In just a matter of a few years, mobile applications reached unprecedented popularity along with becoming a necessity for people.
The current scenario stands to be the one where if any business wants to survive the cut-throat competition or wants to make it global, they need their mobile app by their side.
But the question is what to do with it when you have it – How to grow sales from mobile app? Since the whole point is to drive more sales or gain profits, right? Well, this is what we will discuss in detail today.
But first thing first, let’s look at the applications that are bagging big in the year 2020.
Applications with the highest revenue in 2020
Tinder – One of the most popular dating apps, Tinder was deemed the top-grossing app worldwide in the non-game category for January 2020. Its user spending according to Sensor Tower amounted to $85.9 million for just the above-mentioned month, followed by YouTube ($65.5 million).
Netflix – Undeniably one of the most popular video-streaming apps, Netflix only in its first quarter alone of 2020 gained over 5.76 billion U.S. dollars – a significant increase from 4.5 billion in Q1 of 2019.
Coin Master – Loved by billions of users, Coin Master earned a shocking $91.28 million revenue in March 2020 as per the reports of Statista.
Ways in which mobile apps increase profits and sales
Sans doubt, the above-mentioned examples were pretty solid evidence of the potential mobile applications hold in procuring higher ROI for your business. However, curiosity still remains regarding the “how” of it all.
This is something that we will be talking about in detail in this article. Let’s understand the ways or rather the measure at your disposal that can help you get more out of your mobile app for Android and iOS.
Become a BRAND
You were a business since your inception, but to grow out of your primitive mold, you need to become a brand. Mobile app creation is one such step that can help you create a brand image among users. For instance, how do you come to recognize a business as a brand? The most probable answer might be from their website or a mobile app.
Once your mobile app is identified by a user on the app store, it perpetually binds the users to trust your app as a brand and they are more willing to try the services provided via the app. Now, to create a unique brand image, you must use your brand colors while designing your business app. Doing this will ensure your mobile app resonates with your business.
Offer freemium first and then paid services
This must not be the first time you have heard of ‘freemium’ and it won’t be the last. Deemed as one of the most popular app monetization models, freemium is used by almost all the big organizations in their app business model. Netflix, Spotify, Evernote, and even Grammarly (Google) – all diligently follow it.
You don’t want to block the potential users right after the discovery stage – so steer clear of offering paid services right away. Make sure to offer basic functionalities/services of your app under freemium. It is then you encourage users to try the paid features by using push notifications, engaging content showing the importance of paid features for users.
Procure profits from the crux of data
Do you know what is the next-gen fuel of many industries? – Data. Sure it did not come as a surprise to you, right? After all, technologies such as Big Data and Machine Learning are all based on the data procured by the plethora of smart devices.
This is a remarkable mobile app benefit for your business. If you can analyze the data and incorporate it into your business strategies, this will definitely be your Midas touch. The fact that 89% of digital businesses invest in personalization is enough as a proof why data analysis and putting it to the right use – personalization – is crucial to increase your sales and profits for a long time.
Impeccable push notification strategy
As we have discussed, push notifications are not only useful to promote paid services but also great for passing crucial information. To avoid the fate of apps that are unused for a prolonged time and then are uninstalled altogether, you need to curate a remarkable push notification strategy.
As per Airship, apps can increase the retention rate to even 190% by using push notifications in the first 90 days of app install. You just need to understand the right amount, time, and content you need to use to attract users back to your app.
Social media – Use the greatest tool at your disposal
Did you know as of January 2020, there were 3.80 billion social media users – that’s precisely a staggering 49% of the world’s total population, crazy right? Now, imagine you being able to use this valuable resource at your disposal. There is no limit to the possibilities of your app and eventually, your business will be bestowed with.
Platforms like Instagram, Facebook, Snapchat, etc. are the prominent ones you need to target on a priority, then work your way up to other platforms. You must use rich media content showcasing the USPs and values of your brand in the most effective and expressive way.
In-app purchases model
In-app purchase app monetization model made up for 48.2% of overall mobile app revenue in 2019, followed by the Paid app model revenue with 37.8% – a striking difference indeed. To be precise, more often than not, this model is aggressively used by gaming apps like PUBG, amounting to 79% of gaming apps.
Unlike the freemium or paid model, you offer most of the features of your app free but charge only for certain additional functionalities and perks. This adds as an additional profit from your mobile app. Since this is not outright demanding of the users to spend, users tend to make more in-app purchases than they would pay for the app upfront.
In-app advertisement – another source besides users
Now, you need to understand your revenue sources. Realizing that besides users, there is a whole other resource you can benefit from is important. In-app advertising is a tried and tested monetization model used by many popular apps like Instagram, YouTube, Spotify, and more.
In fact, revenue generated in 2020 via in-app advertisement is predicted to reach approx. $188.9 billion – an estimated increase of 200% in the last four years. So, recognizing beneficial advertisers and establishing a price on your worth will take your business a long way.
Offer Multiple payment gateways
Isn’t it plain absurd when you spend all your time, say shopping on an m-commerce app, or just try to make in-app purchases in a mobile app but there aren’t enough payment options? This isn’t the user experience you want your users to have.
To that end, you need to ensure that you integrate enough, reliable, and relevant payment gateways in your mobile app to avoid losing customers due to this lack of services. You can integrate third-party apps to facilitate users even more.
Set Up a Loyalty Program
According to HBR, companies that have robust and strategic loyalty marketing programs are able to increase profits 2.5 times faster than the contenders. So, there is no need to doubt its effectiveness, right?
This is a great way to reward your loyal customers and a chance to encourage and convert your potential loyal users. You can offer various deals, discounts, and limited offer sales to boost your sales, eventually skyrocketing your revenue is a short time.
Although we now have social media as the king of marketing, one cannot dispense Email marketing as ineffective or less important than the rest. The fact that the amount of emails sent and received each day is going to increase to 347.3 billion in 2022 from 293.6 billion in 2019, is enough to know the relevance of email marketing.
To that extent, you need to create an email list, encouraging users to subscribe to your newsletter, or simply use the account information they used while logging in. This will help you build long-term relations with your users and resultantly increase your ROI.
If you have an m-commerce app, then let us tell you that 90% of online shoppers go for their native language, if provided the choice. This shows the importance of localizations and its need by users. Denying such a feature might cost you a pool of users that could have added to your loyal user base.
Hence, if your app is targeting multiple countries, try to do the relevant research, analyze users, their needs, and understand the overall trajectory to create a strong localization strategy.
Last but surely not least. Offering active customer service to your users is always paramount. You can always go for this service after you have successfully published your app and its attracting users.
Chatbots have become quite popular for providing exemplary customer support to users 24X7. You need to know that a great customer care service holds a great power to increase the retention rate.
These are the absolute surefire ways to generate higher ROI and profits from your business mobile app for Android and iOS. The fact that they are being employed by some of the most successful apps in the industry immediately removes any scope for doubt.
Note: Stay tuned for our take on how to submit your iOS app successfully to the App Store.