We can’t stress the importance of mobile apps in building business anymore. It has become the main facet of business operations. To an extent, the increasing trend is affecting marketing activities and initiating cut-throat competition among different market leaders.
During the mobile app development and launch period, it is essential to focus on the product’s results but deciding the price at which the user is ready to buy is the major point of discussion.
While the App Store and Play Store are getting flooded with the number of apps every month, it is becoming harder for app owners and online businesses to grow their balance sheets.
However, choosing the right pricing strategy helps businesses to make a clear assumption on ROI, success, and scalability of the product. So, moving forward we will discuss the key tactics of deciding the pricing strategy for your mobile app and shed some light on different types of pricing models.
How to Choose The Best Product Pricing Strategy For Your Mobile App:
While you begin to figure out your pricing strategy, you need to consider many different factors like app functionalities, market research, the value of the app, market competition, etc. Apart from this, the key factors that often play a major role but are often overlooked are discussed below.
- Consider Human Psychology And Their Behaviour
Deciding the price is more about considering human behaviors and psychology rather than the numbers. Users tend to compare every product price with past purchases and other similar products that they have ever come across. There are already multiple categories of similar products and therefore to win the user’s confidence, it is essential to focus on delivering value at minimum cost, thus its necessary to build a cost-effective app.
Therefore, you need to focus on competitive study and deliver valuable products better than the existing ones.
- Check The Value Of Your Product At Multiple Pricing Scale
This is one of the essential things to know how much the users are ready to pay for similar apps like yours. The related information can be gathered by checking the app product at different pricing stages and evaluating how the market is responding.
You must try out the recurring revenue stream where you can add more functionalities, discounts, and offers to the app and take a competitive advantage in the market.
It is advised to avoid per-pricing revenue initially and analyze the results in a 360-degree view.
- Prioritize User Preferences In Your Product Development
Prioritizing cost is dependent on the value of your product. If you are successful in addressing user concerns and can solve their issues i.e. offer them the level of satisfaction that they expect, then you can easily set the pricing of the product at your convenience. It is always advisable to add features that can improve your app value i.e. focus on improving app design and user journey.
While you move ahead in the path of deciding pricing model, you need to know the cost of app development which includes the factors like actual cost of the app, its value, and the money required to achieve the goal.
Moreover, you can simplify the penetration of the pricing model if you collect recent market data, competitive strategies, and the latest trends. Keep sharing updates and other functional features in order to take a conversant decision on the pricing model.
- Conduct a Market Study And Check the Competitive Landscape
In any field, market data is a crucial key to deciding the ideal step in taking things ahead and a similar approach is being followed here.
When you already know:
- The current pricing strategy followed in the market
- How users are reacting toward it
- How competitors are setting their standards;
You can straightforwardly discover the opportunities and loopholes in the market pricing strategy and hit the right shot. Prior information on what is increasing the value of your app and how you can deal with the market competitiveness will help in making smart decisions.
- Craft A Strong Marketing Approach
Know that your pricing strategy can do wonders when it is communicated in the right manner with the right set of marketing strategies. Social media is one of an excellent way to reach your target audience and hold them in the long run.
You can easily generate more leads and spread product awareness among new users by curating trending and useful content that helps create buzz around your product.
Notably, the success rule of acquiring more customers is to include popular marketing trends along with robust market strategies.
- Choosing Between Paid Product & Free Product
Launching free apps in the market is always a good choice but again it is dependent on the type of product you are dealing with and the purpose it holds. It is quite obvious that free apps will attract a huge customer base compared to paid apps. Besides, if you wish to launch the paid app then make sure that your product is offering extremely unique services and features that others don’t have. Also, keep track of competitive pricing see what others are doing in your niche and build your strong approach. These things will also affect the decision regarding the pricing model because if your competitors lack the competency to deliver advanced features like yours then you can definitely attract more customers.
Top Significant Tips To Win The Better Mobile App Pricing:
While we have already discussed ways to select the product pricing strategy but when it comes to business branding, it is good to consider even the minute-related details. The below-mentioned tips can help you outline the best price for your app:
- Play With Multiple Pricing Strategies To Launch Your App
Pricing holds the power to change the perceived value of the customers and therefore it is essential to follow a hit-and-trial method and analyze multiple responses and results. After a deep study, you will be able to project the suitable pricing that gives you the best business outcomes.
- Always Sell Your Product At A Higher Product Value
Pricing is not always about deciding the numbers at which you are going to sell the product rather it is about targeting the right audience by delivering value. Using this strategy, you can always edge your competitors by leveraging your expertise. This strategy simplifies the selection of prices because you have already created a strong value proposition in the market.
- Add Uniqueness and Competitiveness To Your Mobile App
No matter what pricing strategy are you choosing for your mobile app, if you are delivering a value proposition, you can achieve your pre-desired business goals. Add a pinch of customer feasibility and uniqueness to corner your product from a huge group of other mobile apps available in the market.
Now, let us discuss the different pricing models that can help you draw a robust conclusion on determining which strategy is suitable for your business.
Types of Pricing Model:
- Free (Attract a strong user base using this strategy)
This strategy is used by brands that are looking to have a huge customer base. Increasing brand awareness is one of the major causes of this strategy.
- It helps different brands in revenue generation
- It helps boost user engagement
- It increases the chances of app downloads
- Advertisement is the key to gaining popularity using this strategy
Paid (Used where brands have loyal customers and unique functionalities)
This model is not as effective as others where the user need not pay any extra charges. Initially, the user has to pay to download the app. Still, it exclusively benefits users.
- No advertisement required
- Revenue is generated directly from the app
Freemium (Used in a highly competitive market)
With the limited number of app functionalities and features, users can download these apps for free. In case users want to get access to more advanced features and functionalities then they can pay for further app usage.
- It helps in gaining organic traffic easily
- It is known as a good source of income
- If you succeed in offering usability to the users, then they will be ready to pay more.
Paymium (Used in less-competitive market)
If you combine paid and freemium models then it will be called the paymium model. In this model, the user has to pay a little amount for the app and there will be extra charges for the additional features used by the users.
- The money stream remains on-going.
- Convince the users to take creative and unique actions that help in attracting more and more users.
- Provides an opportunity to add advanced features and rich designs.
The success of any mobile app development is mostly dependent on the pricing strategy. So, if you are trying to launch or re-launch your product in the market, then studying the pricing strategy is equally important as conducting competitive research. While you need to consider many factors that are mentioned above, ensure that you meet the market expectations and fulfil their needs to meet the business goals.