Top 5 Important Pricing Strategies for your Mobile App
Today, Smartphone has become an inevitable resource to life. According to a recent survey, about 75% of the people in the world are mobile engaged. The increased utilization of smartphones leads to a great demand for applications. Despite the huge collection of applications under different categories, the appetite for new applications is still glooming.
Mobile App development has become a huge market today. Each and every developer creates the application with an intention to stand out and shine in the competitive environment. So, what are the things that a developer can strategize to shine brighter among the stars? Obviously, pricing and marketing are major the key factors.
For a healthy customer relationship, understanding the mindset of customers is a must. The application developed must meet the expected standard set by the customers. In such a case, the price tagged for the application must also be optimum. So, how to choose the right pricing strategy for your product? Let’s take a closer look at the pricing strategies.
Mobile App Pricing Strategy – Types
The Mobile App Pricing strategy is broadly classified into ‘Free’ and ’Paid’ applications. Free applications are further classified depending on its objective. If your idea is not to make money and just to drive the customers towards a certain direction, they ‘completely free’ are the one you need to opt for. But, the intention behind the application development is revenue generation then ‘In-app advertisement’ and ‘freemium’ are the choices.
If your choice is ‘Paid’ applications then the organization must be ready to deliver something outstanding, since the bar automatically rises when it is termed as ‘Paid’. There are classifications even under the ‘Paid’ as ‘Paymium’ and ‘Subscription’. Take a look at the below factors before choosing your Mobile pricing strategy.
Choose to create an application for free consider these,
The term ‘free’ always creates happiness in mind. If you are in a want of attention from huge customers towards your application then free is the ultimate choice.
If money-making is not the subject but drawing attention is ultimate goal ‘completely free’ suits the best. The entire application is provided for free in this category. The only intention is to provide some kind of service or directing the clients in a particular way. For example, Bank applications are provided completely for free to ease their customers. Consider the coupons in applications which are created to make customers visit that particular site.
Freemium can also be termed as ‘limited accesses’. The application is provided as free for installation. Installed users can enjoy the application but their access is limited to a certain extent. To enjoy the complete application they need to pay a certain sum. Unlike that idea, sometimes the application is provided completely for free but it contains advertisements. In order to escape the advertisements, customers need to pay some amount.
When the organization is in need of money and you believe you can maintain successful customer relationship even with advertisements rolling in the application, you can opt for ‘In-app advertisement’. But a highly good care must be taken that the ads displayed in the application are relevant to the application. The ads scrolled mustn’t be annoying that leads to un-installation of the application by the customer.
Choose to develop paid application consider these,
In paid application, the users pay only once when the application is completely free to use. The paid applications draw loyal and long-term customers. But the drawback of the paid application is that the customers must shell their money before experiencing it. Hence the consumer numbers may be low at the very beginning. But if the application is able to produce awesomeness in the users then the product will reach great heights.
Paymium is more or less similar to the freemium idea. Customers have to pay to install the application and can use only limited features or restricted to a certain level. To experience the application beyond the restriction, the user has to pay a little more. A huge effort must be made by the developer team to create such an application tempting the users to pay more to exceed the restrictions imposed.
Subscription strategy can be used when your application is exceptionally good and have the ability to entice the customers to pay every time. The developers must be completely a dedicated team to produce consistently great contents in the application. The consistency factor is highly important in the subscription strategy.