3 MINUTES BULLSHIT WITH GEORGE #32: Monetization via CRM for Subscription Apps with Robert Vaternam

Episode #32 of 3 MINUTES BULLSHIT WITH GEORGE featured Robert Vaternam, CRM Expert at Lykon. We discussed how to get money from CRM if you are a subscription app.

You can listen to the full episode here:

In this episode of 3 MINUTES BULLSHIT WITH GEORGE, George Natsvlishvili is joined by Robert Vaternam, CRM Expert at Lykon. Lykon is an app, that provides users with nutritional guidance based on their DNA and blood test results.

Robert shares his experience as a Mobile Growth Expert about monetization via different CRM and Retention strategies for subscription apps.

Check out all the other episodes of 3 MINUTES BULLSHIT WITH GEORGE on our website or on Youtube channel.

Connect with Robert and Lykon here:

Timestamps:

00:00 Dance

00:15 Robert’s Introduction

00:30 Monetization via CRM for Subscription Apps

04:03 Bloopers

Transcript & Key takeaways from the episode:

Emphasizing the benefit over the price is crucial when convincing users about subscription value in your CRM campaigns. Communicating how paying for a subscription enables specific actions that align with users' goals enhances user understanding.
The focus should shift from a sales-driven approach to highlighting the product's benefits and values for users' app usage and personal lives. Directing attention towards benefits rather than the price aids in users' decision-making process. Long-term subscription goals align with users' needs, as seen in scenarios like Netflix usage over time.
Value presentation is deemed more effective for subscription-based apps, as opposed to a price-centric approach. Highlighting the value of premium features reduces churn rates compared to solely pricing-focused strategies.
Users are more likely to pay when they perceive the product fulfilling their needs, even after considering the price. Users' commitment is higher when convinced of a product's value proposition, reducing the likelihood of losing them to competitors based solely on price considerations.

George: I’m curious about how to make money out of retention. And how you can convince people to pay if you are a subscription app? What is your experience using of course CRM?

Robert: Yeah. Interesting topic, George. Like I think the biggest thing that you experience everywhere is that apps just want to sell their subscription for a deal, for a sale and just to convince users to unlock premium features or something like that.

But like in all the tests I did and all the companies I worked with, it was always good to tell the user what is the benefit of that subscription, so you can tell them the features that they unlock but what is the benefit for them? So, for example, to explain hey when you pay this amount of money every day, every session, every month, then you can use the premium feature and with that feature, you can do this, and this, and this specific action, that will bring you closer to your goal or to the action that you want to do.

So I would say we should go away a little bit more or should go away from that sale, money-reducing approach and we should go more and… don't talk that much about the price. We should more talk about the product, the benefits, and the value for the user because when our brain sees a euro sign there is already an alarm going online: “George wants to bring me here for three minutes and then he wants just to sell me his book that he has not read”.

So I think yeah, having a subscription, having a price it's fair and we should not talk about the price because the product is good enough for the price and it should be not a discussion. So just name the benefits, the values, and why this will help you in the app usage and for your private life. And when the user made the decision in his head, her head it's said that it's just: “Oh nice. That's right. For that function, I could cover this, and this in this pain point”. And then the price doesn't matter anymore. And then you can test around with different price models, copies, or layouts.

And this in the latest companies, I worked especially for subscriptions worked the most, because subscription is always a long-term goal when you want to learn something, when you watch Netflix you want to also watch that in a few months. So the long-term benefit and the subscription fit perfectly together. Love that.

George: Cool. So you are taking that it's better to show value if you are a subscription-based app, yes? Versus to show just the price and based on the prices. It’s better to show the value and benefits to get people on board.

Robert: Exactly. When you see a big sales sign and then 30% off only this week. It's nice. But what will you do with that subscription? So your churn rate is way higher when you get people only buying from the price point, but when you convince them for the benefit of your premium features that you unlock or the functionality in general when you're at this completely behind the payroll, then you will convince them for the value of the product you gave them and the price is not the main focus anymore in their heads.

So the prices… you are completely convinced you need that, you want to learn, you want to date, you want to play, you want to listen to music, and when you completely think this product will fill your need at best. Then you see the price and “Okay, but I will pay, I can pay it, I will pay it”. And if it's too expensive or has too less benefits, then you can search for a competitor, but you're not losing them out of the money.

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