After the development of a feature-rich mobile application as per the customers’ demands, the next step forward for a company is to set up its price. From an in-depth research to other considerations, a lot goes into the accomplishment of this task. Read on to find out how you can formulate a well-planned pricing strategy for your mobile application depending on its features.
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A recent survey from Statista indicates that mobile devices currently drive almost 50% of the global web traffic. This explains why mobile app development companies are keen on investing in mobile applications.
When it comes to mobile apps, one vital element that concerns the majority of companies is their pricing strategy. Usually, it takes a lot of effort to prepare the blueprint for it. You might need to make several considerations to accomplish it in the right way. Both these factors are important for the success of the pricing strategy of your mobile app.
Have you been looking for ways to effectively plan the pricing strategy for your mobile app off late? If yes, this post will guide you through the steps to have the best pricing strategy for your mobile application in place.
App pricing strategy refers to the plan by which you can monetize your mobile application. In other words, it is the blueprint by which you can make money using your mobile app.
Four types of mobile app pricing strategies include the following:
Now that you know what pricing strategy for a mobile app is all about, you might want to draw up the best strategy for it. Before you proceed further, you need to know that both the formulation as well as the implementation of an effective pricing strategy are essential for achieving success.
Analytical thinking is necessary to make the right choice from the aforementioned options. By thinking analytically, you can strategise a model based on the suitability and aptness of pricing.
Sometimes your gut feeling might prompt you to make a decision. But remember that it may not lead you to a decision that will deliver you your desired result. Instead, you need to focus on the purpose of your app as well as your competitor’s efforts. A good understanding of both will always keep you and your efforts on track.
Also, include the following points in your scheme of things to choose the best pricing strategy:
You might feel that your mobile app is worthy of a certain price tag. Also, you might have a revenue generation target in mind depending on it. But you will not be able to achieve it unless or until your customers are willing to pay the price that you want them to pay.
While you may not read the minds of your entire target audience, you can determine what the majority of them feel. The best way to do this is to check your mobile app at various price levels.
Find out which one works the best with your target audience. If you intend to widen your subscriber base, you could also consider offering your mobile app for free.
The price tag you attach to your mobile app will eventually boil down to numbers. Even if its pricing is high, you have no reason to get disheartened. Your customers might pay the price as long as the value of your mobile app is higher than the price tag that you attach to it.
By conveying the story of your mobile pricing well, you can convince your customers. For best results, present the product in a way that your target audience feels the pricing of your mobile app is fair and justified.
Take a moment and think about it. You have a great product idea that you believe will work like a charm. But the developer who works on your app fails to materialise it in terms of its design and functionalities. No matter how inventive your concept is, even the best product idea would go to waste in such a situation.
You can avoid this situation by focussing on the design of your app.
Here are some points that you should remember while designing the mobile application:
If you launch a premium mobile application, add a wide range of functionalities to it.
Users perceive free and premium apps differently. As a premium mobile application comes at a price, users expect it to be perfect and as per their demands. Given the intense competition in the mobile app development industry at present, mobile app owners do not hesitate to release a free version of their app.
It is a proven strategy to maximise the user base for a mobile app. Your best bet is to formulate a pricing strategy for your mobile app based on its functionalities. Try to keep the pricing flexible. If you wish to release a premium version of your mobile app, add as many functionalities to it as you can.
Popular apps have higher pricing for a reason. The functionalities of such apps are proven and time-tested, so users do not hesitate to pay a higher price for them. On the other hand, a new app idea is not well known to users. Knowing the demands of potential customers is necessary for such an app idea.
Want to set the price of your mobile app according to the market demand? Put yourself in the shoes of your target audience for a moment. Plus, do detailed research and analyse the data that you get.
These steps will help you understand the pricing expectations of your customers based on the market demand.
The ultimate aim of mobile app users is to get the best application for their purpose at the best price. By working out the right model for app revenue and customer loyalty, you can create a winning pricing strategy for your mobile app.
If you have a long-term plan in mind, it should reflect in your pricing plan. Keep the pricing fair and reasonable so that it doesn’t seem too high to your customers.
Also, do not forget to set up the right price expectations concerning enterprise plans and in-app upgrades.
Before attempting to formulate a strategy, you need to know about the imperatives. Only then you can decide which model, out of the existing ones, will help you achieve your objectives.
Sometimes a specific idea might look tempting to you. However, it doesn’t mean it is the best strategy you can think about.
Before you make the final call, do not forget to make the following considerations:
To sum up, you cannot rely on a fixed-mobile app pricing model for a long time. You need to keep making changes to it from time to time to keep it relevant as per the market dynamics. Want to keep your mobile app unaffected by the pricing fluctuations in the market? Attach a high price tag while going live with your mobile app.
You can reduce the high price tag whenever necessary. Even as you attach a high price tag, remember the golden rule: be reasonable while doing it.
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