External Purchase Conversion Metrics
Turns out, in-app purchases are good for conversion rates. In fact, at least 30% better. That’s one of the things we found while running the first large-scale, side-by-side test of in-app vs web purchases in history.
[…]
The initial conversion rate for variant B is between 27% and 30%, while the equivalent web flow in variant D is between 17% and 19%. This is a large decrease, a 25% to 45% relative drop between the two. Digging into the funnel, most of that drop occurs from the payment sheet through to purchase. That’s a lot of fall off.
I do not find the difference surprising—especially since this is all so new. It can get better from here. I wonder how many of the customers had Apple Pay set up and how many used it.
Reduced fees aren’t the only benefit of web purchases; they usually have more tools to retain and serve these users. Payment processors like Stripe pay out much more quickly than IAP, reducing cashflow constraints.
And better handling for refunds.
You can make this up by offering a discount, we tested this too but don't have anything conclusive to say about that test yet.
It’s almost like Apple never needed these draconian rules all along and could have just competed on the merits 🤔
They’re still not competing on the merits because they don’t allow implementing alternative in-app payments.
Previously:
- Apple Appeals Epic Anti-Steering Injunction
- Free With In-App Purchase Is a Sham
- App Review Guidelines Updated for Epic Anti-Steering
- Court Orders Apple to Comply With Anti-Steering Injunction
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I don't find it surprising that apple can provide an easier payment solution on iOS and therefor convert better.
Does Mobile Safaris store user details like name, address and payment info?
Another factor they seem to have skipped is how much money each transaction results in after fees.
