Solved: Low Conversion Rate for New VPN App's Paid Subscriptions

Hi there,

Thanks for getting in touch. I'm happy to give you some initial thoughts and guidance on your VPN app's conversion issues. It sounds like you've got a bit of a pickle on your hands, but don't worry, it's a common problem when launching a new app, especially in a competitive market.

We'll need to look at that User Journey...

First off, that 0.1% conversion rate from install to paid is, frankly, not great. You're right to be concerned. The first thing I'd look at is the entire user journey. What happens the moment someone installs the app? Is the onboarding process smooth and intuitive? Or is it clunky and confusing?

People are lazy, and they've got tons of apps to choose from. If your app isn't easy to use and doesn't immediately demonstrate its value, they'll just uninstall it and move on. Think about it from the user's perspective. They've downloaded your app, probably based on the promise of enhanced security and privacy. But what do they see when they first open it? Are they greeted with a clear explanation of the app's features and benefits? Or are they bombarded with confusing options and technical jargon?

Make sure the onboarding process is simple and straightforward. Highlight the key features and benefits of your app, and make it easy for users to get started. Consider a step-by-step tutorial or a short video that walks them through the basics.

I'd say you should offer a Free Trial...

I would really really recommend offering a free trial of the premium features. I know it sounds counterintuitive to give away your product for free, but it's one of the most effective ways to convert free users into paying customers. People want to know what they're paying for before they commit. A free trial gives them the opportunity to experience the full value of your app without any risk.

When designing your free trial, think about what features are most likely to entice users to upgrade. Is it faster connection speeds? Access to a wider range of servers? Ad-free browsing? Choose the features that offer the greatest value and make them available during the trial period.

When the trial period ends, send users a friendly reminder that their trial is about to expire and highlight the benefits of upgrading to a paid subscription. Consider offering a special discount or bonus to encourage them to subscribe.

You probably should optimise your Pricing...

Your pricing might be wrong. It's easy to overvalue or undervalue a product, especially a new product, so I recommend doing some competitor analysis and seeing how yours compares. Look at what other VPN apps are charging for similar features and services. Are you priced competitively? Or are you significantly higher or lower than your competitors?

If you're priced higher than your competitors, you need to justify the higher price with superior features, performance, or customer support. If you're priced lower, you might be perceived as being cheap or inferior. I've seen a lot of companies overvalue or undervalue a product, especially a new product, so I recommend doing some competitor analysis and seeing how yours compares.

Consider offering multiple pricing tiers to cater to different user needs and budgets. A basic plan with limited features might be suitable for casual users, while a premium plan with advanced features could be targeted at more demanding users.

You could even offer a lifetime plan. It's an upfront cost for the user but they never have to pay again.

You'll need In-App Messaging...

Are you using in-app messaging to nudge people towards a paid subscription? A well-timed offer or a free trial of the premium features could work wonders. One option would be a pop-up that appears after a user has been using the app for a certain amount of time, offering them a discount on a paid subscription. Or you could send them a push notification highlighting a new feature that's only available to paid subscribers.

But you gotta be careful with in-app messaging. You don't want to bombard users with too many messages or interrupt their experience with irrelevant offers. That'll just annoy them and make them more likely to uninstall the app. I’d say, make sure the messaging is targeted, relevant, and timely. Only send messages to users who are likely to be interested in the offer, and make sure the message is delivered at the right time.

I remember one app growth campaign we worked on, where we helped a software client achieve over 45,000 signups at under £2 cost per signup using Meta Ads, TikTok Ads, Apple Ads, and Google Ads. A key part of this was optimising in app messaging.

I've detailed my main recommendations for you below:

Launching a new app is a hard task, especially in a competitive industry like VPNs. You'll need a carefully considered strategy and you might benefit from expert help.

I hope this is all helpful, and I'm happy to help out more if you'd like to book in a free consultation. It's a good opportunity for us to deep dive together.

Regards,

Team @ Lukas Holschuh