Free apps have forced many competitors to offer free downloads too. So how do you keep generating revenue when 'paid download' is no longer an ideal option?
What purpose does your mobile app solution serve? If you are looking to generate revenue through the app’s download price, you may need to look for alternative solutions. A report by the popular research firm Gartner found that by the end of this year, 93% of all mobile apps are expected to be free on the major platforms.
The reason is simple: in a chain reaction effect, free apps have forced their competitors to also offer free downloads to users. The challenge, of course, will be to keep generating revenue when ‘paid download’ is no longer an option. Fortunately, if you know how, you can adjust to keep your mobile outreach strategy on pace to success.
One portion of app publishers are moving toward freemium models, which means that the download is free – but a complete user experience within the app isn’t. This is the app version of a free trial: you get limited functionality for free, designed to push you toward unlocking the entire app for a price.
A freemium model increases initial downloads, but may negatively impact your user engagement and active user rates. Deciding on free vs. freemium should be a core decision when building your app, as it can affect every portion of the development process.
A similar option to keeping a steady revenue stream while developing your app is to offer in-app purchases. Selling upgraded features and other perks through your app allows you to bring in profits directly from app users. In-app purchases can range from ‘swag’ and loyalty points all the way to more thorough search and functionality capabilities. In-app purchases aren’t ideal for every mobile app solution but for some, it’s an extremely effective way to generate revenue and provide additional value to users in the app.
If the main goal of your app is to raise awareness of your brand, you will accomplish little by requiring funds just to download it. Your audience, after all, consists of members of your target audience who have heard little about you, and will not be willing to spend cash on an unknown entity.
Still, you can turn your app into a revenue generator. The key is simple: provide enough interesting content that your users will be encouraged to learn more. Then, guide them to your website’s conversion pages that allow them to satisfy their need for more. An app built for this type of awareness needs to have calls to action and links built into it dynamically from the start.
Ultimately, any type of app has the potential to be an immense success for your business. The trend toward free apps may be worrisome to brands who have relied on app revenue coming from downloads, but there are plenty of other options to impact your bottom line through your app. Knowing what these options are is your first step toward keeping your business successful.
In fact, the most successful app solutions cannot be separated based on price. Their deciding differences lay in how they’re built, and how they accomplish the specific goals that you have set for them. Do they communicate your unique value proposition, and do they encourage your audience to convert to customers? As long as the answer is yes, you have a good foundation.
Then, the next step is to build an app that accomplishes your specific and measurable goals. A solution that serves as your e-commerce outlet will need to built very differently than one that simply seeks to raise awareness through a brand-related game. Knowing what you need is crucial, as is finding a development company that can help you reach your goals. Contact us to learn more about what we can do to help your mobile app solution succeed.