Overview

A popular app faced challenges in acquiring users for its monthly and yearly subscription plans while maintaining a customer acquisition cost (CAC) that ensured profitability. Their primary goal was to get a user to either sign up for a free trial then convert to a yearly subscription, or immediately sign up for a monthly plan. The client aimed to increase user acquisition for both subscription types, each with distinct lifetime value (LTV) profiles, and sought FeedMob’s help in reducing CAC while scaling growth.

Approach

FeedMob developed a tailored strategy by first understanding the client’s CAC targets for both monthly and yearly subscribers. The team took a portfolio approach, optimizing media buys based on subscription type, using different acquisition channels for each. Key tactics included:

Incent Partner Strategy

Incent partners played a pivotal role in driving long-term success for this client. FeedMob used incent media partners, offering differentiated rewards: a higher reward for freemium (trial to annual) subscribers and a lower reward for monthly subscriptions. This allowed the team to balance cost and LTV, with more expensive inventory allocated to higher LTV users.

Custom Optimization Tools

FeedMob developed a unique product enhancement for this campaign, allowing different payout values for purchase events based on whether the user subscribed to a monthly or yearly plan. This helped manage partner costs and improved overall campaign efficiency.

Detailed Media Planning

A comprehensive media plan with varying CPA levels ensured FeedMob met the client’s need for fast growth without sacrificing profitability.

Results

FeedMob’s ability to differentiate payouts based on subscription type helped scale the acquisition while maintaining profitability across both customer segments. Due to the cost efficiencies in incent media vs. other higher competition channels, we were able to lower CAC targets for both customer types significantly. This allowed us to have a higher payout for channels with more expensive inventory but higher customer LTV.

Overall, FeedMob was able to achieve the client CAC goals for both yearly and monthly acquisitions. Year-over-year we saw 186% increase in monthly customer acquisitions, and a 54% reduction in overall CAC. FeedMob’s strategic portfolio approach, combined with advanced optimization tools, delivered significant growth and cost savings, positioning IP Vanish for long-term success.

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