Product Sense Pushups: Subscription Decisions—Paywall and Upgrade Flows

Spotify

Spotify uses user pain as a nudge by presenting ads, limited skips, and no offline usage then gives users an option to upgrade with one tap. It recently let free users pick specific songs for a limited window to further convince them to upgrade. Premium removes the pain by offering unlimited skips and downloads and adds perks, such as audiobooks, which boost retention and lifetime value. The risk is that this strategy adds too much friction and causes users to move to other platforms. A potential fix could be to show a daily tracker of on-demand usage and offer small Premium trials.

 

Figma

Figma gives a free plan to single users but caps collaboration. As teams collaborate, they get paid access, unlocking admin, libraries, and Dev Mode, growing lifetime value as more roles join. The risk is that caps can stall sharing before value is clear, and a fix could be to give guest passes for editing and automatic trials for roles when activity increases.

 

NYTimes

The NYTimes uses a paywall to push subscriptions and then lifts lifetime value with bundles, such as News, Games, Cooking, Wirecutter, and The Athletic, and Family plans. The risk is timing because if the paywall appears too soon, casual readers leave, but if it appears too late, they never subscribe. The fix is to set smarter limits by letting popular articles spread wider and rewarding readers who keep reading with bonuses for streaks.

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