App Monetization

Are you interested in learning who buys your apps and who doesn’t?

What if you’re marketing to customers who have no interest in making in-app or full app purchases?

According to Swrve, less than one percent of mobile buyers account for half of monthly in-app purchases. This data is primarily focused on the gaming market, but it gives businesses, small and large, a look into the importance of targeting those people who contribute most.

How can you tweak the designs in your app to target to this small percentage of buyers? Is there a way to locate these VIPs to maximize your revenue and increase exposure?

Let’s learn how to target the one percent and sell your app to those who actually buy.

Get to Those People on The First Few Days

The study by Swrve also states that over 60 percent of money made on an app is on the first day. This means that unless you grab the attention of users and gamers immediately, your chances dwindle in terms of increased revenue. When someone downloads your app is there a prevalent button that leads them to additional in-app purchases? Popups and intriguing buttons make all the difference when you capture those sales on the first few days.

Push People to Your Other Apps

If you maintain a portfolio of mobile apps, consider sharing these apps with users when they download the initial app. Relax Melodies, an app that features calming tunes for sleeping and meditating, provides graphics and links to its other apps.

The links provide descriptions, images and links to the app store in case people want to buy. The one percent of people who play around with your app and get excited about fresh, new contributions to the app stores see these buttons and download the apps to test them.

Package Your Upgrades

Packaging works to target paying customers because it capitalizes on the people who are already considering a purchase. Think about cable companies. Once they have you on the phone they don’t want to let you go. They offer internet for one price, but make it virtually impossible to say no when they package in cable TV for only ten bucks more per month. Anyone would be silly not to get both since the price for just internet is so close to the price of both.

If you sell individual coins for your gaming app at $1 a piece, consider selling a package of 10 coins for $7 to increase revenue.

One Must-Have Premium Feature to Upsell

You’ll often wonder how some apps make money because they provide all the best features in a free version. One way to target the one percent is to find an awesome feature in your app and only make it available in an upgrade.

The Evernote app does this nicely by providing access to offline notes, searchable documents, tons of uploads and more if you upgrade to the Premium version. Sure, people who use Evernote on occasion will scoff at this idea, but the heavy users will jump at the chance for these features.

Incentives Galore

How often do you commit to something because you get something free in return? Maybe you recieve $100 when you open a new checking account or a free round of golf when you purchase three rounds. Upselling by adding value to purchases is a classic method used by the pros. With an app it’s a little different because you can’t always give people a tangible item to purchase more.

App incentives work nicely when you give out freebies for playing a game or using an app longer. Capital One is known for offering raffle entries if you use their mobile app during a certain time period. The fitness app Sworkit provides discounts to stores and websites when you finish a workout.

Conclusion

What do these incentives do? They convince people to continue using the app, increasing the chances of them upgrading later or purchasing something inside the app.

What are you waiting for? Start thinking about the one percent of customers who fuel your cashflow, and cater to those customers. Let us know in the comments section if you have any questions or suggestions about targeting these valuable users.

Photo credit: SumAll

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