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How do freemium apps that use in-app monetization actually benefit from push notifications?
3
min read
October 11, 2023

How do freemium apps that use in-app monetization actually benefit from push notifications?

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Freemium apps, which offer a free version with limited features and a premium version with additional benefits, can benefit greatly from well-tailored push notification nudges. These nudges can help convert free users into paying customers by providing personalized and timely offers, updates, and reminders.

In this article, we will explore how freemium apps that use in-app monetization can leverage push notifications to drive conversions, with examples from Netflix and other leading freemium companies.

The Power of Push Notifications in Freemium Apps

Freemium apps rely on a large user base to drive revenue, with a small percentage of users upgrading to the premium version.

Push notifications can play a crucial role in this conversion process by:

  • Engaging Users: Push notifications can be used to deliver personalized content, such as new features, updates, or relevant recommendations, to keep users engaged with the app. This engagement can increase the likelihood of users upgrading to the premium version.
  • Offering Limited-Time Promotions: By offering time-limited promotions or discounts on the premium version, freemium apps can create a sense of urgency and incentivize users to upgrade. Push notifications are an effective way to deliver these offers directly to users' devices.
  • Providing Social Proof: Social proof, such as positive reviews or testimonials from existing premium users, can be a powerful motivator for free users to upgrade Push notifications can be used to share this social proof with free users, highlighting the benefits of the premium version and increasing their desire to upgrade.

Freemium Apps Using Push Notifications to Drive Conversions

Netflix

Netflix, the popular streaming service, offers a free trial period to new users, allowing them to experience the platform's features before deciding to subscribe

During this trial period, Netflix uses push notifications to:

  • Recommend Content: Netflix sends personalized push notifications to free trial users, suggesting movies and TV shows based on their viewing history and preferences. These recommendations help users discover the value of the platform and increase their likelihood of subscribing.
  • Highlight Exclusive Content: Netflix also uses push notifications to promote its exclusive content, such as original series and movies. By showcasing this unique content, Netflix creates a sense of FOMO (Fear Of Missing Out) among free trial users, encouraging them to upgrade to the premium version to access these exclusive titles.

Spotify

Spotify, the popular music streaming app, offers a free version with ads and limited features, as well as a premium version with ad-free listening and additional benefits. To convert free users into paying customers, Spotify uses push notifications to:

  • Offer Limited-Time Promotions: Spotify occasionally offers time-limited promotions, such as discounted premium subscriptions or free trials of the premium version, to its free users. These offers are delivered via push notifications, creating a sense of urgency and incentivizing users to upgrade.
  • Deliver Personalized Playlists: Spotify sends push notifications to free users, suggesting personalized playlists based on their listening history and preferences. By showcasing the benefits of the premium version, such as unlimited skips and the ability to download music for offline listening, these personalized playlists encourage free users to upgrade.

Evernote

Evernote, the popular note-taking app, offers a free version with limited storage and features, as well as a premium version with additional benefits, such as offline access and advanced search capabilities. To convert free users into paying customers, Evernote uses push notifications to:

  • Remind Users of the Benefits of the Premium Version: Evernote sends push notifications to free users, reminding them of the benefits they would gain by upgrading to the premium version, such as increased storage and the ability to access their notes offline. These reminders help free users see the value in upgrading and increase their likelihood of converting.
  • Offer Limited-Time Promotions: Similar to other freemium apps, Evernote occasionally offers time-limited promotions or discounts on the premium version to its free users. These offers are delivered via push notifications, creating a sense of urgency and incentivizing users to upgrade.