There are millions upon millions of app users worldwide and nearly all mobile use is spent in apps. What’s more, according to Flurry Analytics, the average mobile user uses their mobile device an estimated 87 hours per month. When you take this statistic into consideration, you realize that the average mobile user spends a lot of time in apps. This gives you plenty of opportunities to monetize your business app.
Of course, with the world’s biggest apps stores like Google Play and Apple’s App Store offering mobile users with instant access to over 2 million apps, successful monetization can be easier said than done.
Let’s face it, it’s not easy being a little fish in a big pond. But there are a variety of effective ways that you can make money from your business app. Here are 6 tips to help you make this happen:
1. Implement a relevant and meaningful monetization model
First and foremost, you need to make sure you know how to effectively target your audience. If you want to make the highest profit then your monetization efforts need to have value for your target audience. They need to be relevant and engaging to maximize revenue potential.
If you’re not sure how to achieve premium monetization for meaningful revenue, an app discovery platform like Appnext can help you understand real-life context as well as the next “moments” your users are most likely to experience in your app.
In essence, whatever monetization method you use needs to appeal to your users’ unique interests in real time.
2. Charge for installations
While this is not always the most profitable option, it can be a viable solution for some apps targeting certain markets. For instance, if your small business app is one that fits into niches like fitness, health, productivity, etc. a paid app could be the ideal monetization strategy.
That said, keep in mind that your website is one of the most valuable assets you have for driving paid app installs. The reason is that app stores do not provide you with adequate room to generate enough value for customers to pay for an install.
Your website, on the other hand, can be as valuable as you want it to be. It can be one of the best-hidden sources to encourage app installs. One of the main reasons for this is that the UX (user experience) is far superior to that which can be provided in an app store.
3. Use In-app advertising for your business mobile app
One of the most profitable and arguably the most common ways to monetize your business mobile app is via in-app advertising. This is especially true if you make your app free to download.
The key to using this type of business mobile app monetization method is to build a strong user base. That way they will engage with the ads that are presented to them while they experience your app. You’ll find that relevant ads are essential to engage users and maximize their experience.
For this reason, diverse ad-products with several units of diverse sizes tend to be best suited to mobile. The most popular types of in-app advertising from which you can choose include Interstitial ads, banner ads, video ads, text ads, and native ads.
If you manage to link up these ad-products with a keen understanding of data and metrics, you could command great CTRs and CPMs.
4. Don’t be afraid of SMS Marketing
According to serial entrepreneur Scott Gerber’s advice, part of your business app’s monetization strategy should involve asking your customers for their mobile numbers. The reason is that SMS marketing can be quite effective. It allows you to stay in touch and communicate with your customers.
Therefore, if you want to let them know about a promotion, a special offer or ask for feedback, you can easily do so via text. SMS marketing can be a great way to build brand loyalty.
In fact, according to a SHIFT Communications survey, 82% of consumers open every SMS text message they receive. This high percentage means that you have a very good chance of getting your message viewed by a large number of people.
5. Offer value with In-app purchases
Regardless of whether your app is paid or free, you can implement in-app purchases. These purchases should be offered to users as they move through your app to improve UX.
For your business app, you’re likely to find that non-consumable in-app purchase is better than consumable ones. The reason is the consumable types tend to be better for game apps because they can only be used one time, such as game credits. On the other hand, the non-consumable type lasts forever (e.g. an additional service or perk).
Just make sure that if you choose to go the in-app purchase route, what you offer will be seen as an increased value and an enhanced experience by the user.
6. Employ a subscription model
Like a freemium app model (the kind frequently used by game apps), if you choose a subscription-based monetization model for your business mobile app, you’ll be setting a limit to what users can access within your application. This style of monetization is ideal for apps that deliver value over a long period of time. Apps such as news, music, video and dating apps. Think of Netflix, Tinder, and Vogue.
That being said, keep in mind that the one downside to this monetization strategy is that in order for it to be effective, you need to ensure that the content you’re providing continues to be fresh, effective, and worth the user’s while. If the content is lacking, users won’t engage with it and will unsubscribe.
Conclusion
When it comes to monetizing your business mobile app, a good idea is to try blending different monetization strategies. Try a few advertisements, add some in-app purchases and some gated features to test how users respond. Sometimes it is only through trial and error that you can truly see what works best for your business app. Just remember to keep whatever strategy you use relevant and engaging. Always aim to give value to the consumer.
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