The growth of Headway

Yeva discusses her experience at Headway, witnessing the company's growth from an early-stage startup to a team of 170 people. She also introduces Nibble, Headway's new product that offers short, interactive lessons on various topics. Nibble complements Headway's book summary app, focusing more on knowledge acquisition.

Web and in-app subscriptions: a dual approach

Yeva explains how Headway offers subscriptions through both web and in-app channels. This decision was driven by the need to diversify revenue streams and audiences, as well as adapt to the challenges posed by iOS 14.5 privacy updates. By embracing web subscriptions, Headway not only boosts revenue but also captures a different demographic of users, including older individuals who find web purchases more convenient.

Web subscriptions: challenges and opportunities

Yeva also shares the unique dynamics of web subscriptions. While the web flow requires users to input card details and undergo longer, more sales-oriented funnels, it also fosters a higher level of commitment from subscribers. Web subscribers exhibit higher retention rates, rebill more frequently, and are easier to re-engage. Web subscribers tend to differ in demographics and content preferences, offering an untapped audience segment for Headway.

Behavioral differences: web vs. in-app subscribers

Yeva highlights notable differences in user behavior between web and in-app subscribers. Web users show a higher inclination towards taking tests, indicating a preference for interactive content. The lengthier funnels in web flows cater to the need for increased persuasion and instill confidence in the product. Although Headway designs the product to cater to all users, tailored funnels and offers optimize the experience based on the user's acquisition source.

Lifetime value (LTV) and revenue impact

The source of acquisition significantly influences the lifetime value (LTV) of subscribers. Web subscriptions generally have a much higher LTV compared to in-app subscriptions due to several factors: web subscriptions avoid app store commissions, allowing for higher revenue retention; web subscribers exhibit higher rebill rates, attributed to their deeper commitment to the subscription; and non-trial payment plans perform well on the web, as users perceive the card entry process to be similar regardless of the plan type.

The introduction of web subscriptions by Headway has proven to be a successful revenue diversification strategy, attracting a distinct audience segment and offering a higher LTV compared to in-app subscriptions. By understanding the behavioral differences and optimizing the user experience based on the acquisition source, Headway has achieved substantial growth and expanded its reach in the competitive subscription app market.

More about Yeva

Yeva Koldovska is a Product Manager at Headway, a company specializing in subscription-based services. With her expertise in product management, Yeva plays a crucial role in overseeing the development and enhancement of Headway's subscription offerings. She brings a wealth of knowledge and experience to the table, enabling her to effectively identify and address the needs of Headway's diverse user base.

Episode 28 sneak peek

• On the interactive growth of Headway: "It took a lot of work and testing and trying different approaches, different audiences, user acquisition channels, different ways to scale. It wasn't an explosive growth at one moment. It was very iterative, and I'm glad that we've achieved this result."
• On the web purchase experience: "Since the payment is processed on the website, the user needs to input their card details even for a free trial. This nuance creates a very significant difference because the level of commitment required from the user to input their card details is much higher on the web than in the app."
• On acquisition diversification: "These users tend to be a bit older, usually, and we wanted to capture that audience as well. We saw one of the growth streams for us there."
• On conversion: "On the web, the users need to be really convinced that your product is worth paying for. As a result, the conversion rate to purchase on web funnels is generally much lower than within the app."