The prominence of being decisive with the right mobile app pricing strategy is what every business owner must prioritize to generate maximum profits. Determining the correct pricing for a mobile app seems like an easy-going task for a moment. But it’s trickier than finalizing the spot-on budget & timeline for mobile app development.
The majority of budding appreneurs & startups struggle to figure out the best-fit mobile app pricing strategy to drive a decent ROI from mobile apps for retail & other industries in no time. The purpose behind having a set of rock-solid strategies to price a digital product or a mobile app is not just meant for customer value but also for upscaling your business.
A future-proof pricing strategy plays a dominant role in achieving mobile app success. Small or big, every emerging entrepreneur is convinced to brainstorm a feasible plan to price a mobile app.
No doubt the success of your business app greatly depends on how precisely it has been priced to make money in the real world.
So, what’s the right approach to choose a profitable pricing strategy for mobile app development? Dig into this article to determine which pricing strategy to choose for your business.
Table of Contents
- Delve into customer behavior & preferences
- Know what’s trending in your market
- Research & analyze your competitors
- Build products that users desire to pay for
- Outline a full-proof marketing strategy
- Focus on cost-efficiency
- Keep a balance b/w product value & market demands
- Pick the right monetization model (Paid or Free?)
- Launch your mobile app at different prices
- Always keep the product value higher than the market price
- Make your app unique & competitive
Salient Factors To Shape The Right Mobile App Pricing Strategies
The necessity of getting familiar with the right mobile app pricing strategy takes a center-stage to bring productive outcomes from revenue-generating apps.
From a statistical point of view, 45% of online traffic comes from smartphones or mobile devices that significantly contributes to the rapidly surging mobile app market share.
While most startups & growing SMEs primarily focus on the quality of mobile app user persona, 30% of them eventually fail to survive. Not having a promising product pricing strategy appears to be a sensible reason that makes mobile app development investment profitless.
Hence, it’s requisite to get some detailed knowledge of the types of mobile pricing strategies before you start planning about how to make an app go viral. Do consider these factors to outline the most idealistic approach for pricing a mobile app whether you’re a new entrant or a well-established brand,
#1 Delve Into Customer Behavior & Preferences
The first rule of product pricing strategy underlines the purchasing psychology of targeted mobile app users. Besides raising concerns about how to develop enterprise mobility strategy, every business enthusiast must be clear if the app’s user segment is actually interested to pay for it or not.
After all, understanding user behavior is a very critical factor to decide which mobile app pricing strategy will drive the best results to benefit a business.
Maximum customers out there are already well-versed in making a perfect choice of product. In fact, they always tend to consider other alternatives before finalizing their purchase decision. So, what’s your strategy to influence your potential customers to spend on your app?
The straight answer is setting your app’s pricing from the perspective of user willingness to pay. Just like minimum viable product for startups are introduced at the initial phase, brand new mobile apps must be launched at comparatively lower price tags but with higher value.
By doing so, the potential customers will soon realize that there is no other alternative better than what your mobile app is providing. And this is how considering customers’ behavior & mindset help businesses in setting a mobile app pricing strategy that catches a bull’s eye!
# 2 Know What’s Trending In Your Market
A product is most likely to succeed if it emerges as a reasonable alternative or solution to the recurring problems users face. A guide to product roadmap defines the significance of building an app that people would like to use. It’s similar to having an app that further solves their issues or makes their lives easier for a good reason.
All these considerations would guide you about how to choose your pricing model for a mobile app. Don’t forget to keep a note of the UI/UX designs, features, performance, & other factors that can influence its journey for mobile app pricing strategy.
A deep understanding of current market technology trends in 2021 is equally important to add value to mobile app pricing.
#3 Research & Analyze Your Competitors
Despite doing thorough market research, most business strategists miss out on some vital insights that would be imperative to plan a money-making strategy to earn money by developing mobile app.
No business can ever accept a setback in the competitive horizons of digitization that arises due to inadequate competitor analysis. Indulging in market-centric research & analysis is a brilliant practice to identify loopholes in the marketing efforts to promote apps on apple app store or play store to compete in the industry.
Keeping eyes on what competitors are doing, how they’re positioning their products, & what’s their pricing policy is beneficial to evaluate your mobile app pricing strategy with pre and post app launch snags to avoid.
#4 Build Products That Users Desire To Pay For
If a user intends to pay on a mobile app without giving a second thought then it’s clear that its pricing strategy is correct.
Once you’re done with market research & competitor analysis, it becomes easier to test & collect feedback from the target audience.
In addition to this, an accurate mobile app pricing strategy shall not solely depend on research work. In fact, it must involve other sources of generating revenues that comes with the addition of new features & mobile app updates.
And that’s why most mobile app strategists are collaborating with Android & iOS app development teams to price their products for their clientele.
#5 Outline A Full-proof Marketing Strategy
For seasoned marketers, it’s no more a mystery to find how to increase app user engagement. But yes, it’s quite puzzling for present-day businesses to finalize their pricing beforehand.
It’s a matter of fact that both mobile app pricing strategy & marketing plans go hand in hand. And the target is retaining users for high return over investments. The plus point of indulging in pricing policy is long-term results with greater impact on promotional aspects of encouraging users to stay on your app.
#6 Focus On Cost-efficiency
The affordability of a product or service is a prime factor to consider while determining the right types of mobile pricing strategies for a business.
The cost-effectiveness matters a lot in case you’re planning to implement a penetration pricing strategy besides pricing models for mobile app development services. Hence, one must ensure to keep up the offer value nominal & fair as per the market standards.
It’s a classic strategy to attract new customers & make money at guaranteed conversion rates.
#7 Keep A Balance B/W Product Value & Market Demands
Be careful & sure before moving on with the same approach even if a strategy worked well for a business. For instance, not all app owners need tips to increase mobile app response rates when they’re lagging due to wrong interpretation of product value & market demands.
As similar to this scenario, it’s pretty clear to say that one mobile app pricing strategy won’t necessarily fit all. It’s better to ideate with your own approach to strategize for your revenue model. This will be helpful in determining the ever-changing demands of users looking forward to adapting trending app ideas for businesses.
#8 Pick The Right Monetization Model (Paid or Free?)
The crucial role of monetizing a product is the core element of mobile app pricing strategy. However, choosing the best-suited mobile app monetization model is still noted as rocket science.
Getting a clear picture of the differences b/w free, freemium, paid, & paidmium versions of a mobile app is the most important factor to decide the right cost of a product.
Important Tips To Select The Best Mobile App Pricing Strategy
Before entering the market with your own business app, one can count on the above-discussed mobile app pricing strategies.
But there are still some tricks every business must apply from our mobile app budgeting guide to rip you business expenses to stay on the safe side with the app pricing model. Have a quick look at these brilliant tips to define the right strategy to price an app:
#1 Launch Your Mobile App At Different Prices
While deciding the price of a product, businesses must entirely focus on the revenue model instead of revenue per price.
Try to test & launch your mobile app at a variety of prices as a part of your mobile app pricing strategy. Later on, wait for the response from potential customers to analyze their reaction or opinion regarding the app.
All these activities will serve you a lucrative opportunity to get funding for your app.
#2 Always Keep The Product Value Higher Than The Market Price
Think beyond evaluating product pricing in numbers. There is a lot more to do to fix the right mobile app pricing strategy with a team of developers & mobile app strategists to handle your project. Start with different levels of prices & go ahead with a clearly conveyed story to present them impactfully to the target audience.
Customers will be more than interested to pay a price greater than the perceived value once they start realizing the product’s value.
#3 Make Your App Unique & Competitive
Build what your users want, not what you expect to sell with your brand. The uniqueness & feasibility of your app idea is important for a mobile app pricing strategy. And the reason is that market is already flooded with millions of apps from diverse industries.
Hire Mobile App Strategists At Appventurez & Flourish Your Business At Great ROIs!
Defining a robust mobile app pricing strategy is not everyone’s cup of tea. It needs years of experience to price an app that has been developed as a breakthrough innovation.
Therefore, businesses should approach a top-notch technology partner like Appventurez. A squad of app developers, designers, & business strategists who can understand their brand value, market preposition, app monetization models, & other significant facets of budgeting their mobile app development project.
Q.1- How to garner a good ROI with a mobile app pricing model?
The best potential opportunity to make profits with your mobile app can be discovered by choosing the right mobile app pricing model. There are four parameters of pricing a product as free, freemium, paid, & premium. Let’s discuss each of them in brief:
1- Free apps can be downloaded for free on the respective app store & they make money by in-app advertisements.
2- Freemium apps are also available for free but with only a couple of interesting features & functions to engage users. They generate profits through in-app purchases by customers.
3- Paid apps were once determined to be the most rewarding strategy of any mobile app pricing plan. However, they’re no longer in trend as free apps are replacing paid apps without forcing users to pay for downloading & using them.
4- Paidmium apps combine a set of free & paid features that allow users to keep using a few features for free & subscribe to pay for some exclusive features.
Q.2- Why does the choice of Platform/AppStore matter in mobile app pricing strategy?
It’s better to target the most relevant mobile app distribution platforms to reach out to your potential customers. Choosing b/w Android & iOS for your mobile app project is another challenge of shaping a powerful strategy to price your product.
On one side iOS users tend to spend higher than those using paid apps on Android. While the user base of Android continues to dominate iOS on the other side. That’s the reason why most business enthusiasts argue over iPhone vs Android to determine the first choice for startups. Hence, one must have a sorted mindset to choose any platform for developing an app with a robust pricing strategy.
Q.3- How do free apps generate revenue for a business?
In-app advertising is a secret behind the revenues free apps generate. Some popular free apps like Facebook, Whatsapp, Facebook, Gmail, Skype, etc. make money on this pricing model.
Co-Founder and VP Mobile Architect of Appventurez. A software professional who is highly experienced in Android, Flutter, React Native. He is a passionate developer with excellent programming skill who believes in bridging the technology gap and making the life of a large number of people much easier through his wide knowledge and experience.
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