage of weekly renewals.
First three renewal rates for weekly subscription by category (%)
Monthly Renewal Rate by Category
In comparison to weekly, health & fitness apps perform a little worse than other categories in monthly renewals.
First three renewal rates for monthly subscription by category (%)
Annual Renewal Rate by Category
Lifestyle apps are the best performers for annual renewals, while Photo & Video apps perform the worst.