SoundCloud Launches Student Offer to Drive Conversions

According to our consumer survey, 91% of students said a gated offer would make them more likely to shop with a brand. Gated offers also influence purchasing behavior, motivating nearly three in five consumers to purchase sooner. This makes sense, as gated offers spur emotional connection: when provided a gated offer, 54% of consumers report feeling rewarded, 47% feel excited, and 35% feel special.

Setting the Stage for Long-term Subscribers

To ensure only those eligible for the student discount are able to redeem it, SoundCloud implemented the gated offer with SheerID’s Digital Verification Platform. Students attending an accredited college or university full-time can simply enter a few pieces of information, including email and school, and their status is instantly verified. Even students who are already subscribers can take advantage of the gated offer.

Verified students receive the discount for 12 months, at which point SoundCloud invites them to reverify their status (if they’re still a student) or convert to full price.

The secure verification process prevents fraudulent redemptions, which can be as high as 35%. It also occurs as a seamless part of the transaction and gives SoundCloud the opportunity to nurture students’ use of the platform so they happily become full-paying subscribers when they graduate.

The Power of Nurturing Student Subscribers

SoundCloud’s launch of the student offer generated significant buzz. Top media outlets like TechCrunch, The Verge, and Digital Music News recognized the company for meeting student demand. And Digital Trends confirmed launching the offer was a smart move, saying it was “a good way to bring new paying customers into the fold, and the demographic is a perfect fit for SoundCloud’s artists.”

The strategy gives SoundCloud access to a lucrative segment, a whopping 180 million college and university students around the world who have $574 billion in spending power in the US alone.

SoundCloud makes it clear that these students are integral to the platform, and using gated offers taps into their desire to be part of a growing and vibrant community. This includes messages like “Flex Your Student Status” and a promise to students that by upgrading their subscription, they’re directly supporting the millions of creators building their careers on SoundCloud. That’s a call to action that’s easy to get behind: what student wouldn’t want to be a part of shaping the future of the music industry?

Expanding the Customer Acquisition Impact of Gated Offers

SoundCloud’s gated offer is available to students in the US, UK, Ireland, Australia, New Zealand, Canada, Germany, France, and the Netherlands. Since SoundCloud is available in 190 countries, Digital Music News projects that “there’s a lot of room for growth if the program proves successful.”

An integral part of the internet-era music industry, SoundCloud continues to innovate. And as SoundCloud evolves, so can its gated offer program. SheerID’s international student verification is available in 108 countries—and counting.

How Gated Offers Benefit Top Subscription Brands

Driving conversions and loyalty with gated offers isn’t limited to the student segment. Within a year of launching a gated military offer tied to the MyLowe’s loyalty program, Lowe’s enrolled millions of veterans and saw a 2x increase in repeat purchases among the military.

Brands in the subscription economy are also on board with gated offers:

• To acquire new subscribers, Comcast offers a student deal for 25% off Xfinity TV bundled with an internet package.
• CBS All Access is fighting churn—one of the biggest obstacles subscription companies face—with a gated offer of 25% off for college students.
• Kettlebell Kitchen differentiates its meal subscription services with a 15% discount for members of the military and first responders.
• Headspace makes its meditation app more accessible by providing year-long subscriptions to students for $9.99, and to teachers for just $12.