P

What is Promotional offer?

Definition, examples, and more

Definition

A time-limited discount or special deal designed to incentivize action, such as subscribing, reactivating, or upgrading. Promotions are often used during onboarding, churn risk moments, or seasonal campaigns.

How to Calculate

Promo Revenue = Redeemed x Promo Price x Duration + (Redeemed x Full-Price Renewal Rate x Full Price x Remaining Months).

Example

A language app targets 30-day churned users: '50% off for 3 months — pick up where you left off.' 12% accept, and 65% continue at full price after the promo period. Each quarterly campaign recovers 400-600 subscribers at $2 effective CPA.

Why Promotional offer Matters

Promotional offers are the most effective win-back tool. Users already know your product — they just need a nudge. A meditation app's quarterly win-back promos recovered subscribers at $2 CPA vs $12-15 for new acquisition. Churn became a renewable revenue source.

Frequently Asked Questions

What promo types work best?

Win-back: 40-50% off for 1-3 months. Upgrades: 30% off annual for monthly subscribers. Retention: free month for at-risk users. Time-limited (48-72 hours) boosts redemption 30-50%.

How do Apple promotional offers work?

Configured in App Store Connect with signature-based verification. The user sees discounted pricing in the purchase dialog. Botsi handles signature generation automatically.

How do I avoid training users to wait for discounts?

Limit promos to specific segments (churned, at-risk) rather than running public sales. Use personalized, one-time offers that feel exclusive. Never discount for users about to pay full price.

Category
Subscription App Terminology
Related Area
Mobile App Growth & Monetization

More terms starting with “P

Payback period

How long does it take for you to "payback" the money you've spent on acquiring a new user. A faster payback period is better because it means that you can reinvest that money into growing faster. Typically, a faster payback period means faster growth. At the same time, depending on your business you can use a longer payback period to give you the freedom to acquire users at a higher price. If you're only bidding based on a 1 month payback period, the amount you're able to spend per user will change greatly versus a 1 year payback period. This will be influenced by your free cash flow, desire to grow profitability, and maturity of your business.

Paymium

A hybrid pricing model where users pay both an upfront fee to download the app and an ongoing subscription for continued access or premium features. While less common today, it can work for high-value niches where initial access alone delivers perceived value.

Paywall

A screen that restricts access to content or features until the user subscribes or starts a trial. Paywalls are critical for monetization and can be static (same for all users) or dynamic (personalized based on behavior or segment).

Paywall A/B testing

Running controlled experiments that test variations of the paywall - including copy, design, pricing, or feature messaging - to find the highest-converting version. This is a high-leverage area for increasing monetization without changing the product itself.

Perceived value

A user's subjective assessment of how much value they are receiving relative to what they're being asked to pay. It's often influenced by onboarding, feature exposure, social proof, and overall app design and directly impacts conversion and retention.

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