Best Pricing Strategies To Follow For Your Mobile App Project

Are you looking to monetize the mobile app to increase revenues? You came to the right place.

Choosing the right pricing strategy is a difficult task as you have to conduct deep research about the pricing strategies. In mobile application development, the most crucial factor is to set app development cost and its pricing strategy. It is proved that most of the traffic comes from mobile apps, which means the pricing strategy should be perfect and convincing. Your app must derive greater value so that people can think about its subscription. Companies that provide mobile app development services mostly suggest choosing the right pricing strategy according to the services provided in the app. They calculate each possibility of earning revenues and suggest to you the best ways. In this blog, I will discuss all the major factors, that should be kept in mind while deciding app pricing strategy.

Pricing Strategy For Mobile App

Analyze Consumer Behaviour

It is very important to understand consumer behaviour if you are looking to monetize the app. Today most people are well educated and, smart enough to take financial decisions. People will definitely invest if they found your app prices reasonable compared to the services which you are offering. If they don’t find it profitable, they will go with your alternatives.

Now the question arises How will your customers will select only your app to avail services? Well, we cannot exactly analyze the human mind, but to attract more users, you have to focus on increasing the value of your product rather than the price. People compare all the available options present in the market then they take final decisions, so make sure that your app offers more value than your competitors.

Keep Various Price Ranges to Check the Purchasing Power of People

To identify the purchasing power of people, you can keep various price ranges. Various product testings should be done to get a market response. This is one of the most used techniques of businesses which helps them in setting price range of their product. If will not be able to meet your target revenues if your customers are not paying what you want them to pay. A lot of patience and planning is needed to set the aright product price according to the market demand.

Market and Competitors Analysis

In-depth research is needed on competitors products and pricing strategies. By analyzing the details you can add more intuitive features and services in your app, which your competitors have avoided. Overall it helps you in discovering the opportunities where your competitors are lacking. You can take the right decision by conducting market research.

Find What Your Users Require The Most

The first of mobile app development is to decide the on-demand app that is getting famous in the market and, what service it offers. Mobile app development cost varies according to the business needs. Plan an application that genuinely resolves issues that users usually face, then only they will consider investing in it. It is all about designing a product that your users desire the most.

Robust Marketing Strategy

Before deciding the price and launching the app, make sure to develop an advanced marketing strategy for your app. Advertisement and social media advertising give you access to a large audience. You can simply attract people to your app and convince them to give it a try. Developing an understanding of the current market trends, and preparing the strategies according to it can result in mass user acquisition. You can have a maximum number of downloads through social media marketing.

Cost-Effective

Keep the price lower as much as you can, then after some time makes slight increases in it. If your app offers great value at decent prices then there are chances that your users will make a purchase and also recommend it to others. Your customer base will become loyal, and they will start doing mouth publicity of your app.

What is an App Pricing Strategy?

It’s a medium of earning revenues through the app. Nowadays everything has become easy and accessible through mobile apps. You only have to tap on mobile to avail your required services. People see a lot of potential earning in running their own mobile apps. But, it is not easy as it seems to be, because a lot of patience and effort is required with appropriate marketing strategies. Various types of pricing models are available in the market, that’s why your pricing model should be different and effective from all.

Basically, four types of pricing strategies are there that are followed in the market-

1. Free
2. Freemium
3. Paid
4. Paymium

They play a significant role in in-app marketing strategy. Your consumer acquisition is totally dependent on this. Continue reading to know all of them one by one.

Free Model

In this model, users can download the app at no cost. It is totally free for customers. If you want to attract more users, this is one of the best ways. This model is mostly used by businesses that want to create brand awareness across the region. Free apps are used worldwide to mostly offer service extensions, customer support and to make better communication with the users. This completely free strategy works when the company products and services are well established in the market and gaining huge popularity. Free apps are mainly about enhancing customer experience and less about gaining money. App owners use free apps to redirect the customers to other revenue streams. Apart from this, it is also used for branding purposes. Below mentioned are a few pros of adopting the free model.

• Increases the chances of having more customers.
• Number of downloads increases at a significant rate.
• Boosts consumer engagement.
• One of the best ways to generate revenues.

Freemium Model

It’s a modified version of the free model. Here you can download the app for free, but you will have access to only a few features. The Freemium model includes limited functionality. There are three ways included in the Freemium model through which you can earn revenues.

Firstly, Customers can use the app for free, but to use extraordinary features, they have to make a particular payment. Most gaming apps use this strategy.

Secondly, users can use the app features for free but for a limited period. This is also the most used pricing strategy among businesses. Here people get the idea about the app functions and features in starting, and once they get the whole idea about the app and find the app fruitful, they have to pay more to use it further.

Thirdly, users can download the app free, but they have to face advertisements every after few minutes. Built-in advertisements irritate the most. To get rid of the advertisements, companies ask for a small number of users.

Paid Model

The name itself describes its meaning. Here users have to pay to download the app. This model is the least famous among new startups because most of the market is captured by the free and freemium model. If you have to target potential users through Paid model, you must have a highly effective marketing strategy. Apart from this, your app must have something different and unique from other free apps available in the market. Users expectations increase when they download the app by paying price. If you want to leverage this app strategy, you can provide app services free for a limited period. It is a good strategy to understand consumer behaviour and preference. Here are a few of the benefits of Paid model-

• Generate high revenues once it gets famous.
• Best way to approach people that you have something different from others.
• Revenues can be earned through modes as well. They are not directly linked with users engagement.

Paymium Model

Paymium Model is less effective than all of the above. It is a combination of Freemium and Paid model. To download the app users have to make payments. In this model, users have to pay an additional amount to access extra features available in the app. This model best works when your app has highly influential content, unique functionality, and different useful features that other apps don’t have.

Conclusion

The app market is increasing at a rapid pace, and people who think to own apps are mostly going for mobile app development services. The scope of earning revenues through the app is very high compared to other mediums.

The app development cost depends on the features and functions, that you expect to have in your app.

If you are planning for having a mobile app, you have to contact the best mobile app development company, as they handle the app development process very well. You just have to share your ideas and expectations.

Article source: articlestheme.com