Monetization

Promotional Offer

Also known asWin-Back OfferRetention Offer

A discount Apple or Google lets you grant to existing or former subscribers — eligible to users who have already redeemed an intro offer on the product.

Key takeaways

  1. 01Promotional offers target RETURNING users; intro offers target NEW users — different APIs, different eligibility rules.
  2. 02Three typical use cases: winback (re-engage cancelled subscribers), retention (save churning ones), reward (long-term subscribers).
  3. 03Surfaced by your app, validated server-side by Apple / Google — they can't leak publicly the way generic discount codes can.
  4. 04Overuse trains users to wait for discounts and erodes baseline subscription price integrity — segment tightly.

Where introductory offers target new subscribers, promotional offers target returning ones — users who have already redeemed an intro offer and are no longer eligible for one. They're a distinct API on both iOS and Google Play: your app programmatically presents a promotional offer to an eligible user, the platform validates eligibility server-side, and the discount applies on the next subscription period.

Three typical use cases

  1. Winback — re-engage cancelled subscribers, typically 30-60 days post-cancellation, with a discount like "3 months at 50% off if you come back". Highest acceptance rates when targeted at users who churned in the first paid period (price-sensitivity-driven churn) rather than long-tenure ones.
  2. Retention — save subscribers about to cancel. Surfaced in the cancel flow itself, before the user confirms. "Stay another month for $0" or "Get 50% off your next 3 months". Higher conversion than winback because the user is still engaged.
  3. Reward — recognize long-tenure subscribers with periodic discounts or upgrades. Loyalty-driven, less price-elastic.

Offer codes are a related mechanism. Codes you distribute outside the app (email, influencer partnership, customer-support refund alternative) redeem a specific promotional offer when entered in the App Store or in-app. Useful for: manual customer-service recovery, podcast / influencer deals (1,000 codes for a partner to distribute), specific apology / make-good scenarios. Each code can only be redeemed once.

The discipline that matters: don't train users to wait for discounts. If every cancellation flow shows a 50% retention offer, sophisticated users learn that cancellation is the way to get a lower price. Segment retention offers tightly — only show to users in their N-th consecutive at-risk month, or to users with specific churn-risk-model scores. Same for winback: target by initial-churn-month, not blanket-all-cancellers.

Quick answers

What is the difference between a promotional offer and an introductory offer?

**Introductory** offers target NEW subscribers (no prior subscription history with the product). **Promotional** offers target RETURNING subscribers (users who already redeemed an intro offer, or who are currently subscribed). They use different APIs on both iOS and Google Play, with different eligibility validation. Use intro for acquisition trials; use promotional for winback / retention / loyalty.

When should I show a retention promotional offer?

In the cancel flow, before the user confirms cancellation. Apple's StoreKit and Google Play Billing both expose APIs to surface a promotional offer at that moment. Best practice: don't show retention offers to first-time cancellers in their first paid period (those users are usually post-trial price-sensitive — discount won't recover them long-term); target users in their N-th consecutive at-risk month or users with high churn-risk-model scores.

What are offer codes?

Offer codes are codes you distribute outside the app — email, podcast / influencer partnership, customer-service refund alternative — that redeem a specific promotional offer when entered. Each code can only be used once, and Apple / Google validate eligibility server-side. Useful for manual retention cases, influencer deals (1,000 codes for a podcast host), and apology / make-good scenarios where you don't want to issue a refund.

Does Apple charge commission on promotional offers?

Yes — commission applies to the discounted price the user actually pays. If your standard price is $10 / month at 30% commission, a 50% promotional offer means the user pays $5 / month and you net $3.50. The "loyalty rate" 15% commission after year one of continuous subscription still applies based on continuous subscription tenure, not on whether the user is paying full price or a discounted rate.

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