Wondering how businesses can monetize an app? If you’ve built or are building an app, you’ll know that it isn’t cheap. Whilst having an app can be an amazing way to generate revenue, boost brand awareness and make the customer experience a whole lot smoother without much effort, it’s also really important that brands are taking steps to monetize their app.
After all, to ensure that your app is an amazing investment, you want to plan how it will make money. Of course, that’s not to say that every app should have a primary goal of making money. There are other reasons that people build apps. However, from a business perspective monetizing your app should be on your list of priorities somewhere.
So, how can businesses monetize an app? We’re taking a look at some of the most successful ways you can make money from your app to ensure solid ROI.
The most obvious way to monetize your app is to offer in-app purchases. Whether that means you sell your product via the app, or you offer an extra service within your app and charge the user a premium, both are amazing options to monetize the app.
When selling a product or service via an app, your business will benefit from:
In-app advertising is an amazing way to ensure that your ads are relevant to your customers, and they drive revenue for your business. Advertisers realize the value of boosting their brand presence across apps, so collaborating with brands to offer them space on your platform is an amazing way to generate income from your app.
When businesses hear about in-app advertising they often shudder and think “our customers would hate ads in the app”. Often this is because businesses think of ads as full screen ads that pop up and won’t let you navigate away, which may be a problem for your users.
However, the reality is that there are other options such as banner ads that are very passive and still offer a solid way to monetize your app. Banner ads can appear at the top or bottom of the screen, and feature a little ‘x’ so that your user can navigate away from them if they’re really finding it too much. This makes in-app advertising a quick and easy way to monetize your app with very little effort.
Are there brands that you could partner with to feature on each other’s app? Perfect partnerships are organic and natural, and increase the rate of traffic being driven to each other’s apps, websites or product pages.
Partnerships don’t have to be pushy, and the best ones often involve businesses that naturally align. For example, if you’re selling protein powder and delivering fitness and lifestyle content via your app, is there a gym group that also has an app that would benefit from ‘swapping’ advertising space?
Boosting the promotion of your app will help you utilize the space and opportunity you have on your new platform.
We touched on this previously, but offering a tiered system whereby users can pay for a more premium app experience can be very beneficial. People will pay for good content, or an extra level of service that they didn’t experience with the standard version.
When the premium service is dangled in front of the customer, and they are so close to that next level feature that they desperately want, they’ll often part with cash at the click of a button to get it. In this sense, offering a premium service within your app is a no brainer. It’s a crucial way to monetize your app with ease.
Loyalty programs are a great way to monetize your app by boosting purchases. When customers can track their loyalty progress easily via the app, they are more likely to make purchases that push them closer to their rewards.
A recent Shopify study found that 72% of people would select the store they were a loyalty member over other options. Reminding a user of their progress with your loyalty scheme is an amazing way to make money, and having an app allows you to do that very easily. With push notifications that remind the user of where they’re at is a great way to boost the likelihood that they’ll buy with you.
Whatever your businesses goals, having an app can help you boost revenue, boost brand awareness and offer a seamless user experience for your customers.
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