Apple is testing a conditional reduction in the price of subscriptions on the App Store

2023-12-18 10:03:58

Apple plans to add a new feature available to app developers. This will allow them to offer conditional pricing reducing the cost of App Store subscriptions for users, only there is one condition.

©Pixabay

After killing the Beeper Mini application, the Cupertino company is trying to get the developers in its pocket. This time, it is not a question of authorizing competing App Stores on its OS but of a new way of reduce the price of subscriptions for users.

These “conditional” subscriptions allow developers to offer a discount to users on their own service as well as those of a different application. Thus, a paid service at 5.99 euros per month could allow you to obtain a reduction to 4.99 euros on a different subscription as long as the user remains subscribed.

“Contingent pricing for subscriptions on the App Store, a new feature that helps you attract and retain subscribers, allows you to offer customers a discounted subscription price as long as they are actively subscribed to another subscription .”

This would, according to Apple, allow make the different offers from developers more attractive for customers wishing to subscribe to several subscriptions. It’s overall a good idea offering users to pay a little less for a service that may interest them.

©Apple

Discounts, only if you are already subscribed, customer loyalty or retention?

However, it is likely that this news functionality is fully locked by Apple. Indeed, these purchases will certainly be made directly from the company’s personal payment service uniquely. A risky practice by the manufacturer which could well cause it to pay a heavy fine in its battle with Spotify.

In addition, as said above, users will be able to take advantage of these offers via different subscriptions from the same developer. For example, it will be possible to encourage a new user to subscribe for a reduced rate to a subsidiary service of an iPhone application without having to pay the full price.

“Conditional pricing can be used for subscriptions from the same developer or from two different developers. […] Customers can experience these price discounts in your app, in off-platform marketing channels, and in designated locations on the App Store.”

This conditional subscription feature is currently in testing phase and more information should be available in January. It’s a good tool for developers to do evolve their services and applications while retaining their customers.

On the other hand, the fact that the reduction is not applicable only on the condition that the user remains subscribed is quite debatable. Finally, in addition to a commercial offer, this could also represent a additional means of user retention for Apple and developers.

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