Build a stunning mobile app. Launch it on the store. Make lots of money.
That was the plan!
After all those sleepless nights, you finally launched the app you’ve been dreaming of for a while. It has got a decent number of downloads. But you are still scratching your head wondering why it is not making you money yet. Making a few tweaks here and there seemed to be the most obvious thing to do but it didn’t quite help!
May be, the problem is not in the app itself but in the way you are monetising it. When it comes to building recurring revenues on your app, you just can’t leave it to guesswork. Here are 5 proven monetisation strategies to help you maximize revenues on your retail app.
1. Embracing Freemium Model
When app market was relatively new, most apps were offered on a pay per download model. But as the app market became more and more saturated, users got bent on trying out the app before they pay anything. That’s when freemium model flew in and stole the show. Simply put, freemium model is where the users get to download the app for free but have to pay for unlocking additional features.
Freemium model works best for gaming apps. But it works great for retail apps as well. Just think of it – Let the users use your app for free but make them pay for gated features such as access to exclusive collection, free delivery, priority customer service and so forth.
2. Pushing In-App Purchases
In-app purchase model is pretty straight forward. It is deploying your app as a mobile store front or sales channel to sell goods or services. By far, in-app purchase has proved to be the most lucrative model for retail app store to ring up sales. But in order to be successful with in-app purchase model, you’ve to make sure your users find the products they need without any hassle, add them to the shopping cart and make the purchase in as few taps as possible. The more seamless the checkout process, the more often your users will drop in and make a purchase.
3. Running Loyalty Programs
As a retail business, the most daunting question for you is how to get repeated business and build recurring revenues on your app. The answer to this question lies in running loyalty programs on your app. Loyalty programs were always around, but with the advent mobile devices, printed loyalty cards look like relics of the past. When the user’s personal mobile device is the loyalty card, there’s no question of misplacing or losing the card or missing the end date. Loyalty program might seem to be an investing affair but it definitely gives you a leg up over your competition.
4. Hosting Third-Party Ads
Even if your retail app isn’t doing too well on the sales end, you can get paid for lending out your app space for advertisements. If you are wondering how to get such advertisers, here’s what you should know -Once your app earns a decent number of audience, the app publishers will bring in third parties who’ll be interested in placing specific ads in your app. Targeted ads based on location and buyer profiles open your app to new streams of revenue.
5. Fixing Abandoned Carts
Screen flow metrics show that a substantial fraction of users add products to their shopping carts but shy away when they are close to making a purchase. An abandoned cart might be a sore point for retailers but holds a lot of potential for unlocking revenues. Research reveals that personalised push notifications can save 2 out of 3 unfinished orders. Provided the message is based on user’s shopping history and relevant to his/her interests, push can turn abandoned carts into tapped revenues. Here’s an example – ‘Hi Natalie, the polka dot dress you left in your cart is now available at 15% discount. Buy now.’
But Wait, There’s More
A monetisation strategy that works well for one app might not work for another one. One size fits all simply doesn’t work here. To know which one works for you, ask yourself – What problem does your app solve and is your solution unique enough to make the users click on your app rather than your competitors?
Having said that, sales is not a one-time gig and no one knows it better than retailers. It’s an ever continuing process, but if you can execute on the above points, you are well on your way to get repeated visits from your users and enjoy recurring revenues.
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