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Apple Introduces App Subscription Offer Codes

September 10th, 2020

Apple Introduces App Subscription Offer Codes
David Bell

by David Bell

CEO at Gummicube, Inc.

When an app subscription runs out, users have a decision to make: are they getting their money’s worth enough to resubscribe? Apple has added subscription management tools in the past, such as app subscription billing grace periods, subscription free trials and subscription discounts. Now it’s expanding on the offerings with new subscription Offer Codes on iOS 14, which can be distributed online and offline to attract and maintain users.

Subscription Offer Codes

Subscription Offer Codes expand on existing discount options and make them easier to distribute and redeem. Each is a unique, one-time use code that iOS 14 users can use.

The Offer Codes can be redeemed on the App Store, through a URL, or within the app. For a code to be redeemed within the app, developers will need to implement the presentCodeRedemptionSheet API.

How They Work

When developers create a new code, they can choose from three different pricing options:

  • A free Offer Code, which will provide free access for the duration of the offer
  • A pay-as-you-go offer, that bills the user at the discounted price at each billing period until the discount expires, at which point it reverts to normal pricing
  • A pay-up-front offer, which lets users pay a discounted price in advance before billing begins

The code can then be distributed in any way the developer sees fit, such as through email or printed out and delivered with a physical product. Each code can be redeemed once, and customers can only use one code per offer, although developers can provide multiple offers per subscription.

Developers can select the customer eligibility rules, timing, pricing, duration and number of codes available. Each code will expire after six months if not redeemed.

What Makes Offer Codes Different

Offer Codes are different from existing Introductory Offers or Promotional Offers. While Introductory Offers are aimed at new users and Promotional Offers are designed for user retention and reacquisition, Offer Codes can be used for new and returning users alike.

The codes are designed to help with acquiring, retaining, and winning back subscribers in a different way than the existing offers.

A key unique feature about Offer Codes is that they can be distributed through any digital or offline method and redeemed in a variety of ways.

Introductory Offers and Promotional Offers are distributed and redeemed within the app or on the App Store. While Offer Codes are used for the app, they can be distributed in any number of ways outside of the App Store, from printed codes to email links.

This opens new opportunities for developers to offer discounted app subscriptions to new or returning users outside of and in addition to in-app offers.

What This Means for Developers

Subscription offers can be a useful tool for user acquisition and re-engagement. If a user is on the fence about subscribing, or they aren’t sure if the app is worth the expense, providing a discounted offer or free trial can give them the encouraging push they need to convert.

By being able to distribute offers outside of the app or its store listing, developers can reach users in more ways, such as at events or through email marketing campaigns. This can help draw users to the app and turn them into returning subscribers even after the initial offer has expired.

It’s important to remember that even with the Offer Code, users will still need to make the decision to download your app. If the app listing doesn’t utilize its creatives and description to appear relevant to their needs, they won’t install it. This is why an optimized App Store listing is essential.

Well-designed and tested creatives, along with an informative and easy-to-read description, can make all the difference between a new user and a lost sale. While promotional offers are great ways to bring users to an app page, there’s no code that can substitute for proper App Store Optimization.

Want to learn more about App Store Optimization? Contact Gummicube and we’ll help get your strategy started.

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