Subscription App Dictionary
All the terms and acronyms you need to know while navigating the world of subscription mobile app building and growth
A
A/B testing
A method of product experimentation in which users are randomly split into two or more cohorts (e.g., Group A and Group B), with each group exposed to a different variation of a feature such as copy, design, or pricing. A primary success metric is established before the test begins, and the outcome is typically measured using frequentist statistics and confidence intervals to determine if one version outperforms the other — or if results are inconclusive.
A
ARPU Average revenue per user
A performance metric that represents the average revenue generated per user over a defined period. ARPU is calculated by dividing total revenue by the number of active users during that time frame (e.g., monthly). It can be segmented by platform, geography, or acquisition source to assess the value of different user cohorts. While related to LTV, ARPU is time-bound, whereas LTV spans the full customer lifecycle.
A
ARR Annual recurring revenue
Annual Recurring Revenue (ARR) is a financial metric used by subscription-based businesses to measure and forecast the total revenue expected from their subscriptions over a year. It's essentially the predictable income a company anticipates receiving from existing customers, renewing their subscriptions at the same rate, and any new subscriptions obtained throughout the year.
A
Activation
A key stage in the customer lifecycle that occurs after acquisition. Activation is defined by a user completing a high-value action for the first time — such as starting a trial, making a purchase, or engaging with a core feature. The exact definition depends on the app’s monetization model and business goals.
A
Active subscriber
A user who currently has an active, paid subscription. This excludes users in a grace period, trial, or lapsed state, and is typically the core population used when calculating MRR or churn rate.
A
App store optimization (ASO)
The process of improving an app’s visibility in app store search results and browse sections (e.g., on Apple’s App Store or Google Play). ASO involves optimizing elements like the app name, description, keywords, icon, screenshots, and video preview to drive organic installs and improve conversion rates from page views to downloads.
A
Apple Search Ads (ASA)
Apple’s paid user acquisition channel that displays targeted ads at the top of App Store search results. ASA allows marketers to bid on keywords, define demographic and behavioral targeting, and optimize campaigns based on user value post-install, such as subscription conversion or trial start.
A
Attribution
The process of identifying which marketing source (e.g., paid ad, referral, email) led a user to install the app or subscribe. Accurate attribution is essential for measuring ROI, optimizing campaign performance, and understanding how different channels contribute to growth.
A
Auto-renewal
A subscription setting that automatically charges users at the end of each billing cycle unless manually canceled. Auto-renewal is the default for most in-app subscriptions and contributes to predictable recurring revenue. It’s important to actively engage and retain these users, as churn typically occurs when auto-renew is disabled.
B
Backend entitlement management
The server-side system that determines which features or content a user can access based on their subscription status. Typically integrated with app store receipt and tools like like Botsi, it ensures consistent access across devices and platforms.
B
Background app activity
User engagement that occurs without directly launching the app, such as interacting with push notifications, widgets, or voice assistants. While less visible, this activity can influence retention and should be factored into engagement metrics.
B
Bayesian Statisitics
A statistical approach that updates probabilities based on new evidence, often used in A/B testing and predictive modeling. Unlike frequentist methods, Bayesian models provide a more flexible framework for interpreting test results and making probabilistic decisions — useful in pricing tests, LTV projections, and paywall optimization.
B
Behavioral segmentation
The practice of grouping users based on in-app behavior — such as content viewed, session frequency, or purchase history — to tailor messaging, paywalls, and retention strategies. Behavioral segmentation enables personalized user experiences and drives more efficient monetization.
B
Billing cycle
The interval at which a subscription renews and the user is charged — typically monthly, quarterly, or annually. Understanding billing cycles is important for tracking revenue recognition, renewal trends, and user lifetime value.
B
Billing retry logic
The automated process by which subscription platforms (e.g., Apple, Google, or a backend service) attempt to recover failed payments due to issues like expired cards or insufficient funds. Effective retry logic is essential for reducing involuntary churn and maintaining revenue continuity.
B
Break-even point
The moment when a user’s revenue (LTV) surpasses the cost to acquire them (CAC). Hitting break-even is an inflection point in a subscription app’s growth journey, marking the shift from investment to profit on a per-user basis.
B
Bundle ID
A unique identifier assigned to an app by its developer, used primarily in iOS/macOS ecosystems. The bundle ID ensures proper linking between app store listings, analytics platforms, and third-party services like push notifications, attribution, and entitlement management.
C
Cancellation
The act of ending a subscription, either by the user or automatically due to billing failure. Understanding cancellation timing and reasons is key for designing retention strategies, deflection flows, and win-back campaigns.
C
Cancellation survey
A short feedback form presented during the cancellation process to understand why a user is choosing to leave. These insights inform product improvements, pricing strategy, and targeted win-back efforts.
C
Churn rate
The percentage of subscribers who cancel or do not renew their subscription over a given time period. Churn can be voluntary or involuntary and is a core metric for measuring retention health and forecasting revenue growth.
C
Click-through rate (CTR)
The ratio of users who click on a specific call-to-action (e.g., email link, push notification, paywall button) versus those who viewed it. CTR is a key engagement metric for evaluating creative performance and funnel effectiveness. Click-through-rate originated in the email and banner ad world, where everything was on a desktop. With mobile, some companies now call this same metric tap-through-rate since people are tapping on their phone vs clicking on desktop, but at the end of the day it's really the same type of measurement.
C
Cohort analysis
A method of analyzing user behavior by grouping users based on shared characteristics — most often the date they first installed or subscribed. This allows teams to compare retention, LTV, and monetization trends across cohorts over time.
C
Content gating
The practice of limiting access to premium content — such as videos, lessons, or tools — behind a subscription paywall. Content can be fully locked (hard paywall) or partially accessible (soft paywall) depending on the monetization strategy.
C
Contextual Data
Real-time user data (e.g., device type, behavior, location, time of day) used to personalize messaging, pricing, or feature access. Contextual targeting helps improve conversion and engagement by tailoring the experience to the moment.
C
Conversion rate
The percentage of users who complete a desired action, such as starting a trial, subscribing, or upgrading. Common funnel examples include install → trial, trial → paid, or view paywall → subscribe. Conversion rate is a critical KPI for acquisition and monetization performance.
C
Customer acquisition cost (CAC)
The average cost to acquire a new customer or subscriber, typically calculated by dividing total acquisition spend by the number of new users acquired. Keeping CAC lower than LTV is essential for profitable growth.
C
Customer lifetime
The total time a user remains subscribed before churning. Often used in combination with revenue data to calculate lifetime value (LTV), and forecast future earnings per subscriber.
C
Customer relationship management (CRM)
The systems and strategies used to manage interactions with users across their lifecycle — including onboarding, engagement, upsell, and retention. Tools like Braze, Customer.io, and Iterable are commonly used to deliver personalized, event-driven messaging.
D
Data privacy
The set of policies and regulations that govern how user data is collected, stored, and used. For subscription apps, compliance with standards like GDPR, CCPA, and Apple’s App Tracking Transparency (ATT) is essential, particularly when dealing with personal, behavioral, or payment data.
D
Deep links
Links that direct users to specific in-app locations rather than simply opening the app. When combined with attribution and deferred deep linking, they enable seamless experiences across channels and platforms — valuable for re-engagement, referrals, and onboarding.
D
Deferred deep linking
A technique that routes users to a specific screen or piece of content in the app after installation — often used for campaigns, referrals, or personalized onboarding. It enables seamless user flows from ad click to in-app action, even when the app isn't already installed.
D
Discount code
A promotional code that offers users a reduced subscription price, often used during onboarding, seasonal campaigns, or win-back efforts. Codes can drive urgency, personalize offers, or reward referrals.
D
Downsell
Offering a lower-priced plan or reduced feature set to users who show signs of canceling or resisting a premium offer. Downselling helps preserve revenue and reduce full churn by keeping users subscribed at a lower commitment level.
D
Drop-off rate
The percentage of users who abandon a process before completing it — such as leaving onboarding, exiting at the paywall, or quitting checkout. Drop-off analysis helps identify friction points and optimize the user journey for higher conversion.
D
Dunning
A lifecycle system for managing failed payments. Dunning flows often include retries, reminders, grace periods, and in-app nudges — all aimed at recovering revenue and minimizing involuntary churn from billing issues.
D
Dynamic paywall
A paywall that adapts based on user behavior, engagement level, or user segment. Dynamic paywalls are used to tailor messaging, pricing, or feature framing — typically to improve conversion rates and reduce friction at the moment of intent.
D
Dynamic pricing
A pricing model where subscription prices are adjusted in real time based on variables like user location, engagement behavior, platform, or purchase intent. It’s often used to align perceived value with user segments and improve global conversion rates.
E
Eligibility criteria
The rules — often enforced by Apple or Google — that determine whether a user qualifies for specific offers such as introductory pricing or free trials. These are typically based on the user’s subscription history within a subscription group or platform account.
E
Email capture
The process of collecting a user’s email address during or before account creation. Email capture enables lifecycle communication across channels like onboarding emails, upgrade prompts, and win-back campaigns — and is particularly important when a user does not convert immediately.
E
Engagement rate
A metric that measures how frequently and deeply users interact with your app over time — including actions like sessions, feature use, and content consumption. Higher engagement is typically correlated with improved retention, trial conversion, and LTV.
E
Entitlements
The specific features, content, or access levels a user is granted based on their subscription status. Entitlements are typically managed through server-side systems like StoreKit, or Botsi, and are essential for maintaining access across platforms and devices.
E
Events (analytics)
Trackable in-app user actions such as app open, paywall view, subscription start, cancellation, or feature use. Events are the building blocks of behavioral analytics and are helpful for measuring funnel performance, targeting lifecycle messaging, and powering experimentation.
E
Experimentation framework
The systems and methodologies used to run A/B or multivariate tests on key subscription elements — such as pricing, onboarding, messaging, and paywalls. A strong experimentation framework supports continuous optimization of conversion and retention through rigorous data collection and analysis.
F
Family sharing
An Apple feature that allows a single subscription to be shared with up to five additional family members, reducing acquisition friction and increasing perceived value. Apps must opt in to support this and often adapt entitlement logic accordingly.
F
Feature gating
Restricting certain features behind a paywall or subscription tier. Gated features serve as upgrade drivers and help communicate the value of paid access. This is a common tactic in both freemium and trial-based models.
F
First-party data
Data collected directly from users by your app — such as behavior, preferences, and purchase history — rather than through third-party platforms. First-party data is more accurate, privacy-compliant, and essential for personalized messaging and retention strategies.
F
Free trial
A time-limited offer (e.g., 7 or 14 days) that grants users access to premium features at no cost. Trials are used to build trust, increase perceived value, and reduce barriers to subscription. Managing trial-to-paid conversion is a key monetization lever.
F
Freemium
A monetization model where the core app experience is free, but advanced features, content, or tools require a paid subscription. Freemium strategies allow broad top-of-funnel reach while monetizing the most engaged and high-intent users.
F
Funnel analysis
The process of tracking user behavior through defined conversion stages — such as install → trial → paid → renewal. Funnel analysis helps identify where users drop off and where to optimize onboarding, pricing, or messaging to improve performance.
G
Gamification
Incorporating game-like elements—such as points, streaks, badges, or level progress—into the app experience to increase user motivation, engagement, and long-term retention. Gamification is often used to reinforce daily habits or reward subscription milestones.
G
Google App Campaigns (GAC)
A Google Ads campaign type that automatically promotes your app across Google Search, Play Store, YouTube, and the Display Network. GAC uses machine learning to optimize ad placements and creative variations for installs, in-app actions, or subscription conversions.
G
Google Play Billing Library
Google's official framework for handling in-app purchases and subscriptions on Android devices. It provides APIs for managing trials, renewals, grace periods, and refunds, and is required for processing payments through Google Play.
G
Grace period
A limited time window following a failed renewal attempt during which a subscriber retains premium access while payment retries occur. Grace periods help reduce involuntary churn and provide a softer billing experience for users with temporary payment issues.
G
Gross revenue
The total subscription income earned before deducting app store platform fees, refunds, or taxes. Gross revenue provides a top-line view of monetization performance and is often contrasted with net revenue for financial analysis.
G
Growth loop
A compounding system where actions from existing users (like referrals, content sharing, or community engagement) lead to new user acquisition, which in turn fuels more engagement and further growth. Growth loops are more sustainable than linear acquisition models and often enhance LTV over time.
H
Hard activations
A metric that tracks users who complete a specific high-value action that strongly correlates with long-term retention or monetization such as starting a trial, subscribing, or completing onboarding. Unlike soft engagement signals, hard activations typically reflect clear product-market fit at the user level.
H
Hard paywall
A monetization model where core app features or content are fully locked behind a subscription and users must pay to proceed. Hard paywalls are effective for apps with clear, high-value offerings and are often paired with a free trial to mitigate upfront friction.
H
High-intent users
Users who demonstrate strong signals of purchase readiness, such as frequent sessions, return visits, or multiple paywall views. These users are prime targets for personalized offers, upsells, and onboarding nudges to drive subscription conversion.
H
Hook model
A behavioral design framework that explains how products create habits by cycling users through four stages: Trigger, Action, Reward, Investment. In subscription apps, the hook model is often used to design daily engagement loops that drive retention and deepen value perception. This was popularized by Nir Eyal.
H
Hybrid monetization
A strategy that combines multiple revenue streams such as subscriptions, in-app purchases (IAPs), and advertising. Hybrid monetization allows apps to capture value from both paying and non-paying users, optimizing ARPU across segments.
I
In-app message (IAM)
A native message displayed within the app interface (e.g., banners, modals, full screens) used to guide user actions - such as starting a trial, updating payment info, or exploring premium content. IAMs complement push notifications for mid-session engagement.
I
In-app purchase
A transaction made within the app to unlock content, features, or virtual goods. For subscription apps, IAPs can be used for one-time purchases alongside recurring plans, and must comply with Apple and Google's platform rules for digital goods.
I
Install attribution
The process of determining which marketing source or campaign drove an app install. Accurate attribution is needed for measuring CAC, optimizing performance marketing, and analyzing subscriber LTV by channel.
I
Install-to-subscribe rate
The percentage of users who install the app and ultimately start a paid subscription. This is a key funnel metric for evaluating onboarding effectiveness, paywall performance, and the overall value proposition.
I
Intro offer eligibility
A user's status, tracked by the app store, that determines whether they qualify for introductory pricing. On iOS, eligibility is typically limited to one offer per subscription group per Apple ID, meaning churned users may not qualify again.
I
Introductory pricing
A discounted subscription offer available only to first-time subscribers for a limited time (e.g., $0.99 for the first month). It's used to lower entry barriers and increase trial-to-paid conversions, and is governed by platform-specific rules on eligibility.
I
Involuntary churn
When a subscription is canceled due to failed billing - often caused by expired credit cards, insufficient funds, or store payment issues - rather than a user's conscious choice. Involuntary churn is a silent but significant drag on MRR, making billing recovery tactics very valuable.
J
JSON Web Token (JWT)
A lightweight, secure data format used to transmit verified information between systems - often employed to authenticate subscription status between a user's device, your backend, and third-party tools.
J
Job-to-be-done (JTBD)
A product development and positioning framework that focuses on the core "job" a user hires your app to accomplish - such as helping them sleep better, get fit, or manage tasks. JTBD is especially useful for defining value propositions, onboarding flows, and pricing models that resonate with target users.
J
Just-in-time paywall
A dynamic paywall strategy that displays the subscription prompt exactly when a user attempts to access premium content or features. This approach increases conversion by showing the paywall at a moment of high intent, when the value of the subscription is most clearly felt.
K
K-factor
A measure of virality that indicates how many additional users each existing user brings in — often through referral programs, content sharing, or word of mouth. A K-factor above 1.0 indicates exponential user growth without relying entirely on paid acquisition.
K
KPIs (Key Performance Indicators)
Core metrics used to evaluate app performance, especially across acquisition, conversion, and retention. For subscription apps, common KPIs include Monthly Recurring Revenue (MRR), churn rate, Lifetime Value (LTV), trial-to-paid conversion, and activation rate.
K
KYC (Know Your Customer)
A legal and compliance process used to verify the identity of users, often required in finance, healthcare, or education apps. For subscription businesses in regulated spaces, KYC ensures compliance while maintaining trust and access to premium services.
K
Keyword ranking
A metric that shows where your app appears in App Store or Google Play search results for specific keywords. Optimizing keyword rankings is a key part of App Store Optimization (ASO) and can drive organic installs with strong conversion potential.
L
LTV/CAC ratio
A key profitability metric that compares the average Lifetime Value of a user to the average Customer Acquisition Cost. A ratio of 3:1 is often cited as a healthy benchmark for sustainable growth and efficient marketing spend. But lifetime value is measured differs across apps and industries, so don't use this as a hard and fast rule
L
Lifecycle marketing
A messaging strategy that targets users at key moments in their journey - from onboarding and trial to renewal and reactivation. Channels like email, push notifications, and in-app messages are orchestrated around behavioral triggers to drive higher conversion and retention.
L
Lifetime value (LTV)
The total revenue a user is expected to generate over the entire duration of their relationship with your app. LTV is a foundational metric for forecasting revenue, setting CAC targets, and evaluating the long-term impact of product or pricing decisions.
L
Localization
The process of adapting your app's content, pricing, messaging, and visuals for different languages, regions, or cultural norms. Effective localization improves global conversion rates, user trust, and long-term retention in international markets.
L
Lock screen engagement
User interactions that originate from lock screen surfaces - such as notifications, widgets, or Live Activities - without launching the full app. These lightweight touchpoints help boost engagement, reinforce habits, and improve retention with minimal friction.
L
Long-term retention
The percentage of users who remain active and/or subscribed after extended periods (e.g., day 30, day 90, or day 180). Particularly important for subscription apps with annual plans or freemium models where monetization happens later in the user lifecycle.
M
MAU (Monthly Active Users)
The number of unique users who engage with the app at least once in a 30-day period. MAU is a top-level engagement metric and often serves as the denominator in conversion rate or retention analysis.
M
MAU/DAU ratio
A metric that measures how often users return to the app by comparing Daily Active Users (DAU) to Monthly Active Users (MAU). A higher ratio (closer to 1.0) indicates stronger user stickiness and habitual usage. The usage patterns of your users will change based on the category and type of app. For example, social media and gaming apps expect a much higher MAU/DAU ratio. Apps that only make sense to use once a week or a few times a month shouldn't measure themselves the same as a game.
M
Merchant of record
The party legally responsible for processing payments, managing refunds, and handling tax compliance on behalf of the app. In most mobile apps, Apple or Google act as the merchant of record, while web-based apps often use Paddle, or similar providers.
M
Mobile Measurement Partner (MMP)
A third-party tool - like Appsflyer, Branch, or Adjust - that attributes installs, measures campaign performance, and tracks in-app behavior across paid and organic channels. MMPs can be helpful for understanding CAC, LTV, and ROI in a privacy-compliant manner.
M
Monthly recurring revenue (MRR)
The predictable revenue generated from active subscribers on a monthly basis. MRR is a key metric for assessing growth, financial health, and the impact of marketing or retention initiatives in subscription-based apps.
M
Multi-platform
Describes apps or services that support user access and subscription syncing across multiple operating systems (e.g., iOS, Android, web). Multi-platform support improves user flexibility, increases perceived value, and helps reduce churn.
M
Multivariate testing
An advanced testing method where multiple variants (such as pricing, layout, and messaging) are tested simultaneously to identify the most effective combination. Multivariate testing is useful when optimizing complex paywalls, onboarding flows, or value propositions. Multi-variate testing usually makes more sense for larger apps since they have more data and can run these tests over a reasonable time frame. If you are smaller, typically starting with A/B testing with only two variants, or a control, and a new variant will lead to more reliable results.
N
Name your price
A pricing strategy where users choose what they're willing to pay for a subscription. Less common, but it can be useful for donation-based products, early-access launches, or communities where trust and transparency are core values.
N
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a measure used to understand customer satisfaction and loyalty for an app. It’s based on one simple question: “How likely are you to recommend our app to a friend or colleague?” Users rate this on a scale from 0 to 10. Scores of 9-10 are ‘Promoters’ who love your app, 7-8 are ‘Passives’ who are satisfied but not enthusiastic, and 0-6 are ‘Detractors’ who are unhappy. A high NPS indicates strong customer satisfaction and is often linked to growth and positive word-of-mouth, while a low NPS can signal potential issues and customer churn.
N
Net churn
The number of subscribers lost over a given period, adjusted for reactivations. Net churn provides a more complete view of subscription momentum than gross churn and is especially useful for understanding long-term revenue health.
N
Net revenue
Total income from subscriptions after subtracting platform fees, refunds, taxes, and other deductions. Net revenue offers a more accurate picture of actual profit compared to gross revenue and is needed for forecasting and LTV modeling.
N
Non-renewing subscription
A subscription that ends after a set period without auto-renew.
N
Notification fatigue
When users become overwhelmed or desensitized by excessive push or in-app messages, leading to disengagement, opt-outs, or churn. Managing frequency, personalization, and value of notifications is important to maintain user trust.
N
Notifications (push/in-app)
Messages delivered to users either outside the app (push) or during app sessions (in-app). These are key channels for driving re-engagement, promoting renewals, upselling, and nudging users toward key lifecycle milestones like trial start or upgrade.
N
Nudges
Subtle, behaviorally timed messages that encourage users to take action like, "Your trial ends tomorrow" or, "Unlock more with Premium." Nudges are effective at reducing drop-off and increasing conversion when placed at friction points or high-intent moments.
O
Offer code
A promotional code that unlocks a discounted price or special access to a subscription. Offer codes are often used in partner campaigns, user gifting, influencer marketing, or churn recovery workflows.
O
Offerwall
A monetization and engagement tool that presents users with offers (e.g., free trial extensions, discounts) in exchange for actions like watching an ad, completing a survey, or sharing the app. Common in freemium or hybrid monetization models.
O
Offline access
A premium feature that allows users to use the app or consume content without an internet connection. Often used in fitness, language learning, or media apps to justify subscription value and reduce churn during travel or commuting.
O
Onboarding flow
The structured experience that guides new users through their first interactions with the app - often including feature highlights, value reinforcement, and paywall exposure. A well-optimized onboarding flow will improve activation, trial starts, and long-term retention.
O
One-time purchase (OTP)
A monetization model where users pay once for permanent access to a specific feature, product, or piece of content. OTPs can complement subscriptions for users who prefer à la carte value over recurring payments.
O
Opt-in rate
The percentage of users who consent to receiving marketing communications, push notifications, or tracking (such as ATT on iOS). High opt-in rates are crucial for effective lifecycle messaging and campaign attribution.
O
Over-the-top (OTT)
Apps that deliver streaming content (e.g., video, audio, live classes) directly to users over the internet, bypassing traditional cable or satellite providers. Examples include Netflix, Peloton, and Headspace. Separately, OTT ad networks are becoming increasingly viable for user acquisition channels.
O
Owned media
Marketing channels that your brand fully controls, such as push notifications, in-app messaging, email, or SMS. Owned media allows for direct, cost-effective user engagement throughout the customer lifecycle.
P
Payback period
How long does it take for you to "payback" the money you've spent on acquiring a new user. A faster payback period is better because it means that you can reinvest that money into growing faster. Typically, a faster payback period means faster growth. At the same time, depending on your business you can use a longer payback period to give you the freedom to acquire users at a higher price. If you're only bidding based on a 1 month payback period, the amount you're able to spend per user will change greatly versus a 1 year payback period. This will be influenced by your free cash flow, desire to grow profitability, and maturity of your business.
P
Paymium
A hybrid pricing model where users pay both an upfront fee to download the app and an ongoing subscription for continued access or premium features. While less common today, it can work for high-value niches where initial access alone delivers perceived value.
P
Paywall
A screen that restricts access to content or features until the user subscribes or starts a trial. Paywalls are critical for monetization and can be static (same for all users) or dynamic (personalized based on behavior or segment).
P
Paywall A/B testing
Running controlled experiments that test variations of the paywall - including copy, design, pricing, or feature messaging - to find the highest-converting version. This is a high-leverage area for increasing monetization without changing the product itself.
P
Perceived value
A user's subjective assessment of how much value they are receiving relative to what they're being asked to pay. It's often influenced by onboarding, feature exposure, social proof, and overall app design and directly impacts conversion and retention.
P
Personalization
The practice of customizing app content, messaging, or pricing based on user data like as behavior, preferences, or device type. Personalization can significantly boost trial conversion, engagement, and retention by making the experience feel more relevant.
P
Platform fees
The percentage of each transaction taken by Apple or Google when a user makes a purchase through in-app billing. For iOS, fees are typically 30% for the first year, dropping to 15% for renewals or under small business programs. Google has a standard 15% fee.
P
Promotional eligibility
A user's platform-defined status that determines whether they qualify for a specific offer, like an introductory price or free trial. On iOS, eligibility is typically tied to the user's Apple ID and subscription group history.
P
Promotional offer
A time-limited discount or special deal designed to incentivize action, such as subscribing, reactivating, or upgrading. Promotions are often used during onboarding, churn risk moments, or seasonal campaigns.
P
Purchase funnel
The progression users follow from install to paid subscriber. Common steps include onboarding ‚Üí paywall view ‚Üí trial ‚Üí paid conversion. Funnel drop-off analysis helps teams identify friction and opportunities to improve monetization.
Q
Qualitative feedback
Non-quantitative insights gathered from sources like user reviews, cancellation surveys, support tickets, and NPS responses. While not always statistically representative, qualitative feedback is essential for understanding the "why" behind user behavior. These could take the form of cancellation reasons, perceived value gaps, or feature requests.
Q
Quick action triggers
UI elements that allow users to take immediate, high-value actions - like subscribing, upgrading, or reactivating - with minimal effort. Examples include 3D Touch shortcuts, contextual buttons, and one-tap upsells. These reduce friction and capitalize on moments of intent.
R
RFM analysis
A segmentation framework that scores users based on how recently they were active, how frequently they use the app, and how much they've spent. RFM helps identify power users, churn risks, and upgrade candidates for more targeted messaging.
R
Rate limiting
A backend mechanism that limits how often users can trigger certain subscription-related actions (e.g., restore, trial start, promo redemptions) within a set time frame. This helps prevent abuse, fraud, and system overload.
R
Reactivation
When a previously churned or lapsed subscriber returns and resumes their subscription. Reactivations are a part of lifecycle marketing and often driven by email/push campaigns, pricing incentives, or product improvements.
R
Recurring revenue
Revenue generated on a consistent, repeatable basis through subscription renewals. Recurring revenue is the foundation of subscription businesses and a key metric for forecasting, valuation, and capital efficiency.
R
Refund rate
The percentage of in-app purchases or subscriptions that are refunded due to user dissatisfaction or platform policy. High refund rates can signal poor value perception, billing issues, or onboarding problems and may impact platform standing or reported revenue.
R
Renewal
The continuation of a subscription after a billing period ends, either manually or through auto-renew. Renewals are a core component of recurring revenue and serve as key milestones in a user's lifecycle.
R
Renewal rate
The percentage of subscribers who successfully renew at the end of their billing cycle. High renewal rates are indicative of strong product-market fit, perceived value, and customer satisfaction.
R
Restore purchases
A feature required by Apple and Google that allows users to reclaim previous subscriptions or one-time purchases, especially after reinstalling the app or switching devices. It helps ensure continuity and trust for users who change phones or reset accounts.
R
Retention curve
A visual graph that shows how many users (or subscribers) remain active or subscribed over time, typically shown by cohort. Retention curves help identify whether engagement or monetization is front-loaded or sustained and are essential for understanding long-term performance.
R
Retention rate
The percentage of users who remain engaged with the app or continue their subscription over a specific period. High retention leads to higher LTV and reduced reliance on constant acquisition.
R
Revenue recognition
The accounting process of recognizing subscription revenue incrementally over the duration of service delivery, rather than all at once. Important for subscription models to match earnings with usage and remain GAAP-compliant.
R
RoAS
Return on Ad Spend - This is usually measured as a percentage or ratio. For example, you may have 120% return on ad spend or 3x return on ad spend depending on the time period you're looking at. It's measured by taking how much you spent on acquiring a new user compared to the revenue that user generated. You generally want to measure this by acquisition channel or by time period. But usually both.
S
Sandbox environment
A development and testing environment provided by Apple or Google that simulates subscription flows without using real money. It's used to QA paywalls, trial logic, entitlement management, and billing error handling.
S
Segment
A defined subset of your user base, grouped by shared characteristics like geography, behavior, subscription status, or device type. Segmentation is essential for targeted messaging, pricing strategies, and paywall experiments.
S
Server-to-server notifications
Real-time updates sent from app stores (Apple or Google) to your backend systems when subscription events occur. These could be renewals, cancellations, refunds, or billing issues. These are for maintaining accurate entitlements and powering real-time lifecycle messaging.
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Session tracking
The measurement of user sessions - including frequency, length, and recency of visits. Session data informs engagement metrics, triggers re-engagement campaigns, and identifies power users or at-risk churn cohorts.
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Soft paywall
A monetization model where users are given limited access to premium features or content before being asked to subscribe. This try-before-you-buy approach helps build trust and improve conversion by demonstrating value early.
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Software development kit (SDK)
A set of tools, libraries, and documentation that developers use to integrate specific functionality into their apps, such as subscription management (e.g., StoreKit, Botsi SDK), analytics, or attribution.
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Stickyness
A metric that reflects how frequently users return to the app, typically measured using the DAU/MAU ratio. High stickiness suggests strong engagement habits, and it's a leading indicator of retention and long-term subscription health.
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Subscriber lifecycle
The full journey of a subscriber from acquisition and activation through retention, renewal, downgrade, or churn. Mapping this lifecycle is key to designing effective lifecycle marketing, feature gating, and upsell strategies.
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Subscription
A monetization model where users pay a recurring fee (monthly, annually, etc.) for access to content or features. Subscriptions offer predictable revenue and are often structured with trials, tiers, or loyalty discounts to drive adoption and retention.
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Subscription group
A set of mutually exclusive subscription plans on iOS. Users can only subscribe to one at a time within the group. Managing groups properly is crucial for controlling trial eligibility and enabling plan upgrades or downgrades.
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Third-party billing
Payment processing handled outside of Apple or Google's in-app purchase systems. Commonly via payment platforms like Stripe, Paddle, or PayPal. Often used for web subscriptions or Android apps distributed outside the Play Store, allowing greater pricing control and lower platform fees.
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Time-based offers
Promotions with a clear expiration (e.g "48-hour offer") designed to create urgency and drive faster decision-making. These are often delivered through paywalls, lifecycle campaigns, or triggered messaging tied to in-app behavior.
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Time-to-first-purchase
The amount of time between a user installing the app and starting their first subscription. A key metric for measuring the effectiveness of onboarding, paywall timing, and perceived value delivery.
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Tracking consent
A user's decision to allow or deny tracking (e.g., through Apple's App Tracking Transparency prompt). Consent status affects how well apps can attribute installs, personalize messaging, and optimize acquisition across marketing channels.
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Trial conversion rate
The percentage of users who begin a free trial and subsequently convert to a paid subscription. This is one of the most important metrics for subscription apps with trials, reflecting onboarding success, feature adoption, and value communication.
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Trial drop-off
Users who begin a trial but do not convert to a paid plan. These users represent a valuable segment for win-back campaigns, exit surveys, or follow-up offers aimed at understanding and closing conversion gaps.
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Trial eligibility
Determined by app store policy, this defines whether a user qualifies for a trial - typically limited to one trial per subscription group per Apple ID. Eligibility status influences paywall messaging, pricing presentation, and reactivation strategies.
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Trial extension
An additional trial period granted to a user - either manually or through an automated trigger - typically used to re-engage users who didn't activate or convert during the initial trial. Trial extensions can boost conversion by giving hesitant users more time with premium features.
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Trial period
A limited timeframe during which users can access premium content or features for free. Typical trial durations range from 3 to 30 days. Trial design (length, gating, timing) directly impacts conversion and perceived value.
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Trialing
The state of a user who is currently in their free trial window. These users are high-intent and should be actively engaged with onboarding content, feature exposure, and lifecycle messaging to increase the chance of conversion.
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Triggered messaging
Automated communications (via email, push, or in-app) triggered by specific user actions or lifecycle milestones - such as, "Your trial ends tomorrow" or, "Welcome back!" These messages play a vital role in conversion, re-engagement, and reducing churn.
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Uninstall rate
The percentage of users who delete your app after installation, often within the first 24-72 hours, but can be longer-term as well. High uninstall rates typically signal onboarding friction, weak value delivery, or misleading acquisition messaging.
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Universal App Campaigns (UAC)
A Google Ads campaign type that promotes your app across Google Search, the Play Store, YouTube, and the Display Network using machine learning. UACs optimize automatically for installs or in-app actions like trial starts or subscriptions based on real-time performance data.
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Unsubscribe flow
The in-app or store-level experience a user goes through when canceling their subscription. A well-designed unsubscribe flow can reduce churn by offering pause options, downgrade plans, or highlighting underused value. Poor unsubscribe UX may lead to frustration and negative reviews.
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Upsell
A tactic that encourages users to move to a higher-tier subscription plan or unlock additional features. Upsells can be timed based on user behavior (e.g., usage limits, feature interactions) and are most effective when they clearly communicate added value.
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Usage analytics
Data collected on how users interact with the app - including features used, frequency, depth of engagement, and time spent. Usage analytics inform feature prioritization, upsell timing, onboarding flows, and lifecycle messaging strategies.
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Usage-based pricing
A pricing model where users pay based on how much they use a resource, such as credits, minutes, or API calls. While rare in consumer subscription apps, it's increasingly common in B2B, AI tools, and marketplaces where usage varies significantly by user.
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User ID
A unique identifier assigned to each user in your backend or analytics system, used to track behavior, purchases, and engagement across sessions or devices. A consistent user ID is essential for accurate LTV calculation, cohort analysis, and CRM targeting.
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User acquisition (UA)
The combination of paid and organic strategies used to drive new installs. This includes channels like Facebook Ads, Apple Search Ads, referrals, influencer campaigns, and App Store Optimization (ASO). UA performance is typically measured by metrics like CAC, ROAS, and trial conversion rate.
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Value proposition
The core promise of benefit that explains why a user should subscribe. A strong value proposition is consistently reinforced across onboarding, paywalls, and messaging, connecting to user needs to premium features.
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Van Westendorp analysis
A pricing research method that helps determine optimal pricing by asking users at what price a product feels too cheap, too expensive, and just right. It's commonly used to evaluate subscription pricing sensitivity and willingness to pay.
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View-through attribution
A form of ad attribution that credits conversions to an ad that was viewed (but not clicked) prior to the app install. It's particularly relevant for channels like YouTube, OTT, or display, where ad exposure influences user decisions indirectly.
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Virality
The organic growth that occurs when users bring in other users through referrals, content sharing, or social features. Measured by metrics like the K-factor, virality helps reduce CAC and amplify the impact of lifecycle loops.
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Voluntary churn
When a user intentionally cancels their subscription. Typically, due to cost sensitivity, unmet expectations, or perceived lack of value. Differentiated from involuntary churn, which occurs due to failed payments or technical issues.
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Web subscription
A subscription purchased through a website (commonly using Stripe or Paddle) instead of in-app purchase systems. Web subscriptions allow apps to avoid platform fees and offer more flexible pricing or promotional options.
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Web-to-app conversion
The process of converting users from a web page, landing experience, or email into app installers, and eventually subscribers. Optimizing this flow requires deep linking, continuity of messaging, and frictionless onboarding.
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Webhook
An automated, real-time message sent from a system (e.g., Stripe, Botsi) to your backend when a subscription event occurs, such as a renewal, cancellation, or trial start. Webhooks enable immediate updates to user status and CRM sync.
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Weekly active users (WAU)
The number of unique users who engage with the app within a 7-day period. WAU is a useful middle-ground metric between DAU and MAU, and is often tied to user health scoring and retention tracking.
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Welcome flow
The onboarding sequence shown to new users, often guiding them through feature highlights, value communication, and eventually a paywall or trial prompt. A strong welcome flow increases trial starts and early retention.
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White-label app
An app developed once but branded and resold by multiple companies or partners. Common in fitness, education, or wellness categories where the core functionality is the same, but the front-end branding and messaging differ.
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Widget engagement
User interactions with app widgets (e.g., iOS home screen widgets), which can boost visibility, reactivation, and habitual use. Particularly helpful for apps with real-time data, check-ins, or daily routines.
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Willingness to pay (WTP)
The price a user is willing to pay for your product or subscription, often surfaced through pricing surveys or inferred through conversion behavior. WTP is an input for price testing, packaging, and geographic pricing strategies.
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Win-back campaign
A targeted effort to re-engage and convert churned users, often using personalized messaging, time-sensitive discounts, or new feature announcements. Win-backs are a high-ROI strategy when paired with behavioral segmentation.
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Xcode
Apple's integrated development environment (IDE) used to build iOS apps. Xcode is where subscription logic, paywall presentation, StoreKit integration, and entitlement management are coded and tested.
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Yearly subscription
A subscription billing model where users pay annually instead of monthly. Often offered at a discount (e.g., 30% off) to increase LTV, reduce churn, and simplify retention forecasting.
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YouTube App Campaigns
Video-based app install campaigns run through Google's Universal App Campaigns (UAC). YouTube is often a high-volume, mid-funnel channel for driving installs and retargeting with branded creatives.
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Zero-day churn
Users who uninstall the app or cancel their trial/subscription within the first 24 hours. Often caused by a mismatch between ad messaging and in-app experience, poor onboarding, or aggressive paywalls.
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Zero-party data
Data intentionally and proactively shared by the user (e.g., via onboarding quizzes, surveys, or settings). Unlike inferred data, zero-party data is highly reliable and ideal for powering personalized paywalls and pricing.