How to Make Money With In-App Purchases
How to Make Money With In-App Purchases
Now that you've designed a great mobile app, it's time to think about monetization. These strategies offer different ways to ensure a source of revenue.
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As the mobile scene expands, it's essential for brands to develop smart strategies for monetizing their mobile presence. While some organizations opt for paid downloads, others rely on in-app advertising as their only source of revenue. Still, many brands decide to develop their app monetization strategy around in-app purchases which enable users to access special features and premium content.
If that's your strategy, too, here are five tips to help you boost your revenue from in-app purchases and deliver a fantastic experience to the users of your app.
1. Collect and Analyze Data
Your first step to increasing in-app sales is understanding what your audience needs and wants. You can do that by gathering and analyzing user data.
Consider the steps which lead to a purchase and track user behavior with the buying cycle in mind. When a consumer makes a purchase, you'll know what steps lead them to this decision. This, in turn, will serve as your model for a successful customer journey.
Using this data, you'll be able to increase revenue in the right places, and detect where you might be losing potential sales.
2. Personalize Your Outreach
While some customers are used to in-app purchases, others will need a nudge to make their very first purchase. Offering a promotion or discount as an incentive is a good way to start.
Still, you can get even better results if you correlate your incentive with the customer's interests and browsing behavior. This is where you may find collecting and analyzing app data very useful. Knowing key facts about user demographics and behavior patterns allows you to develop campaigns that target individual customers and deliver a personalized experience.
Customizing your outreach is a step toward making your campaigns more relevant and valuable to consumers. That's how you can increase your conversions and motivate customers to spend money in your app.
3. Focus on Building a Meaningful Relationship
Remember that in-app purchases happen thanks to user engagement. Consumers who are engaged with your app know what they can gain through in-app purchases and how it will boost their experience.
Use your marketing channels to ensure that consumers use your app on a regular basis. It's also a way to collect more data on user behavior, helping you to tweak your campaigns in a way that makes them even more effective.
Focus on developing a customer experience that builds a meaningful, long-term relationship with your brand. That's how you convince users to return to your app and make more purchases.
4. Follow Up on Your Customers
Sometimes users might start a purchase without bringing it to a close. This is, in fact, very common, but brands still fail to consider it as a fantastic opportunity for following up. 86% of brands never follow up on such customers, and that's a huge mistake. Sending customized follow-ups, you can use your messaging channels to motivate users to finish their purchase.
Reaching out to customers who seriously considered making a purchase, you'll also gain insight into their interests by analyzing the content of their abandoned cart. This way, your future promotional outreach will be much more effective.
5. Change Your Pricing
Take a closer look at the purchasing options in your app. You can check them on iTunes Connect or Google Play's developer console.
What's the price of your top purchase? Bring the price of your second most popular purchase closer to the top one, and you'll soon see a rise toward your number one purchase.
This is just one of the many pricing strategies used in business beyond mobile. It's a good idea to play with price levels in your app to check how much profit you could be making.
Published at DZone with permission of Katarzyna Lorenc , DZone MVB. See the original article here.
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