What is it?
Imagine presenting a discounted paywall to a user who starts a transaction but doesn't confirm it using FaceID. This method, known as a transaction abandon paywall, has proven to be a game-changer. Check out the demo below:
Transaction Abandon Demo
Apple's Take: Beware
A few apps in the cohort received scrutiny from Apple, which claims this tactic leads to "unintentional purchases." However, lower refund rates suggests otherwise. Nonetheless, this strategy can lead to issues with App Review, so act accordingly.
Thesis
The concept is simple yet powerful: transaction abandon discounts can significantly boost revenue by offering discounts to users who show interest in purchasing but don't complete them.
Statistics show that only around 50% of users complete in-app purchases once they start. By offering discounts to those who hesitate, we can convert them into paying customers and enhance overall revenue.
Initial findings indicated that up to 25-40% of revenue could be attributed to this method, so we tweeted it out a few weeks ago. Since then, tons of customers implemented their own experiments. We aggregate these results and publish them below.
Experiment
18 Companies
Control Group: 438,144 users who installed the app in the last two weeks
Variant Group: 87,403 users who started a transaction but abandoned it
Each company ran transaction abandon campaigns for at least two weeks, ensuring both control and variant groups had over 1,000 users generating more than $0 each. We also looked strictly at revenue generated from people who installed in the last two weeks.
Results
Metric | Control Group | Variant Group |
Users | 438,144 | 87,403 |
Conversions | 39,063 | 5,128 |
Conversion Rate | 8.9% | 6.3% |
Revenue | $394,960 | $80,590 |
Refunds | $26,981 | $2,643 |
Refund Rate | 6.8% | 3.3% |
Findings
Revenue Contribution: Transaction abandon paywalls account for 17% of total revenue. While it's challenging to determine how many users would have converted without the campaign, this method undeniably accelerates revenue generation and most likely increases it too.
Lower Refund Rate: Users offered better deals are less likely to seek refunds. The data does not suggest that this approach leads to unintended subscriptions, countering any concerns about "dark patterns."
User Exposure: Approximately 20% of total paywalled users will encounter a transaction abandon paywall.
Guide
Ready to boost your revenue? You can implement transaction abandon paywalls now without an app update using Superwall.
Here's a guide: Transaction Abandon Paywall Guide.