FAQs
>> Won't this cannibalize my subscriber base?
>> How does this drive conversion exactly?
>> What do I set my prices at?
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Won't this cannibalize my subscriber base?
It’s all in the design:
First, StreemPay is designed to be low risk to roll out.
Limit which readers are offered StreemPay by targeting particular audiences with unique URL extensions that trigger the StreemPay payment option.
This allows you to start small and over time, as you collect data, expand the cohorts of readers receiving the StreemPay option.
Eventually, you can open up StreemPay to everyone once you have the data to show that adopting StreemPay outweighs any remaining cannibalization risk.
Second, StreemPay allows you to set a payment cap.
By setting the payment cap above your subscription rate and by pricing your articles appropriately, you encourage existing subscribers to keep their subscriptions.
This has the added benefit of building a pipeline of casual readers who become highly qualified leads for conversion.
A note on the quality of the subscriber base:
When looking at retention risks, it is important to look at the quality of the subscriber base.
High-quality subscribers are less likely to churn because they feel they get value for money.
Low-quality subscribers (sleepers, infrequent readers) are more likely to churn for the opposite reason, they feel like they don’t get value for money.
One advantage of StreemPay is that you can catch churned readers and give them an alternative way to continue paying for and enjoying your content.
Another advantage is that StreemPay can help replace high-risk subs with high-quality subs by targeting high-spending casual readers to convert to a subscription.
This can significantly reduce the latent strategic risk in your subscriber base that low-quality readers could start to churn more quickly and reduce revenue.