Upsell

A downsell is a monetization strategy where a user who has declined an initial offer is presented with a lower-priced or reduced-scope alternative to capture revenue that would otherwise be lost entirely. In the context of mobile subscription apps, downselling commonly occurs on paywalls or web checkout pages: if a user dismisses the primary annual subscription offer, they might immediately see a follow-up screen offering a monthly plan at a lower commitment, a discounted trial period, or a feature-limited tier at a reduced price. The psychology behind downselling is that the user has already demonstrated interest by engaging with the offer flow — they simply weren't convinced at the original price point. By presenting a more accessible entry point, the app captures a subscriber who would have otherwise churned at the paywall. Downsells are particularly effective in web funnel environments where the developer controls the entire purchase flow and can dynamically serve different offers based on user behavior. When combined with upselling and cross-selling strategies, downsells form a comprehensive price discrimination framework that maximizes conversion across different willingness-to-pay segments.

Cross-selling in the mobile app context refers to the practice of promoting complementary products, features, or subscription tiers to an existing user who has already made a purchase or is subscribed to a plan. Unlike upselling, which encourages upgrading to a higher-priced version of the same product, cross-selling introduces adjacent offerings that add value alongside what the user already has. For example, a fitness app might cross-sell a meal planning add-on to a user subscribed to a workout program, or a language learning app might promote a business vocabulary module to a user enrolled in conversational courses. Cross-selling is particularly effective on web-based checkout pages and post-purchase confirmation screens, where users are already in a buying mindset. When implemented well, cross-selling increases average revenue per user (ARPU) without requiring new user acquisition, making it one of the most efficient revenue growth levers for subscription apps. The key is relevance — the offered product must feel like a natural extension of what the user already values, rather than an unrelated pitch.

Mobile app paywall optimization refers to the process of fine-tuning the design and user experience of an app's paywall to maximize revenue from paid subscriptions or in-app purchases. This involves analyzing user behavior and identifying the most effective paywall placement, messaging, pricing, and incentives.

Net Revenue Retention (NRR), also called Net Dollar Retention (NDR), measures the percentage of recurring revenue retained from existing customers over a given period, including the effects of upgrades, downgrades, and churn. An NRR of 100% means the business retains all of its existing revenue; above 100% means expansion from existing users exceeds losses from churn and downgrades. For subscription apps, NRR is a powerful indicator of product-market fit and monetization health. An app with 110% NRR is growing its revenue base by 10% from existing users alone, before any new customer acquisition — a strong signal that users find increasing value over time. NRR above 100% is often driven by users upgrading to higher-priced plans, purchasing add-ons, or re-subscribing after a lapse. Conversely, NRR below 100% indicates that the business must continuously acquire new subscribers just to maintain its current revenue level, putting pressure on user acquisition efficiency. Top-performing subscription businesses typically achieve NRR of 110–130%, and investors consider this metric one of the strongest predictors of long-term sustainable growth.

ARPU stands for Average Revenue per User, and it refers to the average amount of revenue an app generates from each active user. App growth teams that develop subscription or revenue-driven apps often include ARPU as a key performance indicator to measure their financial success. By calculating ARPU, you can determine the average amount of money you earn from each user. While ARPU takes into account the revenue earned from both paying and non-paying users, there is another similar metric used specifically for subscription-based apps. This metric is known as ARPPU (Average Revenue per Paying User), which only considers the revenue generated by users who have made a payment.