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How to Boost Revenues From Your Mobile App

“Mobile apps are anticipated to generate around $189 million by 2020. – Statista.”

Be it to connect with friends, play games, listen to their favorite music or stay updated with the latest news, mobile apps are an integral part of every smartphone user. On average, a person is likely to use 9 apps on a regular basis and 30 apps each month. (Source)

Being an app marketer, to be able to successfully launch your app is indeed commendable, but it is equally important to look for profitable business growth for your app.

Research states that after downloading an app, 25% of users use it just once and more than 50% of users stop using it altogether after 3 months. (Source) In such a situation, keeping your users engaged and boosting revenues can be a challenging task. However, it is imperative to generate mobile app revenues for your continued success.

Here are some of the ways to boost revenues from your mobile app –

1. In-app purchases

Mobile app revenues get the maximum boost through in-app purchases. Businesses with different types of apps will have to incorporate different methods in their business model in order for users to show purchase intent.

For example, if you consider gaming apps, the main game (which can be called the base product) is always free. When a user first installs the app, he/she may be just interested in the game even if there are other inconveniences like ads.

However, once into the game, the player may want to buy extra lives after losing the last free one, or purchase items that may help boost their scores and keep them ahead in the competition. Delivering such upsells at the right moment can make the chances of in-app purchases more successful.

Mobile app revenues

  Source:mobygames.com

In the case of a music app, users may first get the base app and pay for an upgrade where they can enjoy unlimited music, with more choices minus the ads.

2. Localization to attract more users

“App localization can result in 128% more downloads and a 26% increase in revenue.” (Source)

Investing time, effort and resources in-app localization can help you break regional, cultural and language barriers and open doors for more engagement and conversions.

Moreover, users are also willing to pay more to geta local experience of an app they may be already using. Before implementing app localization pointers such as language, countries, geography, etc should be taken into consideration.

Source: ProAndroidDev

With such diversification in your customer profile, the chances of word-of-mouth marketing are higher, thus providing a greater brand resonance and a higher competitive advantage.

3. Using push notifications

“Promotional push notifications drive 9.6x as many users to make a purchase, and increases in-app spend by 16%.” (Source)

With multiple brands offering the same product or service, customers can often get confused about what to purchase and from which app platform. This is the reason why many users abandon the purchase process midway.

Push notifications can be a great savior in such situations and are very essential to get your customers engaged and increase your mobile app revenue.

     Source: Business 2Community

Push notifications allow engagement with customers in real-time, thus delivering quick results. However, prior to sending notifications, it is important to analyze behavioral insights of the customers and send a tailored message that will compel users to open the app and complete the desired action.

Timing is also very important in this case. Users should feel that they are being helped by the message, and not disturbed. In such cases, a user engagement platform can be of great help. For example, SmartKarrot provides a  feature called smart notifications, where the right message can be delivered through the right channel, and triggered at the right time.

4. Providing value for customer engagement

“Do you know that89% of businesses are set to compete just on customer experience? This makes it all the more important for app marketers to take customer engagement seriously to stand out of the noise and win their loyalty.” (Source)

With valuable and relevant content, user engagement, as well as retention, can be successfully obtained. Moreover, personalized content is very important to provide value to your app users and encourage them to use it more often.

Do you know that 1.5% of app users will read a message with generic content, whereas a personalized message will have a 5.9% open rate? (Source)

Using demographics along with other factors like ‘last viewed’ or‘recently purchased’ can help you provide proper value and target the right audience. For example, sending a personalized push notification to women between18 and 27 who live near the beach and have recently browsed the ‘beach dresses’ section on your app can make them interested in the same and encourage them to make a purchase.

5. Inspiring urgency to drive conversion

Providing encouragement to make a purchase can help drive conversion and boost revenues when you notice that users are engaged with your app. For example, if a customer has added an item on the cart and not made the purchase yet, an in-app messaging or a push notification can help make the purchase – provided there is a sense of urgency in it.

“ Only 5 items left, get yours before it’s gone” or “get free shipping on any item purchased in the next 2 hours” are some of the ways how you can encourage your customers.

Mobile app revenues

                                              Source: AppsBuilder

An important thing to remember here is that you have to be honest about the urgency you’re providing. Customers can easily make out a cheap marketing gimmick and that can be detrimental for your business.

6. Leveraging the power of social media

“Statistics state that there are 3.5 billion social media users around the world, and the number is continuously on the rise.” (Source)

The above-mentioned fact is the primary reason why the power of social media cannot be overlooked for boosting app revenues. Simply by sharing your app link on social media can help you gain new users and increase your revenues.

Existing app users also serve as brand advocates on social media to get you, new customers, thus increasing users organically. Consider drafting a special promotional message encouraging existing users to spread the word about your app in their friend circles. Another way to acquire users is by using an app referral program. Referral programs can be defines as per your convenience through engagement platforms like SmartKarrot which provide an in-app referral feature. Also, customize the look and feel of your referral screens for providing a seamless brand experience to your app users.

A small incentive can further encourage people to do the same. For example, a user who purchases something from your app can get a 15% discount on the next purchase if he/shares the same on Facebook.

Social Media Influence

Source:shopify.com

At present, with so many apps in the market, there is tough competition for marketers to stay and flourish in the game. If your business involves having a mobile app, it is crucial to establish a strong route of conversion that users can adapt easily and help you boost revenues.

Even with the right intent and resources, sometimes it may get difficult for app marketers to implement everything together – from customer experience and satisfaction to boosting mobile app revenues and business growth.

However, tools like SmartKarrot can take care of that problem. With benefits like quick setup options, cross-device targeting, and minimal coding, you can go beyond just market automation and achieve true engagement leading to higher revenues, scalability, and growth.


Responses

  1. Avatar
    Ian Hutchins

    I’ve always found in-app purchases to be far better for revenue than AdMob. I place far less ads now and rely more on users purchasing bundles instead. Your second idea is simple yet really smart, I should be localizing my app better. I make use of #5 as well when in-app purchases are on sale, a timer works really well and I think many end up purchasing when they otherwise wouldn’t.

  2. Avatar
    Gregory Larsson

    In-app purchases are definitely the way to make money, standard ads aren’t even worth it any more. I choose not to show any ads, they are intrusive and often waste time. Instead, I focus on carefully priced bundles and items. When done right, you can earn amazingly well.
    Rewarding shares and referrals can be highly effective, too. If you can get a constant flow of shares and conversations going on social media, you’ve done it right.

  3. Avatar
    Edgar Bolton

    In-app purchases have always been the king of revenue sources in mobile apps. If you can tease the extra features properly and make users think they will get lots of use from it, you’ll bring in lots of money. A discount timer is particularly effective as well. I’m glad you mention the power of social media, too. I like to offer users a chance to share achievements, people do like to brag!

  4. Avatar
    Phillip Lamarr

    Social media can be a blessing if you can get your content to go viral, I’ve managed it a couple of times and it really boosts the number of app installs which then translates to more revenue.
    I like the urgency tactic as well, I’ve done it a few times and it works. I just don’t like when companies lie about it!

  5. Avatar
    Keanu Taylor

    In-app purchases are of course the main method of securing a nice amount of revenue from your app, but traditional CPC advertising is still a big deal. Placed in the right spots, banner ads can achieve a high CTR and really boost your revenue. If a user doesn’t like ads, offer an in-app purchase to remove them!

  6. Avatar
    Robbie Myers

    In-app purchases are essential for anyone wanting to monetize, your app is basically dead in the water without them. Localization is a really good idea as well, I didn’t consider it when thinking of ways to increase revenue but it could work. Push notifications are a big one, you could even sell ad space on them if you wanted.

  7. Avatar
    Trevor Douglas

    The start of the year has always been quite bad for ad revenue, advertisers just aren’t spending much money. Thanks to the suggestions in this article, I’ve managed to get back some lost revenue! App localization had a bigger effect than I could have imagined. Pair that with better push notifications and a social media buzz, you have extra revenue and better engagement! SmartKarrot really do know their stuff!

  8. Pingback: SaaS Tip: How to measure customer growth? - SmartKarrot l Comprehensive Customer Success

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