How to Select an Appropriate Pricing Strategy for the Project of a Mobile App?
December 24, 2020
For entrepreneurs, designing or developing mobile app trends seems to be the greatest stage. Hence, the development process of a start-up app involves the time taken, efforts spent on the designing, development & discovery of the process or application idea.
The strategy of product pricing plays a vital role in the market in order to get the initial traction of the app & visibility over the app store. The first goal of the developers is to provide value especially to the end-users but the pricing of every digital product seems to be an equal & important aspect. Hence, it should be evaluated carefully in order to get profit & scalable or reliable business of mobile app.
Introduction to the pricing strategy of product
Pricing strategy is mainly describing how to make money by developing your mobile applications. Every breakthrough idea comes up with a specific business model. While initially, a developer is mainly concerned about the quick launch of a minimum viable product, with having a specific price strategy in place of a robust product.
Digital product pricing seems like a simple task, but it isn’t. App Store & play store are extensive for the various mobile applications & different apps pricing models evolved.
Pricing strategy of products for mobile apps
1. Willing of the market to pay
The appropriate pricing strategy should be revolved around the market which has willing to pay and also to evaluate the product and its testing at levels of different pricing in order to check the response of the market.
The application seems to be a recurring stream of revenue. To be competitive, there is a requirement to use the latest functionality which offers constant updates. Hence, it seems to be important to know the holistic view for a recurring model of revenue. Mobile app developers also offer a free product to garn a high user base & generated advertisement revenue.
2. Psychology & human behaviour
The psychology of humans plays a vital role in evaluating product pricing. Consumers are using & keeping up with huge & quick strides towards technology. This seems to be the growing rise in consumerism which steers the advancement scope. In the present scenario, consumers seem to be well-read, & well informed along with this; they also strive to make out the conscious decision.
3. Research of competitive landscape & market
Pricing of market-driven is seemed to be a high approach in order to arrive at a point of an optimum price for mobile application. More opportunities can be evaluated as per researching the competitive landscape & evaluate the user base. For example, app launching at a relatively low price than competitors gives you the benefit in the market.
4. Build user demands product
Every project has its aim & can be built to address the concerns of users that must be resolved. When the developers design something as per the demand of the user, it seems to be easy to decide the appropriate price. To evaluate the pricing models of a mobile app, there is a requirement to evaluate the app development cost that involves various factors such as actual cost, the appropriate value offer by the product & the required money to strive.
Besides offering great functionality, your app seems to be customers affordable. This is fair to provide value to the users at an appropriate price. Pricing strategy penetration helps the businessman to attract new consumers because of low cost. It seems to be a classic strategy due to the fact that it uses behavioral psychology in order to drive the customers.
6. Robust strategy of market
In the current scenario, the reach or power of social media is expanding. Hence, there is a requirement to take the back up of pricing strategy through a strategy of robust marketing. Roll out with the advancements enhancements seems to be a good strategy to retain long-term users.
7. Paid vs Free
There are different factors involve to decide that application has to be free or paid. If you want a high user base, then a free application is a better choice. Along with the paid apps, the user will get extra features or functionalities. Paid applications seem to be the best choice if your application has advanced functionalities & unique features.
8. Understand the demands & targets of customer towards the product
It seems to be important to realize that no one size fits at all. There is a number of latest opportunities that can be tap out from the start-up app development. Developer thinking has to be abroad in this way that gives an alternate model for developing revenue.
Characterization of apps pricing strategies
The freemium type pricing model seems to be a modified version of a pricing strategy. This model is very common & highly used by industries or businesses. These apps are free to download but they have limited features or functionality. The opportunities for in-app purchase has been creating in order to generate money. It includes three types of freemium strategies:
- The approach of two tired in which users download & use product free but premium functionality is availed as per payment.
- The next model offers all functionality but for a limited time. The vision behind this model is that people get in touch with applications.
- The last model includes free functionalities & features except for the in-built advertisements.
The apps based on this model are free to download & income is generated by advertisements. Free apps seem to be a great tool in order to attract a number of users & facilitate good customer service. It involves two strategies, first one is completely free which includes well-established services or products. The next one is the in-app advertisement strategy, which includes advertisements, it means a user can download the application free but they have to watch the ads.
Paymium is defined as an amalgamation of paid model & freemium. For the appropriate premium apps, the users are not limited to pay for the application but they also pay an additive cost to add out the extra functionality. Although this strategy is not used in a wide area, it has the potential to offer high revenue streams. It has been seen that the pricing model is working well for the application of music & social networking. This will give you the quick gain traction with unique features or functionality.
For paid applications, users have to pay in order to download the specific application. Because of the high demand for freemium & free applications, the model of paid applications is least effective, with this: the user also has high expectations. If you want that user will purchase the paid application instead of free, then there should be an effective strategy of marketing for your application.
To leverage the strategy of paid pricing, various brands opt for a free trial. This seems to be a good tactic in order to approach the long term users.
The market of the app is growing by bounds & leaps. In order to penetrate the market with easiness, you have to select the strategy of appropriate pricing for the mobile application & out the aforementioned insights because of consideration. The model of pricing plays a vital role in order to evaluate the success of apps. This seems to be crucial to determine the correct monetization strategy. The pricing strategy of a product should meet the user & market expectations that also offer the values & helps in achieving the business goals. To know more about website development team roles and processes all you need to know about Get in touch with us.