Podcast Subscriptions Onboarding

providing a more guided approach to onboarding

After the launch of the podcast subscriptions MVP, we decided to dedicate a quarter to optimizing the onboarding experience in order to help demystify the process of launching a podcast subscription. Using quantitative and qualitative learnings, we discovered that there was much opportunity to improve upon the existing onboarding process for subscriptions, which consisted of a few ephemeral modals that gave little to no guidance on what creators should be doing. Creators looked to Spotify for Podcasters to be their guide when they were ready to monetize and as one of the first products available to unlock, the lack of guidance set the tone for what to expect with our more premium monetization models, leading creators to abandon on-platform monetization entirely.

Timeline

Jan 2023 - March 2023

Our Monetization offerings and our users

We had 5 different types of monetization available to our creators: Listener Support, Paid Subscriptions, Ambassador Ads, Automated Ads, and Premium Sponsorships. As a creator scaled their listenership, they would gain access to some of our more premium ad offerings.

For many creators, an ad-based monetization model is not very appealing (or is not sufficient on its own). This is particularly true for smaller, independent podcasters with highly engaged audiences, who feel that including ads is not the right option for their listener-base. These podcasters would prefer, and benefit more from, a fan-based model. The options available today in the podcast industry for this model are very high friction, for both creators and consumers. We had the opportunity to build a simpler solution, in a way that benefits both creators and consumers, while starting to build the foundation for Spotify becoming the leading marketplace for podcasters.

The MVP Experience

The MVP experience that was launched consisted of 3 steps:

1. Setting up your Stripe account in order to receive payments

   • This setup process occurred on Stripe’s surface and was not controlled by us. The onboarding process for Stripe consisted of 6 steps and required users to input tax information, personal details like name address and social security number, and bank information. The sensitive nature of these steps took a lot of creators by surprise.

2. Setting a price for your subscription

   • This step lived on Spotify for Podcasters (or as it was known then, Anchor) in a modal.

3. Selecting episodes to paywall

   • This step also lived in a modal and required users to select at least one episode to paywall in order to complete the activation of podcast subscriptions. This step needed to be completed within this flow otherwise the user would have to start over at step 2 in order for subscriptions to be activated.

The problem

The onboarding completion rate for Spotify for Podcasters' Podcast Subscriptions product was low at 18%, with the primary dropoff occurring during the "invisible step" of Stripe onboarding, where creators had to input sensitive information. Stripe reported that only 54% of Spotify for Podcasters creators completed this step. User research revealed that creators were confused about monetization on Spotify for Podcasters and lacked clarity on the differences between monetization products. Our team ran an experiment that showed a 7.2% improvement in onboarding success by linking a product education video within the Podcast Subscriptions module on the Money page, suggesting a need for enhanced product education.

Creators were also unclear about how their subscription appeared on Spotify and struggled to promote it effectively. Only 24.3% of creators had added their Subscribe link to their podcast show description, a critical space for visibility. Even among subscriber-driving creators, only 64.6% included the Subscribe link in their show description. Additionally, confusion existed regarding the description of subscription benefits, with common themes like bonus content and ad-free content not consistently communicated across podcasts on the Spotify consumer app. The "Message to subscribers" field on Spotify for Podcasters' subscribe form was underutilized, and some creators opted to provide a brief subscription pitch in their show description

What we knew

• The creator onboarding success rate for Podcast Subscriptions was 18%

• Stripe onboarding is a particularly difficult hurdle across all Spotify for Podcaster monetization onboarding flows (54% completion rate, via Stripe)

• Adding a link to a product educational video in the podcast subscriptions module on the Money page resulted in a 7% lift in creator onboarding success

• Creators wer confused about how to most effectively describe and promote their subscription offering

Assumptions

We operated under the following assumptions:

• Creators are more likely to complete onboarding if they understand the product better

• Creators are more likely to complete onboarding if they are asked to complete easy steps first

• Creators are more likely to complete onboarding if they understand their progress toward completion

• Creators can earn money faster by communicating the value proposition of their subscription to consumers more clearly

• Creators are more likely to stick with the product if we give them the tools they need to manage and promote it

Hypothesis

1. Creators don’t monetize through Podcast Subscriptions because they don’t understand how it works or what they can expect to earn from the product.

2. The onboarding success rate is low for Podcast Subscriptions because early setup steps are high friction and creators don’t know what to expect.

3. Creator churn is high for Podcast Subscriptions because creators don’t have the tools they need to succeed with the product.

Solution

Improve the Podcast Subscriptions CTA (unactivated state):

• Utilize product education to set expectations for onboarding and success with the product

Optimize the onboarding experience for creators by:

• Re-ordering the onboarding steps (move highest friction steps to the end)

• Showing the creator their onboarding progress

Streamline the Podcast Subscriptions active state for creators by:

• Setting creators up for success by templatizing promotions for their subscription offering in the product

• Presenting creators with recommendations for how to promote their subscription offering

• Giving creators clear and easy-to-use tools to manage their subscriptions

What We Built

Taking into account all of the information we learned from research, I revamped the onboarding process in order to provide a more guided experience. We did away with the ephemeral nature of the modal format and decided to create a full-screen experience to make the process feel a bit more hefty. This also gave us additional room to expand upon different areas that we wanted to highlight.

• Select Hosting: We recognized that quite a few creators had existing business models on other platforms like Supporting Cast and Patreon. It was important for us to offer creators a way to keep their hard work while offering catalog completion on Spotify. Subscribers from shows made available via Spotify Open Access were more likely to spend money on Spotify Premium

• Perks: We added a new step to give creators an idea of all of the perks they could offer as part of their subscription. These perk selections would later be used as additional descriptors on the consumer app

• Additional Guidance: After hearing from creators that they wished for a more guided experience, we included more cues from Spotify to help Creators feel like we were making suggestions that were tailored to them.