Mobile apps are rapidly getting popular among service providers and businesses. From food delivery and e-commerce stores to payment banks and healthcare, there is almost no industry where mobile apps haven’t proven their market value.
So in the era of digital technology, mobile apps play a significant role in businesses and people’s lives.
Now, businesses have realized the importance of having mobile apps. But that is not sufficient. They also need to optimize their mobile apps to improve user experience.
The primary reason to opt for mobile apps is users prefer mobile apps more than websites. This makes a strong reason to create mobile apps for reaching out to massive customers.
Okay, now, before we move on with the ways that generate revenue for businesses using mobile apps, we will discuss the top reasons why mobile apps are better.
Why Businesses Invest in Apps
Personalization is about offering effective and seamless communication to users based on their interests, usage behavior, and more. Mobile apps allow users to set up their preferences in the beginning, based on which they will be served with customized content. With mobile apps, it is easy to provide users a personalized experience.
Apps help track and observe user engagement and provide custom/personalized recommendations and updates to the users.
This improved user experience could increase conversions significantly.
Easier to send Notifications
The primary reason why many businesses want to have a mobile app in the first place is that it has the ability to send instant notifications to users.
In-app notifications are the alerts/messages that users can only receive when they open an app. On the other hand, push notifications are the notifications that users can receive regardless of the activity they are doing on their mobile device.
Most mobile apps can work offline and perform a few basic functionalities. Apps play a crucial role as they are accessible due to their offline working features, giving them an edge over mobile websites.
Although apps require internet connectivity to perform tasks, they can still offer basic functionalities to offline users.
Can Utilize Smartphones features
Mobile apps can use features of a mobile device like the contact list, camera, GPS, phone calls, compass, etc.
These features reduce the work users would have to do otherwise. For your understanding, let’s say a user is completing a registration form on a baking app and has to submit essential documents and upload their photographs to complete the process. Now, the app allows users to use their mobile device’s camera to capture and upload a photo.
Device feature shortens the time users require to perform a task in an app, thereby boosting conversions.
Users spend more time on Apps
EMarketer reported that 90% of the time users spend on their mobile is in apps.
As we all know, users spend a substantial amount of time on mobile devices. Even when they are not actively using a mobile app, they are still aware and reminded of the app’s brand. To be precise, the icon of the app serves as a mini advertisement for your brand. An app’s existence on a user’s mobile helps influence the user’s perception of a brand subconsciously.
Okay, we have seen the reasons to use mobile apps for your business so far. Now that you have built an app. What is your next step? How do you plan on generating revenue and getting a return on your investment?
The good news is that the market of mobile app development shows zero sign of slowing down. Each day the app marketplace is growing tremendously with around 3739 new apps added to the Google Play Store every day . Due to this high competition, it is mandatory for businesses to have more patience, creativity, and knowledge to build effective and profitable monetization models that will bring revenue.
To earn revenue using your mobile app, you need to market it before, during, and after the app’s launch.
How Apps drive Revenue
One of the common yet effective mobile monetization methods is in-app ads.
This works by connecting your mobile app with third-party businesses/advertisers or through an ad platform and having them pay you to host highly-targeted ads.
This works effectively when
- You gather demographic and behavioral data.
- You don’t have any plan to profit from users directly.
- Your app has active users.
The freemium monetization model offers three versions of your app. They include,
Businesses find this strategy an effective way to create a massive user base. This model works effectively as long as the free version of the app has features that interests target users
Be clear about the limited number of features you offer to non-premium users
It works best when
- Features of the app add value to users.
- You want to generate revenue directly from ads and users.
- Your free version of the app is appealing enough to compel users to pay to access extra features.
Email Marketing / SMS
The success of the app relies on knowing the activities of your users.
People rarely change their mail addresses, making email newsletters the right strategy in motivating them to see your content and interact with it.
The same applies to SMS marketing. People often tend to check text messages they receive, and the same goes for in-app messages.
This model works successfully when:
- You focus on enhancing user engagement.
- Your campaigns are targeted to the right audience at the right time.
- You seek to bring back inactive or former users and compel them to re-engage.
Social Media Integration
An increase in users could result in an increase in revenue. For this, you will have to have a wider outreach and visibility that only social media can provide.
According to Hootsuite, 90% of brands use social media channels to increase their brand awareness. Hence, the main way of gaining attention and reaching your target audience online is via social media.
Integrating social media share buttons in your mobile apps helps your business gain more exposure — which could translate into more app downloads
It will prompt them to share offers/purchases from your app onto their social networking sites.
One of the effective ways to make money through mobile apps is when purchases are made in apps. This model is way more effective than using ads, as more than 50% of app revenue is generated via in-app purchases.
This strategy helps generate revenue better and directly links you to your users as they purchase your products. It is recommendable to have your own in-app store that lessens the hassle for users to browse through your services and products.
It is not just limited to businesses that deal with physical products; even if you are service-based, you can get your users to pay through the apps.
To have successful in-app purchases, provide limited-time offers that your users won’t want to miss out on.
Improving the customer experience—by providing a personalized experience and allowing users to be more efficient–has resulted in more growth opportunities for businesses
What do you think?
Leave a comment below and let me know how you plan to leverage your mobile app.