The first order of business is to understand why this is happening. Once we know more about the issue at hand, we can look into strategies to solve our problem.
This is as simple as listing hypotheses and checking your analytics (provided you’ve logged the right minimal set of events in the first place) to get insights on each of them.
Hypothesis 1: Is the purchase flow working properly in production?
Easy to test, do it yourself via the app downloaded in production or ask a family member or friend to test it. They don’t have to go all the way to spending money since that last step is pretty robust thanks to Apple but check that:
• the paywall shows properly
• the in-app purchases are loading fine
• all the buttons on the paywall are tappable
• the purchase flow starts properly with the right product when your purchase button is tapped
Hypothesis 2: Getting as many refund requests as purchases?
• Check that a premium user is actually granted the premium features after upgrading to a premium plan in your app. Sounds silly but these tiny bugs can have a devastating impact on your app’s reputation.
• Make sure people understand what they are paying for. If you don’t communicate this properly in your paywall, most users will be surprised (or disappointed), they won’t stick around and your churn will go through the roof.
Hypothesis 3: Are people actually seeing your paywall?
• Create a simple funnel showing the number of new users, who viewed your paywall. Pre-requisite: log an event every time a user sees the paywall. 100% of new users should see your paywall. Showing it on launch, after onboarding, or regularly after every 2-3 open events is recommended.
Hypothesis 3: Are people mostly dismissing your paywall?
• Option 1: Too expensive. Launch an AB test with a lower price and compare the analytics after a few weeks
• Option 2: The paywall is not clear as to what users will get by upgrading to Premium. Change the copy on the page, add a description image or video (even better) and AB test the difference in conversion rate.
• Option 3: People aren’t ready to pay for what you built. It’s not adding enough value at the moment. This is harder to diagnose. Ideally, you’d want to ask your users directly. This can be done through a little open-question survey when users dismiss your paywall, or a pop-up shown to free users with questions like “What is missing in the app for you to consider upgrading to Pro?”