How To Price Your Mobile Apps?

Developers should not create a fixed price list for their apps. This gives them room to experiment with different price points. A great way to do this is by launching the app with a higher price, then eventually lower it over time. Most often, launch time is the perfect time to lure more users to use and download an app.

Price your mobile apps

Completely free

These apps usually act as add-ons to an established product or service. The goal is not to make money directly from the app, but instead to drive people to other revenue streams. Companies also create free apps to facilitate customer service and to aid customer retention efforts. On these apps, customers can often receive or activate additional offers, such as a free overdraft or credit limit increase.

Freemium

Freemium apps can be downloaded for free but include limited functionality and features. There are three freemium strategies to choose from depending on the tiers, features, and incentives. 

In-app advertisements

These apps are platforms for ad revenue. Advertisers rent space within your app, and people see those ads when they use your app but the app’s still free to download.

Build a product that users want

A product should be built with an aim to address user concerns and it must solve their problem. When you build something that users truly want, it is easy to decide the price.

Study the market and competitive landscape

Market-driven pricing is a great approach to arrive at an optimum price point for your mobile app. Studying the competitive landscape and analyzing your user base can help you discover opportunities where the competition is lacking. 

Robust marketing strategy

In today’s fast-paced environment, the power and reach of social media is expanding every day. In such a scenario, backing your pricing strategy with a robust marketing strategy is more like a necessity. Understanding the current market trends along with a marketing strategy in place helps in maximum user acquisition.

Affordability

Penetration pricing strategy helps businesses attract new customers due to the low cost of making an app. It is considered a classic strategy because it uses behavioral psychology to drive customers to purchase the product.

Study the market & competitive landscape

Market-driven pricing is the most effective approach to set an ideal price for your mobile app. By analyzing the user personas and learning the competitive landscape, you can explore various horizons & opportunities.

Effective marketing strategy

It’s essential to support your pricing strategies with a robust and effective marketing approach. Also, rich content curation for all your social media platforms helps spread awareness about your app and generates maximum leads. 

Paymium

Paymium is the amalgamation of freemium and paid model. For paymium apps, the users not only pay for the app but also pay an additional cost to avail an added functionality. Although it is not a widely used strategy, it does have the potential to generate great revenue streams. This strategy can rapidly gain traction if exciting content, unique functionality, and useful features are introduced on a regular basis. 

Conclusion

Pricing models for apps play a fundamental role in determining an app’s success. Your product pricing strategy for apps should meet market and user expectations, offer the perceived value and help you accomplish business goals.