How to Build a MarTech Stack for Subscription Apps
In today's competitive mobile app market, creating a scalable and efficient MarTech stack is no longer a luxury - it's a necessity. Mobile app founders, indie developers, and monetization managers need to think strategically about how to optimize their growth and revenue. But where do you start, especially if you're transitioning from a free app to a subscription model?
This article unpacks critical lessons from a conversation between Jacob Shore, a veteran in mobile marketing growth, and Jacob Rushman, CEO of Botsy. Together, they explored how subscription apps can build a powerful MarTech infrastructure that drives results. Whether you're new to the industry or a seasoned professional, these insights will help you rethink your approach to tools, automation, and global optimization.
Why Building the Right MarTech Stack Matters
When transitioning a mobile app from a free product to a monetized model, having the right tools in place is essential. Without proper infrastructure, you risk missing key growth opportunities and losing out on valuable insights. Jacob Shore’s experience at Mappy, a hiking and biking app with 4–5 million monthly active users, highlights the importance of starting with the basics and scaling thoughtfully.
Here’s how Mappy approached this transformation, along with actionable recommendations for your own app.
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Step 1: Start with the Core Tools
To build a strong foundation, every subscription app needs three core components:
1. Mobile Measurement Partner (MMP)
An MMP tracks your app’s attribution and user acquisition (UA) efforts. Without this, it’s nearly impossible to measure the value of your marketing campaigns.
Why It's Critical: Attribution becomes increasingly complex as your user base grows and privacy regulations evolve.
How to Choose: Select an MMP that’s widely recognized in the industry for its reliability. Shore recommends prioritizing industry-standard tools to ensure scalability and comparability. Tools like AppsFlyer and Adjust are strong options, especially if you’re looking for robust integration with advertising platforms.
2. Product Analytics
Understanding user behavior is critical for optimizing your app. However, many apps rely on in-house analytics systems, which may not provide the flexibility and scalability needed.
Shore’s Advice: Consider tools like Amplitude or Mixpanel for product analytics. These platforms allow you to analyze user behavior at a granular level, enabling data-driven decisions.
A Cost-Saving Tip: If you’re working with a freemium model, limit analytics to top-priority markets to reduce costs. For example, only enable analytics SDKs for regions with the most active or profitable users.
3. Revenue Infrastructure
When Mappy transitioned to monetization, it initially relied on a basic homemade system. But as the company’s needs grew, Shore recognized the importance of investing in scalable revenue infrastructure.
Why It’s Necessary: Revenue tools help you manage subscriptions, IAPs (in-app purchases), and pricing tiers. They also simplify compliance with app store requirements.
What to Prioritize: Choose tools that allow flexible pricing experiments and global currency adjustments to maximize revenue across regions.
Step 2: Layer in Advanced Tools as You Scale
Once you’ve implemented the essentials, you can add tools that enhance user engagement and long-term retention.
1. Lifecycle Marketing Tools
Lifecycle marketing tools enable you to engage users at every stage of their journey - from onboarding to retention.
Onboarding Matters: For apps like Mappy, onboarding is crucial to understanding user intent. By asking users about their preferences (e.g., hiking, biking, or navigation), you can tailor their experience from the start.
In-App Messaging: Shore emphasized the importance of in-app messaging for driving engagement. Tools like OneSignal offer cost-effective solutions for building personalized, event-driven messages.
Email and Push Notifications: While these tactics are valuable, Shore suggests prioritizing in-app communication for early-stage apps.
2. A/B Testing and Surveys
Understanding user preferences is vital, especially if your app serves diverse audiences.
Surveys: Conduct simple surveys (e.g., via in-app messaging) to identify which features users value most.
A/B Testing: Test different UI elements, paywall designs, and feature placements to determine what drives conversions.
3. Localization at Scale
If you’re expanding globally, localization is non-negotiable.
Automate Translations: Shore shared a clever hack using Figma plugins to automate the localization of app store screenshots for multiple languages. Tools like CopyDoc streamline this process, saving time for designers and developers.
Contextual Upsells: Apps like Strava excel at integrating dynamic upsell messages throughout their products. This approach can help you drive adoption of premium features in specific regions.
Step 3: Optimize for Monetization Through Experimentation
One of the most challenging aspects of monetizing a free app is determining the right pricing strategy.
1. Start with a Soft Approach
When Mappy introduced its first subscription ($10 annually), the goal wasn’t maximum revenue - it was user acceptance. By starting with a low price point, the team could gauge how users responded to the paywall.
2. Experiment with Paywall Design
Shore is a strong advocate for increasing the percentage of users who see a paywall. Apps should aim for a launch-to-paywall impression rate of 90% or higher.
Why It Works: Showing your paywall early and often allows you to collect data on what resonates with users.
Pro Tip: Use A/B testing to refine your messaging and design. For example, test contextual paywalls that appear when users attempt to access premium features.
3. Use Data to Refine Pricing
Once you’ve collected enough data, you can experiment with pricing tiers and regional adjustments. Emerging markets, in particular, may require tailored pricing to maximize adoption.
Common Challenges in MarTech and How to Overcome Them
1. Build vs. Buy Decisions
Jacob’s Stance: "Buy where you don’t differentiate; build only where it adds value."
Why It Matters: Building in-house tools is often time-intensive and requires specialized expertise. Invest in third-party tools for standardized metrics to align with industry practices.
2. Cutting Through the Noise
With countless MarTech solutions available, it’s easy to get overwhelmed.
Shore’s Rule of Thumb: Look for pricing transparency and clear product descriptions. If a tool requires a convoluted sales process, it may not be the right fit.
Pro Tip: Check documentation and user guides to understand the tool’s actual capabilities beyond marketing claims.
3. Balancing Qualitative and Quantitative Insights
While surveys offer valuable qualitative data, Shore emphasized the importance of quantitative metrics to guide decisions. For instance, track user behavior to identify features that genuinely drive retention and revenue.
Key Takeaways
Start with Core Tools: An MMP, product analytics, and revenue infrastructure form the foundation of any strong MarTech stack for subscription apps.
Prioritize Scalability: Choose tools that can grow alongside your user base and allow for cross-platform consistency.
Leverage In-App Messaging: In-app messaging can significantly improve onboarding, highlight premium features, and validate product roadmaps.
Optimize the Paywall: Aim to show paywalls to 90% of users. Test different designs and placements to maximize conversions.
Automate Localization: Use tools like Figma plugins to scale global translations efficiently.
Experiment with Pricing: Start with a conservative price point, then use data to fine-tune your tiers and regional strategies.
Build vs. Buy: Focus on buying tools for standardized functions and building only where you want to differentiate.
Cut Through the Noise: Use LinkedIn to follow industry experts, and dive into tools’ documentation to understand their true capabilities.
Conclusion
Building the perfect MarTech stack for subscription apps requires a balance of foundational tools, strategic experimentation, and a willingness to adapt. As Jacob Shore’s experience at Mappy illustrates, success comes from asking the right questions, gathering actionable insights, and choosing the tools that best align with your goals.
By following these principles, you can transform your app into a global success and navigate the complexities of monetization with confidence. Remember, it’s not about having the most tools - it’s about using the right ones effectively.
