ULTIMATE GUITAR
Promotional offer.
First experiments.
Scenario #1
The idea
The larger idea is to reach customers without an active subscription through push notifications, emails and in the application. The first step towards this was to test a layer with a "3 months for $0.99" promotional offer in the app. The offer was shown in the first app session after auto-renew cancelation.
Scenario
Customers, who used their free trial period a while ago, were able to get 3 months for a special price. In the first iteration, we didn't send a push notification or email.
Results
This scenario worked as expected. After a short period of testing with customers with an expired free trial period, we got a 2% conversion rate. We are confident that this number will climb to 10% after a series of experiments with periods and prices.
Scenario #2
The idea
The larger idea is to reach customers who canceled auto-renew by sending them push notifications, emails or in-app promotional offers before the expiration of their paid subscription. The first step towards this was to test a layer with a "1 month for $0.99" promotional offer in the app. The offer was shown in the first app session after auto-renew cancelation.
Scenario
To test the scenario we showed a promotional offer to customers who canceled auto-renew before the subscription expiration date. In the first iteration, we didn't send a push notification or email. We expected that customer will be charged after a current subscription expiration date.
Results
The scenario didn't work as we expected. Customers who activated a promotion offer got a refund for unused time of their current subscription. This outcome wasn't obvious from an instruction Apple has on a website.
Scenario #3
The idea
The larger idea is to create a "manage subscription" page within the app where we can offer promotions during the cancelation process. The first small step towards this was to test a banner with a promotional offer on customers who canceled their auto-renew during a free trial period. The offer was shown in the first app session after auto-renew cancelation.
Scenario
We pushed an in-app banner offer before a free trial expiration date. We offered 3 months for $0.99. We expected that customer will be charged right after purchase or after a free trial expires.
Results
The scenario didn't work as we expected. We faced two issues within this scenario:

1. A customer accepts the promotional offer during a free trial and receives a notification the purchase was successful. Right after this notification, customer receives the alert "Cannot connect to iTunes Store". As a result, a transaction wasn't created, the customer wasn't charged and a subscription wasn't activated.

2. A customer cancels auto-renew during the free trial, and we show a promotional offer. A customer accepts it and receives a notification about a successful purchase. Right after this notification, there is an alert "Cannot connect to iTunes Store". As a result, on the "manage subscription" page in iOS settings, there is information that a customer has a free trial but nothing about the recently activated promotional offer. In addition, customer's auto-renew turns back on even though it was turned off before accepting the offer.
The video below reproduces the issue

Roadmap
1
April
Focus: testing prices and periods in promotional offers
Experiments with customers with an expired subscription / free trial
  • The best period and price offers
  • Testing offer '1 month for $1'
  • Testing offer '3 months for $1'
  • Testing '1 month for free'
2
May
Focus: A/B testing with different channels
Experiments:
  • A/B testing of promotional arts and texts in push notifications
  • A/B testing of promotional arts and texts in emails
  • A/B testing of promotional arts and texts in the app
3
June
Focus: creating the "Manage Account" page for retaining customers
Experiments with customers who are going to cancel a subscription because of a price:
  • The best period and price offers
4
July
Focus: bundling promotional offers with activity within the app
Experiments:
  • Promotional offers when announcing a new feature
  • Promotional offers when customer favorite bands releasing new albums
  • Promotional offers when announcing guitar and gear giveaways
'Retaining and winning back subscribers' team
Sasha Smirnova
Product Owner
a.smirnova@ultimate-guitar.com
Jonathan Kehl
Factotum
j.kehl@ultimate-guitar.com
Alexey Oliferchik
Developer
a.oliferchik@wsmgroup.ru